Add global markups to estimates
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Global markups apply to all estimate items and can be calculated as a fixed amount, a percentage, or a step‑bond calculation. Common examples include material sales tax, overhead, and profit.
Global markups can be either distributed across cost code sections and line items (for example, hidden within item costs) or shown separately at the bottom of the estimate proposal.
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Global markup types:
- % Margin of Sell Totals
- % of Cost Totals
- % of Sell Totals
- Bond on Cost Totals
- Bond on Sell Totals
- Lumpsum Amount
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Bond markups: Step amounts are cumulative, and the final step must exceed the estimate proposal total to ensure that the bond is calculated on the full amount.
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These two calculations apply markups differently, which results in different sell values.
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Percentage of sell totals calculates markup as a percentage of the item’s sell total.
Formula: Item Sell Total * Percent Markup
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Percentage margin on sell totals calculates markup so that the specified percentage represents the margin on the final sell total.
Formula: Item Sell Total * (1 / (1 − Percent Markup))
Example:
10% markup on a $100,000 sell total:
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Percentage of sell totals: $100,000 × 0.10 = $10,000
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Percentage margin on sell totals:$100,000 × (1 ÷ (1 − 0.10)) = $11,111
- Go to Leads or Projects and select the lead or project in the Quick Select section.
- On the Lead or Project Home page, select Estimates in the Preconstruction section.
- Select the estimate number or title from the list.
- Select View Estimate.
- Within the estimate, select the Global Markups tab.
- In the Markups section, select Add / Import > Add Manually.
- Optionally, update the Item # as needed.
- Enter the Markup Description.
- Select the Markup Type from the dropdown.
- Do the following as needed:
- For percentage markup types, enter the Percentage.
For example, 5%.
You can enter a negative percentage in the case of a discount. For bond markup types, enter the maximum amount and corresponding percentage for each step in the Step Bond Markup section.
For Lumpsum markup types, enter the amount for each resource in the Markup Totals section.
- For percentage markup types, enter the Percentage.
- If the markup amount must be included in the cost budget and on the proposal and sell side, select the Include In Cost checkbox.
Bonding or material sales tax are example markups where this field must be selected. Markups such as fees or profit must have this option deselected so that they appear only on the sell side.
- To distribute the calculated global markup amount proportionally across the estimate cost codes and items, select the Distribute / Hide Markup checkbox.
When this checkbox is not selected, the markup is shown as a separate item at the bottom of the proposal.
- Select the Resources To Markup.
Sage Construction Management includes five built‑in resources: material, labor, equipment, subcontract (sub), and other. Each estimate item can have separate cost and proposal rates for each resource.
When calculating a global markup, only the resources that are selected are included in the calculation. You can also select to include previous markups in the amount the markup is calculated on, based on the item number.
- Select Save.