To add financial markup to prime contract change orders.
The financial markup feature allows you to build in a default markup on any of your prime contract change orders. Within the tool you have the option to set the markup to be calculated on an individual line item or as a subtotal of all your line items on the change order. You can associate financial markup to cost codes, categories, and sub jobs to ensure that the money gained from markup on change orders goes to the correct place on the budget.
Things to Consider
- Required User Permission: 'Admin' on the project's Prime Contract tool.
- Financial markup is enabled by default on the Advanced Settings subtab. See Edit Advanced Settings Subtab in Prime Contract.
- Users with 'Standard' level permissions on the project's Change Orders and Prime Contract tool can see the financial markup on the change order's schedule of values (SOV), but will not be able to create financial markups.
- You can not associate financial markups to cost codes or categories if the Budget tab is not turned on.
- If you do not select a Cost Code or Category to associate a financial markup with in the Budget, the markup will appear on the Budget as Cost Code=None, Cost Type=None, and Division=None.
- Horizontal markup will be included in the subtotal of the SOV and will be included in the vertical calculation if the markups are used in conjunction.
- Navigate to the project's Prime Contract tool.
Note: Financial markup must be turned on in the advanced settings subtab.
- Click the Financial Markup tab. Here is where you can set up the default financial markups that will be applied to all change orders, but markups can be modified or removed on a change order by change order basis.
- Click New Horizontal Markup or New Vertical Markup.
Horizontal markup will display the markup in the same row as the line items, as seen below in the Insurance and Contractor's Fee column.
Vertical markup will display the markup below the line items, as seen below in the Insurance and Contractor's Fee row.
Note: You can inline edit the subtotal of the prime change order markup. This allows you to enter a lump sum markup amount in lieu of percent based.
Example of Change Order with both Vertical and Horizontal Markup:
- Enter information in the Markup List:
- Markup Name - Enter in a name for the financial markup.
- Markup Percentage - Enter in the percentage for the markup.
- Compounds Markup Above - If this box is not selected, markup percentage is calculated on the change order subtotal. If the box is selected, markup percentage is calculated on the subtotal with the addition of any preceding markups.
- By default, the markup will apply to all categories, but you can remove any categories here.
- Select a Cost Code, Category, and Sub Job that the financial markup associates to. This ensures that the money gained from markup on change orders goes to the correct place on the budget.
Note: If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking to confirm to add this line item to the budget. If OK is selected, this line item will be added directly to the budget with a "?" next to the line item once a change order is created with financial markup. See Add a Partial Budget Line Item.
If you do not select a sub job, cost code, and category, the markup will appear on the Budget as Cost Code=None, Cost Type=None, and Division=None.
- Click Save.