---
title: "Overhead and profit (O&P) | Drywall Glossary"
url: https://tapeandfloat.com/glossary/overhead-and-profit.html
language: en
author: James Grokman, CEO, TapeAndFloat
updated: 2026-10-28
---

# Overhead and profit (O&P)

**Overhead is what it costs to run your business, such as insurance, trucks, office and tools, that isn't tied to one job. Profit is what's left after all costs. O&P is the amount you add on top of direct job cost for both.**

## Why it matters on a drywall job

- Leaving overhead out of a bid can mean working at a loss even when the job goes well.
- Change orders usually carry O&P too. Check what your contract allows.

## Related guides and tools

- [How to bid drywall](https://tapeandfloat.com/guides/how-to-bid-drywall.html)
- [Drywall bid sheet template](https://tapeandfloat.com/templates/drywall-bid-sheet-template.html)
- [All glossary terms](https://tapeandfloat.com/glossary/)

---

TapeAndFloat helps drywall and tape-and-float contractors keep up with the office side: bids, change orders, pay apps and follow-ups. Free 60-day pilot. If you stay on, we agree on the price with you up front.

**[Join the free pilot](https://tapeandfloat.com/office-assistant.html)**

_¿Prefiere español? [Gastos generales y utilidad (O&P)](https://tapeandfloat.com/es/glosario/gastos-generales-y-utilidad.html)._