What O&P is
- Overhead: contractor's cost of running the business
- Profit: reasonable margin
- Typically 10% overhead + 10% profit = ~21% of base scope
- Added as separate supplement
When O&P applies
Industry standard: applies when a general contractor is reasonably required to coordinate multiple trades.
Typical triggers
- Three or more trades
- Multi-phase project
- Structural work
- Supervised renovation
Typical non-triggers
- Single-trade replacement (e.g., new roof only)
- Like-for-like swap (water heater, appliance)
- Minor repair (no coordination needed)
Florida case law
- Supports O&P where reasonable
- Standard: "reasonably likely to be incurred"
- Not limited to only when actually charged
- Carrier burden to show not reasonable
How carriers omit
- Scope characterized as "minor"
- Denial of trade-coordination need
- "Owner-coordinated" claimed
- Threshold arguments
How to counter
- Identify multi-trade coordination in scope
- Specific general-contractor quote with O&P
- Cite Florida case law
- Request written explanation of omission