A project's success requires effectively managing change during a project. Change management is designed to help you track the change process more accurately. You can also manage overhead and profit by using markup in change documents.
Markup enables you to add overhead, profit, or any other markup categories you create to change documents. It automates overhead and profit calculations in Change Management.
You can set default values or percentages for overhead, profit, and other markup categories by using the Markup section of the contract or Purchase Order against which the change is written. The default values are then used for all markup calculations for changes to that contract or Purchase Order.
You can set different markup values for individual contracts and Purchase Orders. When applying overhead, you may need to change the percentage in certain situations. You can have different markup values based on total labor, material, and equipment costs. You can apply markup to your budgeted costs or direct costs, as well as to the total committed costs.
Markup provides you with a comprehensive method for managing changes from the initial estimate to the final approval, including reporting to compare the total of initial change costs plus the total markup for changes and the combined costs for changes. There is a printable form for Proposals and change documents with markups.
Set default markup values for overhead, profit, and other markup categories that you create. The default values are used in all markup calculations. Typically you will collect all Proposals from committed parties, roll the costs and codes of each document to create a change document to the customer or owner of a project. You can add overhead and profit (markup) prior to submitting that change document.
Set separate markup values for different contracts and Purchase Orders. When applying overhead, you may need to change the percentage. You can apply markup to your budgeted costs and committed direct costs.
Have different markup values based on total labor, material, and equipment costs.
Set default values for overhead and profit, but you can also add additional markup values for each document.
Assign markup categories using a percentage rate or a flat amount with both types.
Set markup values at the contract or Purchase Order level, similar to requisitions.
Specify the target cost code to which you want to apply the markup amount.
Set the order in which markup categories are applied.
Specify a source cost code, which enables you to break down costs into individual components.
Markup gives you a comprehensive method for managing changes from the initial estimate to the final approval, including reporting to compare the total of initial change costs plus the total markup for changes and the combined costs for changes. There is a new form for Proposal and change documents with markups, which you can print.
The Project Settings dialog box Markup section contains markup fields in which you can enter a description, percent, or fixed markup amount. The target cost code column is a drop-down of all cost codes.
When adding a new contract or PO, you can click the Get Markup button to get the markup defaults from the Project Settings dialog box and store them in the Contract document window Markup for Changes section or the Purchase Order document window Markup for Changes section. You can then modify the markup defaults on a per contract or Purchase Order basis.
If you use Change Management, you can generate a Budgeted change from the existing changes in the Change Management document window Budget section. You can add the markup to the commitments changes, and produce a budgeted change for that total.
If you do not use Change Management, you can apply markup to individual Change Orders or Proposals.
For more information about markup, see the following topics: