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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:
    • 'Admin' on the project's Prime Contract tool.
      Note: 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.
  • Prerequisites:
    • Financial markup is enabled by default on the Advanced Settings subtab. See "Edit Advanced Settings Subtab in Prime Contract" in the See Also section below.
    • You can not associate financial markups to cost codes or categories if the Budget tab is not turned on.
    • The  Sub Job list requires the Sub Job feature to be enabled. See Enable Sub Jobs or Enable Sub Jobs for Sage 300 CRE. In addition, sub jobs must already be added to the project.  See Add a Sub Job to a Procore Project.
    • COMING SOON! The ERP Prime Contract Item list requires the Company ERP Integrations tool to be enabled (see Request to Enable the ERP Integrations Tool). Procore must also be configured for one of the supported integrated ERP systems. This field is also only visible on Vertical Markup instances. 
  • Additional Information:
    • 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.  

Steps

  1. Navigate to the project's Prime Contract tool.
    Note: Financial markup must be turned on in the advanced settings subtab. See "Edit Advanced Settings in the Prime Contract Subtab" in the See Also section below.
  2. 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.

  3. 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:

  4. 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
       
  5. 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). 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
     
  6. Under Will Map To,  select the following from the drop-down list:

    pc-will-map-to-with-erp.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.
    • COMING SOON! ERP Prime Contract Item. Select the desired ERP Prime Contract Item from the list. These selections correspond to the existing SOV line items on the project's prime contract.
      Notes:
      • If your company has enabled the ERP Integrations tool, the ERP Prime Contract Item field is only visible and available.
      • This field is also only visible on Vertical Markup instances. 
  7. 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. 
  8. Click Save.

See Also

 

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