Money & Pricing
Overhead and profit dispute
The argument over whether a claim should include overhead and profit, common when a carrier scopes a job as repairs a homeowner could manage or as several trades. Contractors argue the work needs a general contractor to run it; carriers argue it does not, and the answer turns on the policy and the scope.
Full guide: op trap true budget insurance claims
More money & pricing terms
- O&P
Overhead and Profit: the contractor's business costs and margin, added on top of labor and materials on claims where multiple trades are involved.
- Overhead
The contractor's fixed business costs: office, insurance, vehicles, software, and administrative staff.
- Override pricing
Manually replacing a line item's unit price in Xactimate instead of using the price list. Overrides are visible in the estimate and are a frequent point of dispute, because a carrier may reprice the line back to the list price unless the change is documented and justified.
- Per-line pricing
Charging for an estimate based on the number of line items it contains, so bigger scopes cost more.
- Price list region
The geographic area whose labor and material costs Xactimate uses to price a line item. If the estimate was written for the wrong region, the fix is to correct the region or ask for a reprice, not to hand-edit unit prices line by line.
- Price override
A manual change to a unit price that replaces what the price list would charge. Overrides must be documented, because carriers and reviewers reject unexplained ones, and an override on labor or material is where a supplement argument usually starts.
Common questions
What does "Overhead and profit dispute" mean in Xactimate estimating?
The argument over whether a claim should include overhead and profit, common when a carrier scopes a job as repairs a homeowner could manage or as several trades. Contractors argue the work needs a general contractor to run it; carriers argue it does not, and the answer turns on the policy and the scope.
Where does "Overhead and profit dispute" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow, see the full guide for where it fits.
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