Margin percentage markup for resources in estimate and work items

We've added a new Margin Percentage option for estimate and work items that gives you more flexibility and control over how sell rates are calculated.

Key benefits

• Ensures that the sell price is always aligned with your target margin.

• Removes the guesswork of converting margin goals into markup percentages.

• Offers flexibility as you have the option to select between multiple markup methods, including Margin Percentage, depending on your project's needs.

Details

The Margin Percentage option allows you to define a desired profit margin instead of applying a markup on cost. Sage Construction Management will automatically calculate the sell price to ensure the specified margin is achieved. The sell rate is calculated as follows:

sell rate = cost rate / (1 - margin)

For example:

• Percentage markup: If the cost is $100 and you add 20% markup, the sell price is $120.

• Margin percentage: If the cost is $100 and you want a 20% margin, the sell price is $125 because sell rate = $100 / (1 - 20/100) = $125.

This option is available in the following locations:

• When editing an estimate item, the option is available in the Sell Markup dropdown on the Item Details page.

• In the Items tab of an estimate, the option is available in the bulk actions dialog when you select to change resource markups.

• When editing a work item in the cost database, the option is available in the Sell Markup dropdown under the Rates Per Resource Units (M / L / E / S / O) section.

How it works

Update the markup for estimate items or work items imported in estimates

1. Go to Leads or Projects and select the lead or project in the Quick Select section.

2. Select Estimates in the Preconstruction section.

3. Select the appropriate estimate number or title from the list.
4. Select View Estimate.
5. Within the estimate, select the Items tab.
6. Select Manually Entered Items or Work Items in the Special Filter dropdown.
7. Select the edit icon next to the estimate item that needs to be updated.
8. Select Margin Percentage in the Sell Markup dropdown next to the relevant resource and enter the value in the available field.

   

9. Select Save & Close.

Apply margin percentage markup to multiple items within an estimate

1. Go to Leads or Projects and select the lead or project in the Quick Select section.

2. Select Estimates in the Preconstruction section.

3. Select the appropriate estimate number or title from the list.
4. Select View Estimate.
5. Within the estimate, select the Items tab.
6. Select Manually Entered Items or Work Items in the Special Filter dropdown.
7. Select the items from the list and select Choose Bulk Action.
8. In the dialog, do the following:
   1. Select Change Resource Markups in the Action dropdown.
   2. For each resource, select % Margin in the Change Type dropdown and specify the percentage in the available field.

      

       
   3. Select Apply Changes.

Add margin percentage markup to work items in the cost database

1. Go to Cost DB.

2. Select the total record count number next to the Work Items.
3. Select the appropriate work item from the list.
4. Select Edit.
5. In the Rates Per Resource Units (M / L / E / S / O) section, select Margin Percentage in the Sell Markup dropdown and specify the percentage in the available field.

   

6. Select Save & Close.