Add CPR or CO markups

Markups are percentage adjustments added after all the proposed cost items have been documented on a change proposal request (CPR) or change order (CO). Examples of markups are overhead, general conditions, insurance, and fees.

After default markups are established, they can be used in future CPRs and COs. Changes to default markups can be made during the project, but they do not affect existing CPRs and COs.

Add default CPR/CO markups in prime contracts

Go to Projects and select the project in the Quick Select section.
On the Project Home page, select Prime Contracts under the Client Contract Admin section.
Select the Prime Contract # to view the details.
In the Project Information Linked To Prime Contract section, select the View Default Markups - CRPs and COs link.
Select Add.
Enter the Order # and Description.
Select a Markup Type.

For example, enter 100 if the amount is $100.00, and enter 5 if the percentage is 5%. See the examples in the table below for differences between standard and margin markups.
If applicable, select one or more Cost Resources.
Depending on the markup type selected above, enter the Markup %, Markup Amount, or Margin %.
If applicable, select the Include In Cost Budget checkbox.
If previous CPR or CO markups must be included in the calculation, select the Include Previous checkbox.

Previous CPR or CO markups are determined by order number.
Select the Job Cost Code.
If applicable, select the Tax Code.
Select Save or Save & New.

Differences between standard and margin markups

Margin markup amount = (CPR or CO items subtotal excluding markups / (1 - margin markup %)) - CPR or CO items subtotal excluding markups

Standard markup amount = CPR or CO items subtotal excluding markups * standard markup %

For example:

Margin markup example			Standard markup example
Item type	Item amount	% of total	Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.000%	CPR or CO items excluding markups	$13,100.00	90.909%
10% margin markup	$1,455.56	10.000%	10% standard markup	$1,310.00	9.091%
Total	$14,555.56		Total	$14,410.00

Calculate multiple margin markups using subtotal versus total

There can be multiple default change markups and different types of markups for a project, so calculations must be done using the item subtotal and not the total, especially when margin markups are used. The example below shows how using the subtotal differs from using the total when calculating margin markups.

Example margin markups:

Margin markup 1: 15% and Include Previous option deselected.
Margin markup 2: 10% and Include Previous option deselected.
Margin markup 3: 05% and Include Previous option deselected.

Margin markup formula using subtotal (Sage Construction Management method):

Margin markup 1 amount = (CPR or CO items subtotal excluding markups / (1 - margin markup 1 %)) - CPR or CO items subtotal excluding markups
Margin markup 2 amount = (CPR or CO items subtotal excluding markups / (1 - margin markup 2 %)) - CPR or CO items subtotal excluding markups
Margin markup 3 amount = (CPR or CO items subtotal excluding markups / (1 - margin markup 3 %)) - CPR or CO items subtotal excluding markups

Margin markup formulas using total:

Total = CPR or CO items subtotal excluding markups / (1 - (margin markup 1 + margin markup 2 + margin markup 3))
Margin markup 1 amount = total * margin markup 1 %
Margin markup 2 amount = total * margin markup 2 %
Margin markup 3 amount = total * margin markup 3 %

For example:

Margin markup example using subtotal			Standard markup example using total
Item type	Item amount	% of total	Item type	Item amount	% of total
CPR or CO items excluding markups	$13,100.00	90.000%	CPR or CO items excluding markups	$13,100.00	90.909%

Margin markup 1: 15%	$2,311.76	13.167%	Margin markup 1: 15%	$2,807.14	15.000%
Margin markup 2: 10%	$1,455.56	8.291%	Margin markup 2: 10%	$1,871.43	10.000%
Margin markup 3: 5%	$689.47	3.927%	Margin markup 3: 5%	$935.71	5.000%
Total	$17,556.79		Total	$18,714.29