Adding CPR or CO markups

Markups are percentage adjustments added after all the proposed cost items have been documented on a change proposal request (CPR) or change order (CO). Examples of markups are overhead, general conditions, insurance, and fees.

After default markups are established, they can be used in future CPRs and COs. Changes to default markups can be made during the course of the project, but they do not affect existing CPRs and COs.

Adding Default CPR/CO Markups in Prime Contract Details Form

  1. On the Project home page, from the Project menu, select Prime contracts.
  2. On the Prime contract list, select a contract number to view the contract details.
  3. Under Project Information Linked To Prime Contract, select View default markups - CRPs and COs.
  4. Click Add.
  5. Enter the Order # and Description.

  6. Select a Markup Type, and enter Markup Amount.

    $100.00 = 100

    5% = 5

    To learn more, see differences between standard and margin markups.

  7. If applicable, select the Include in cost budget checkbox.

  8. If previous CPR or CO markups should be included in the calculation, select the Include previous checkbox.

    Previous is based on the order number.

  9. Select the Job cost code.
  10. If applicable, select the Tax Code.
  11. Select Save or Save & New.

Differences between standard and margin markups

Margin Markup Amount = (CPR or CO Items Subtotal Excluding Markups / (1 - Margin Markup %)) - CPR or CO Items Subtotal Excluding Markups

Standard Markup Amount = CPR or CO Items Subtotal Excluding Markups * Standard Markup %

Example:

Margin Markup Example   Standard Markup Example
Item Type Item Amount % of Total   Item Type Item Amount % of Total
CPR or CO Items Excluding Markups $13,100.00 90.000%   CPR or CO Items Excluding Markups $13,100.00 90.909%
10% Margin Markup $1,455.56 10.000%   10% Standard Markup $1,310.00 9.091%
Total $14,555.56     Total $14,410.00  

Calculate multiple margin markups using subtotal versus total

Because there can be multiple default change markups and different types of markups for a project, use the item subtotal for calculations, not the total. This rule is especially important when margin markups are used. The example below shows how using the subtotal differs from using the total when calculating margin markups.


Example Margin Markups:

  • Margin Markup 1: 15% | Include Previous = Unchecked
  • Margin Markup 2: 10% | Include Previous = Unchecked
  • Margin Markup 3: 05% | Include Previous = Unchecked

Margin Markup Formula Using Subtotal: (Sage Construction Management Method)

Margin Markup 1 Amount = (CPR or CO Items Subtotal Excluding Markups / (1 - Margin Markup 1 %)) - CPR or CO Items Subtotal Excluding Markups

Margin Markup 2 Amount = (CPR or CO Items Subtotal Excluding Markups / (1 - Margin Markup 2 %)) - CPR or CO Items Subtotal Excluding Markups

Margin Markup 3 Amount = (CPR or CO Items Subtotal Excluding Markups / (1 - Margin Markup 3 %)) - CPR or CO Items Subtotal Excluding Markups


Margin Markup Formulas Using Total:

Total = CPR or CO Items Subtotal Excluding Markups / (1 - (Margin Markup 1 + Margin Markup 2 + Margin Markup 3))

Margin Markup 1 Amount = Total * Margin Markup 1 %

Margin Markup 2 Amount = Total * Margin Markup 2 %

Margin Markup 3 Amount = Total * Margin Markup 3 %


Example:

Margin Markup Example Using Subtotal   Standard Markup Example Using Total
Item Type Item Amount % of Total   Item Type Item Amount % of Total
CPR or CO Items Excluding Markups $13,100.00 90.000%   CPR or CO Items Excluding Markups $13,100.00 90.909%
 
Margin Markup 1: 15% $2,311.76 13.167%   Margin Markup 1: 15% $2,807.14 15.000%
Margin Markup 2: 10% $1,455.56 8.291%   Margin Markup 2: 10% $1,871.43 10.000%
Margin Markup 3: 5% $689.47 3.927%   Margin Markup 3: 5% $935.71 5.000%
Total $17,556.79     Total $18,714.29