Estimate global markups

Global markups can either be a fixed amount, percentage markup or step-bond calculation on all estimate items. Examples of global markups are material sales tax, overhead, and profit. Global markups can either be distributed (eg. hidden) over the estimates cost code sections and line items or shown separately at the bottom of an estimate proposal.

Global markup types

• % of Cost Totals
• % of Sell Totals
• % Margin on Sell Totals
• Step Bond % on Cost Totals
• Step Bond % on Sell Totals
• Lump Sum Markup

Percentage of sell totals compared to Percentage margin on sell totals

Percentage of Sell Totals = Item Sell Total * (Percent Markup)

Percentage Margin on Sell Totals = Item Sell Total * (1 / (1 - Percent Markup))

Examples (10% on $100,000 Sell Total):

Percentage of Sell Totals = $100,000 * 0.10 = $10,000

Percentage Margin on Sell Totals = $100,000 * (1 / (1 - 0.10)) = $11,111

Special instructions for step bond markups

The step amounts would be cumulative and the last step would be higher than the estimate proposal to ensure the bond is calculated for the entire amount.

Include in cost option

Certain global markups such as Material Sales Tax should be shown on both cost and sell sides. For these types of markups, the Include in Cost checkbox should be selected. However, markups such as Fee or Profit would have this option unchecked so it appears only on the sell side.

Resource and global markup filter options

• Resource Rates: Materials, Labor, Equipment, Sub, Other
• Include Previous Global Markups, which is based on the Markup Item #.

Add global markups

1. Within the Estimate, select the Global Markups tab.
2. Under the Markups section, click Add / Import and select Add Manually from the dropdown.
3. Enter the Item # and the Markup Description.
4. Select the Markup Type from the dropdown.
5. Enter the Percentage, e.g. 5%, or Amount/Percentage for Step Bond Calculations.
   You can enter a negative percentage in the case of a discount.
6. If the markup amount should be included in the cost budget as well as on the proposal and sell side, select the Include In Cost option.

   Bonding or material sales tax would be example markups where this field would be checked.

7. To distribute the calculated global markup amount proportionally across the Estimate Cost Codes and Line Items, select the Distribute / Hide Markup option. Otherwise, the markup will be shown as a separate line item at the bottom of the proposal.
8. Select the Resources To Markup.

   Sage Construction Management has five built-in resources: material, labor, equipment, sub, and other. For example, estimate line items can have separate cost and proposal rates for each resource. When calculating the global markup, resources that are selected or checked will be included. In addition, previous markups (determined by the item number) can be included in the amount that the markup is being calculated on.

9. Click Save.