How to calculate overhead and profit in construction?

In order to calculate overhead and profit in construction, it is necessary to first identify all costs that are associated with the project. This includes labor costs, material costs, equipment costs, rental costs for tools and machinery, overhead costs such as insurance and taxes, and any other costs related to the project. After these costs have been determined, you can then calculate the overhead by subtracting the direct costs from the total cost of the project.

The overhead is the total amount of money that is required to cover all of the non-direct costs of the project. Once this amount is calculated, the profit can be determined by subtracting the overhead costs from the total cost of the project.