A Markup is an indirect cost associated with building the project. Some common indirect costs include general conditions, general requirements, insurance, bonds, permits, fees, and profit.
Markups can occur in the Milestone Estimate, Budget, and Item Estimates. Markups can be displayed differently depending on the cost display settings for the project.
Markups on Milestone Estimate/Budget
Milestone Estimates and Budgets each have a Milestone Markups section after the Direct Costs section, where you can enter indirect costs. There are two types of Markups supported in Join, lump sum or percentage-based markups.
Lump Sum Markups
A lump sum markup is a fixed dollar amount. It doesn't change based on the estimate subtotal. If you enter a lump sum markup in your Estimate, it will not be inherited by Items.
By default, all lump sum markups are applied to the subtotal of direct costs (S1 in the estimate table). A filter can also be selected so the lump sum costs are associated with a specific category. When the markups display costs mode is set to Show markups allocated, the lump sum costs will then be allocated across the specific categories that were selected.
A percent markup is a variable amount based on costs in the estimate (or budget) and any accepted Items. Items assigned to a Milestone will inherit percent markups from that Milestone Estimate. This means that in an Item Estimate, there will be two Markup sections, one for Item-specific markups and one that mirrors your percent markups from the Estimate called Milestone Markups.
When a percent markup is configured, there needs to be a subtotal(s) to reference before it can be applied. It can apply to the subtotal of all direct costs (S1 in the estimate table), other markups, or the project total. When multiple values are selected to reference, your markup applies to the sum of the selected values.
A filter can also be selected so the markup is calculated only on a specific Categorization (work breakdown structure). For example, if you want to apply a contingency on MasterFormat 050000 - Steel, a filter can be applied to S1 (Subtotal of direct costs) and apply a filter to that category. Once a filter is applied, a filled-in funnel will be displayed.
There are a few things to consider when deciding which Markup type to use. Percent markups are calculated numbers that can have up to seven decimal places for accuracy. For fees that have more significant figures, the lump sum Markup can be used to retain the exact value.
Markups on Items
The first section called Item Markups is for additional indirect costs specific to that item. They can be calculated as either a lump sum or a percentage. These can be created in each Item or added to the Default Item Template.
The second section called Milestone Markups shows all percentage-based markups created at the Milestone estimate level. All percentage-based markups in your milestone estimate will automatically be included in every Item estimate.
Milestone Markups can be turned off using the Applied column if they are not applicable to this Item.
Copy From Incorporated Item Markups
When using the Copy From workflow with the Running Total the Accepted Items Item Markups will be grouped together in the Incorporated Items Markups Section where you can edit and update as needed. They will be between the Direct Cost and Milestone Markups Section.