Markup Overview

Contents

A project's success requires effectively managing change during a project. Change Management is designed to help you track the change process more accurately. You can also manage overhead and profit by using markup in change documents.

Markup enables you to add overhead, profit, or any other markup categories you create to change documents. It automates overhead and profit calculations in Change Management.

You can set default values or percentages for overhead, profit, and other markup categories by using the Markup section of the contract or purchase order against which the change is written. The default values are then used for all markup calculations for changes to that contract or purchase order.

You can set different markup values for individual contracts and purchase orders. When applying overhead, you may need to change the percentage in certain situations. You can have different markup values based on total labor, material, and equipment costs. You can apply markup to your budgeted costs or direct costs, as well as to the total committed costs.

Markup provides you with a comprehensive method for managing changes from the initial estimate to the final approval, including reporting to compare the total of initial change costs plus the total markup for changes and the combined costs for changes. There is a printable form for Proposals and change documents with markups.

When applying markup, the module calculates the amount to mark up on the Markup for Changes tab of a change order or proposal document as follows:

• If a source cost code is used, the applied cost for that row is used as the amount to apply markup against.
• If there is no source code, the previous Subtotal amount will be marked up.
• If there is no previous Subtotal row, the Document Start row’s Total Cost column will be marked up.