Pricing Modes Explained
ItemPricingMode controls how an item behaves in the sell-rate pipeline. Every direct cost item has one mode (Standard by default). Overheads ignore this control — they have their own flow.
The Six Modes
| Mode | Contributes to pool? | Receives allocation? | Shown on client report? |
|---|---|---|---|
| Standard (0) | Yes | Yes | Yes |
| DirectRateOnly (1) | No | No | Yes — pass-through at direct rate |
| SellRateProportional (2) | No | Yes (proportional factor) | Yes |
| SellRateProjectPercentage (3) | No | Yes (project-level flat %) | Yes |
| NotContributing (4) | No | No | No — hidden from submission |
| RateOnly (5) | Yes (kind of) | Stored but blank on total | Yes — rate shown, total blank |
Standard
The default. The item contributes its BuildUpCost to the pool that markup/overhead is distributed against, and receives its proportional share back as its own allocations.
DirectRateOnly
Pass-through. No markup or margin applied. Useful for cost-plus items, client-supplied materials, or any "no markup" lines.
SellRateProportional
The item does not contribute to the pool, but is still charged the project's average markup factor. Useful when you want the item to look like it carries markup on the sell rate report but you don't want it to influence how much markup the other items absorb.
SellRateProjectPercentage
Similar to proportional, but applies the project's flat markup percentages directly (per resource type) rather than computing a proportional share.
NotContributing
Completely silent on client reports — the row exists for internal costing only (e.g. unbilled admin, QA, tooling). IsHiddenFromSubmission = true.
RateOnly
Useful for schedule of rates tenders. The rate is displayed and priced (markup-adjusted average applied), but the Total column is blank because the quantity is unknown at tender time.
How the Pool Works
TX1 builds a "pool" — the sum of every item's BuildUpCost. It then distributes the overhead / markup / margin pools across contributing items proportionally:
Item allocation = (Item.BuildUpCost / Pool.Total) × Pool.ValueStandard items are the only ones that both contribute AND receive a share. The other modes carve out deliberate exceptions.
Changing Mode Mid-Project
Changing an item from Standard to NotContributing reduces the pool (the other items now share a smaller numerator). TX1 re-runs allocation automatically — but you may want to review markup targets after any mass change.
Visual Cues
Pricing mode is shown as a small badge on the row. Hover for full name.