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Procore

Add Financial Markup to Prime Contract Change Orders

Objective

To add financial markup to prime contract change orders.

Background

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:
    • To add financial markup, 'Admin' permission on the Prime Contract tool.
    • To view financial markup on the change order's Schedule of Values (SOV), 'Standard' permission on the Change Orders and Prime Contract tool. 
  • Prerequisites:
  • If you want to export financial markup to Sage 300 CRE:
    Note: This field is only visible on instances of vertical markup. 
  • Additional Information:
    • If you do NOT select a cost code or cost type (a.k.a., category) for the financial markup, it will appear as:
      • Cost Code=None
      • Cost Type=None
      • 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.  

Steps

  1. Navigate to the project's Prime Contract tool.
  2. Locate the prime contract where you want to add financial markup. 
  3. Click Edit.
  4. Click Financial Markup
    Note: If you do NOT have this option, the Financial Markup tab must be enabled. See Configure Advanced Settings: Prime Contract.
  5. Under Financial Markup Settings, you have the option to add horizontal or vertical markup to apply to all change orders. 
    Note: You can modify/remove markup settings on a change order by change order basis.



    financial-markup-tab.png
     
  6. 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 contract 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:

  7. 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.

      pc-markup-list.png
       
  8. Under Applies to Cost Types,  all of the available cost types are listed here by default (see "What are Procore's default cost types?" and "Set Default Cost Types" in the See Also section below). If you want to remove one or more cost types, click the corresponding "x" next to the desired selections.


    pc-applies-to-cost-types.png
     
  9. Under Will Map To,  select the following from the drop-down list:

    will-map-to-estimate.png

    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" in the See Also section below.
     
    • Sub Job. Select the desired sub job from the list.  
      Note: This field only appears if the sub job feature is enabled in Procore (see Enable Sub Jobs or Enable Sub Jobs for Sage 300 CRE) and sub jobs have been added to the project.  See Add a Sub Job to a Procore Project.
    • Cost Code. Select the desired cost code from the list. 
    • Cost Type. Select the desired cost type from the list.
    • ERP Prime Contract Item. Select the desired Schedule of Values (SOV) line item from the project’s Prime Contract. This ensures that the estimate value (i.e., the SOV value without vertical markup) and the revenue value (i.e., the SOV value with vertical markup) are synced to the line item that you specify in the integrated ERP system.
      Notes: This field is only visible when:
      • Your company account has enabled the ERP Integrations tool.
      • The ERP Integrations tool is configured to use either the Integration by Ryvit or Sage 300 CRE®. 
      • You are creating vertical markup on a prime contract change order.
    • Export Markup to Estimate. Select this checkbox to enable the ability to sync financial markup on a prime contract to a Sage 300 CRE® estimate. 
      Note: This checkbox is only available to customers with the Procore + Sage 300 CRE® integration. 
  10. If you do not select a sub job, cost code, and cost type, the markup will appear on the Budget as Cost Code=None, Cost Type=None, and Division=None. 
  11. Click Save.

See Also

 

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