An amount added to cost, usually as a percentage, to recover overhead, profit or a defined commercial adjustment.
Why it matters
Mark-up and margin are calculated differently, so the intended method should be explicit.
Example in practice
A subcontract cost is entered at net cost and the approved mark-up is applied as a separate calculation.
Use the term carefully
State the scope, amount, adjustment method or contract meaning whenever this term could change who carries cost or risk.