Change Order Cost Calculator
Estimate the total cost of a construction change order including labor, materials, equipment, subcontractor costs, overhead, profit markups, and bond premiums.
Labor Costs
Material Costs
Equipment Costs
Subcontractor Costs
Overhead & Profit
Bond & Insurance
Formulas Used
1. Labor Cost
Labor Cost = Labor Hours × Fully Burdened Labor Rate
2. Marked-Up Costs
Material Cost (marked up) = Material Cost × (1 + Material Markup %)
Equipment Cost (marked up) = Equipment Cost × (1 + Equipment Markup %)
Subcontractor Cost (marked up) = Subcontractor Cost × (1 + Subcontractor Markup %)
3. Direct Cost Subtotal
Direct Subtotal = Labor Cost + Material (marked up) + Equipment (marked up) + Subcontractor (marked up)
4. Overhead
Overhead = Direct Subtotal × Overhead Rate %
5. Subtotal Before Profit
Subtotal Before Profit = Direct Subtotal + Overhead
6. Profit
Profit = Subtotal Before Profit × Profit Margin %
7. Subtotal Before Bond
Subtotal Before Bond = Subtotal Before Profit + Profit
8. Bond / Insurance
Bond Cost = Subtotal Before Bond × Bond Rate %
9. Total Change Order Cost
Total = Subtotal Before Bond + Bond Cost
Assumptions & References
- Fully Burdened Labor Rate includes base wages, payroll taxes (FICA ~7.65%), workers' compensation, general liability insurance, and fringe benefits. Typical range: $45–$150/hr depending on trade and region.
- Material Markup covers procurement, handling, storage, and waste. Industry standard is typically 10–20% (AGC guidelines).
- Equipment Markup covers wear, fuel, maintenance, and mobilization. Typically 10–15%.
- Subcontractor Markup covers coordination, risk, and administration. Typically 5–15% per AIA and AGC standards.
- Overhead Rate covers home office and field overhead (supervision, project management, temporary facilities). Typical range: 8–15% of direct costs.
- Profit Margin is applied after overhead. Typical range: 5–15% depending on project risk and market conditions.
- Bond / Insurance Rate is applied to the total pre-bond cost. Performance and payment bond rates typically range from 0.5–3% of contract value (Surety Information Office).
- Many public contracts (e.g., federal, state DOT) cap overhead + profit on change orders at 15% overhead and 10% profit per FAR 52.243-4 and similar regulations.
- Reference: Associated General Contractors of America (AGC), American Institute of Architects (AIA) A201 General Conditions, Federal Acquisition Regulation (FAR) Part 43.