The allowance or percentage used to recover business overheads and provide profit above direct project cost.
Why it matters
Separating OH&P from direct cost makes the commercial build-up easier to review and adjust.
Example in practice
The internal estimate shows direct cost, project preliminaries and OH&P as distinct parts of the total.
Use the term carefully
Distinguish business overhead recovery from project preliminaries, and identify the cost base receiving the uplift.
Compare related terms
Use the price-review checklist to keep the client wording and approved basis consistent.