Source: https://www.quantsurv.com/resources/glossary/ohp Content format: Markdown version of the public page. Content reviewed: 2026-09-30 # OHP (overheads and profit): definition and example The amount added to the cost of work to cover running your business and a profit, usually as a percentage. By [Jack Butler-Kettle]() · Updated 30 September 2026 Guidance for England and Wales. Check the contract, amendments and facts that apply to your job. ## What it means in practice Read this alongside [NRM 2: Detailed measurement for building works](). Overheads and profit describe allowances within a price, rather than a universal percentage payable on every claim. Rates may already contain these allowances. The contract's valuation rules determine whether a separate addition is appropriate and what it applies to. Identify what is already included before adding a mark-up. [Variation recovery]() can help present a calculation without overlapping allowances. ## Worked example ### The facts A variation has £2,000 of eligible direct costs and an assumed agreed 10% overhead-and-profit addition. ### What happens 1. The subcontractor confirms that the direct costs do not already include that addition. 2. It calculates £200 separately and records the source of the 10% rate. ### What this shows The illustrative total is £2,200, but the same percentage is not automatically appropriate for another contract or claim. ## Sources 1. [NRM 2: Detailed measurement for building works, UK 2nd edition, October 2021 (reissued October 2022 as RICS practice information)](). RICS.