Article Content Navigation
- About Contract Event Add-ons, Overhead, Markup & Fee
- Types of Contract Event Markups Available
- Setting Up Project Default Contract Event Markup
- Modifying Project Default Contract Event Markup
- Deleting Project Default Contract Event Markup
- Additional Resources
About Contract Event Add-ons, Overhead, Markup & Fee
Within the Cost Management Process section of the Project Defaults default tab is the Add-Ons, Overhead, Markup, & Fee setup section. This is the location where default markups for the project are setup and will be used, and modified on a per event basis, within the Contract Cost Event Markups section of Contract Events.
These default markups are only applied to Contract Cost Event Types with the exception of Internal Change Events (ICO). Markups are never applied to Commitment Change Events or Internal Change Events.
Types of Contract Event Markups Available
The standard markup setup that is available takes a pre-defined percentage that applies it to Contract Event Cost Items based on their assigned allocation (Labor, Material, Equipment, Subcontractor, Other, Overhead). This markup is calculated based on the entered cost and is applied to the selected Contract Item of the Contract Cost Event Item.
Example of Standard Markup Applied to a Contract Event
Cumulative markup setup builds on the standard markup setup (standard markup is calculated first) and can be used to increase markup values in a successive order of operation. This is sometimes referred to as Circular markup. Cumulative, or circular, markup can be used alongside standard markups. Cumulative Markup can be setup in multiple steps.
Example of Cumulative Markup Applied to a Contract Event
Markup Applied to a Selected Contract Item
This feature is available for the specific use-case for needing to see all project markup in its own line item of the Contract, or SOV. It is important to note that markup that is defined to a Contract Item cannot be modified on a per-change event basis once it's been calculated - please see below example. The markup defined to be applied to a Contract Item is shown highlighted and does not contain and edit function.
Example of Markup Applied to Contract Item
Markup CANNOT be cumulative and assigned to a Contract Item
Setting Up Project Default Contract Event Markup
1. Navigate to the Project Defaults section of the Project Setup module
2. Open the Defaults tab
3. Scroll down to the Cost Management Process and Configuration section, to the Add-ons, Overhead, Markup & Fees Setup grid.
4. Select the Add New Markup Item button
5. Enter the information for the default markup being created and select the appicable allocations.
6. Select the checkbox to the left to save the new markup entry
7. Repeat steps 5 and 6 until all markup has been defined on the project
- The Cumulative Order column is only used to setup cumulative, or circular, markup. For multi-step cumulative markup, the Cumulative Order signifies the order in which they cumulate.
- The Contract Item column is only assigned when that markup is to be applied to a specific contract item. Markups that are applied to a Contract Item cannot be edited on a per cost event basis.
Modifying Project Default Contract Event Markup
It is important to note that modifying project default markup will not change the markup table on any existing Contract Cost Event, the markup table on each Contract Event that needs updating will need to be manually reset.
For integrated Cost Management modules, markup will not be able to be modified on any synchronized Contract Event.
7. Update any applicable Contract Cost Events by navigating to them and using Restore to Default Values within the markup table.
Deleting Project Default Contract Event Markup
Deleting markup will not change the markup table on any existing Contract Cost Event, the markup table on each Contract Event that needs updating will need to be manually reset if this markup should not be included.
For integrated Cost Management modules, markup will not be able to be removed on any synchronized Contract Event.