Add 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 set, they can be applied to CPRs and COs. You can update markups during the project, but changes will not affect existing CPRs or COs.

Add default CPR/CO markups in prime contracts

Go to Projects and select the appropriate project from the list.
On the Project Home page, select Prime Contracts in the Client Contract Admin section.
Select the prime contract number from the list.
In the Project Information Linked To Prime Contract section, select View Default Markups - CPRs and COs.
Select Add.
Update the Order Number if needed.
Enter the Description.
Select a Markup Type from the dropdown.
If applicable, select one or more Cost Resources.
Depending on the markup type selected above, enter the Markup %, Markup Amount, or Margin %.
For example, enter 100 if the amount is $100.00, and enter 5 if the percentage is 5%. See the examples in the table below for differences between standard and margin markups.
Optionally, select the Include In Cost Budget checkbox if applicable.
Optionally, if previous CPR or CO markups must be included in the calculation, select the Include Previous checkbox.

The order number determines previous CPR or CO markups.
Select the Job Cost Code.
Optionally, select a Tax Code if applicable.
Select Save or Save & New.

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 %

For example:

Margin markup example
Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.000%
10% margin markup	$1,455.56	10.000%
Total	$14,555.56

Standard markup example
Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.909%
10% standard markup	$1,310.00	9.091%
Total	$14,410.00

Projects can have multiple default change markups and different types of markups. You must do the calculations using the item subtotal, not the total, especially when using margin markups. The example below shows how using the subtotal differs from using the total when calculating margin markups.

Example margin markups:

Margin markup 1: 15% and Include Previous option deselected.
Margin markup 2: 10% and Include Previous option deselected.
Margin markup 3: 05% and Include Previous option deselected.

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 %

For example:

Margin markup example using subtotal
Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.000%
Margin markup 1: 15%	$2,311.76	13.167%
Margin markup 2: 10%	$1,455.56	8.291%
Margin markup 3: 5%	$689.47	3.927%
Total	$17,556.79

Standard markup example using total
Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.909%
Margin markup 1: 15%	$2,807.14	15.000%
Margin markup 2: 10%	$1,871.43	10.000%
Margin markup 3: 5%	$935.71	5.000%
Total	$18,714.29