01.5 · Core Concepts

Cost Flow: Resources → Items → Sell Rate

This page ties the whole pipeline together in one diagram. Everything else in TX1 is an optimisation, override or reporting view on top of it.

The Full Pipeline

       ┌──────────────────────┐
       │  Resource            │   BaseRate × AppliedFactor
       │  (Labour / Material) │ = EffectiveBaseRate
       └─────────┬────────────┘
                 │  (optional) + MarkupPercentage %
                 ▼
       ┌──────────────────────┐
       │  Resource.SellRate   │   if used on its own
       └─────────┬────────────┘
                 │
                 │  (used by)
                 ▼
  ┌───────────────────────────────┐
  │ Direct Cost Item              │  Qty × ResourceRate
  │   - may contain Breakdowns ──┼→ Sum of breakdown Totals
  │   - may have Children  ──────┼→ TotalWithChildren
  └─────────┬─────────────────────┘
            │
            │  + Apportionment from hidden items
            ▼
   DirectTotal + ApportionedAmount = BuildUpCost
            │
            │  Allocation of pools:
            │   + AllocatedOverhead
            │   + AllocatedMarkup  (per resource type %)
            │   + AllocatedRiskMargin
            │   + AllocatedCorporateOverheadMargin
            │   + AllocatedProfitMargin
            ▼
  ┌───────────────────────────────┐
  │  Sell Total (per line)        │  BuildUpCost + TotalAllocated
  │  Sell Rate  = SellTotal / Qty │
  └───────────────────────────────┘

Where Each Number Comes From

Result	Formula	Source object
`EffectiveBaseRate`	`BaseRate × AppliedFactor`	Resource
`SellRate (resource)`	`EffectiveBaseRate × (1 + MarkupPct/100)`	Resource
`DirectTotal (item)`	`Quantity × ResourceRate` or Σ breakdown totals	DirectCostItem
`DirectRate (item)`	`DirectTotal / Quantity` (if Qty ≠ 0)	DirectCostItem
`BuildUpCost`	`DirectTotal + ApportionedAmount`	DirectCostItem
`TotalAllocated`	Σ(Overhead + Markup + Risk + Corp + Profit)	DirectCostItem
`CalculatedSellRate`	`DirectRate + (TotalAllocated / Quantity)`	DirectCostItem
`CalculatedSellTotal`	`DirectTotal + TotalAllocated`	DirectCostItem
`MultiplicationFactor`	`CalculatedSellRate / DirectRate`	DirectCostItem

Example

Say you estimate 100 m³ of concrete at $180/m³ (a resource rate), and the project carries:

25% direct markup on materials.
$50,000 of apportioned overheads distributed proportionally across all items.
8% risk, 5% corporate, 12% profit.

For this item only:

DirectTotal = 100 × 180 = $18,000
Suppose apportioned overheads give $1,200 → BuildUpCost = $19,200.
AllocatedMarkup (25% on material portion) = 0.25 × 18,000 = $4,500.
Apply risk + corp + profit on the new subtotal: ≈ $6,720.
CalculatedSellTotal ≈ $30,420.
CalculatedSellRate = 30,420 / 100 = $304.20/m³.
MultiplicationFactor = 304.20 / 180 = 1.69.

Everything else you will read in this guide sits behind, inside or around this pipeline.