Do contractors usually charge tax for insurance claims?

[Terry Hollinsworth]

Insurance agreed to pay 21K to replace roof. After we gave the contractor our insurance papers he charged quoted us: 

Roof replacement cost

TAX

O&P (Overhead and Profit) 

His quote convinently came out to 20K. Do contractors usually charge tax and overhead and profit?

[Jerry V.]

Terry, just replied to you about the claim and all in another post you had (about all this)

Answers:  There are taxes on "materials" that are done... and the O/P is only applicable if, the Contractor is doing 3 or more different trades on a project. I.e. Roof, gutters, siding, fencing ... BUT, the insurance companies don't always pay O/P now!

As said in my other post, call us ... we're in your area! (Dallas, TX area -  J's Roofing)