User Guide
06.3 · Markup, Margins and Sell Rates

Direct Cost Markups by Resource Type

TX1 lets you apply different markup percentages to different resource types. This is the normal way to handle risk-weighted pricing.

The Five Types

TypeCommon markup rangeLogic
Labour10 – 25 %High management overhead; weather & productivity risk.
Material8 – 15 %Inventory risk, price volatility.
Plant10 – 20 %Breakdown, fuel, operator.
Subcontract5 – 10 %Back-to-back risk with the sub; lower own risk.
Other5 – 15 %Catch-all.

How It's Applied

For each item, TX1 determines the resource type (either from the linked resource or by inspecting breakdowns), then uses the matching percentage:

AllocatedMarkup = BuildUpCost × MarkupPercentage / 100

For items with multi-type breakdowns, TX1 splits the BuildUpCost by component resource type and applies each percentage to its share. Example:

Item total = $10,000

  • Labour portion 40% ($4,000) × 20% = $800
  • Material portion 50% ($5,000) × 10% = $500
  • Plant portion 10% ($1,000) × 15% = $150

AllocatedMarkup = $1,450 on this item.

Absolute (fixed dollar) Markups

Each type also supports an absolute amount:

LabourMarkupAbsolute is added to the percentage result. Total labour markup = percentage × labour portion + absolute.

This is rare but useful for fixed charges per project regardless of cost.

Overhead Markups

Overhead markups apply to the already-allocated overhead portion of each item:

AllocatedOverheadMarkup = AllocatedOverhead × OverheadXxxMarkupPercentage / 100

This is an extra layer — "markup on the overhead recovery" — useful when you want to ensure overhead recovery carries its own margin.

Scenarios

Define alternative markup configurations in Allocation Scenarios (see 06.7) to model competitive bids without committing changes to the base project.

Output Columns on the Sell Rate Grid

ColumnSource
Direct RateItem DirectRate
ApportionedApportionedAmount
Allocated OHAllocatedOverhead
Allocated MarkupAllocatedMarkup
Allocated RiskAllocatedRiskMargin
Allocated CorpAllocatedCorporateOverheadMargin
Allocated ProfitAllocatedProfitMargin
Sell RateCalculatedSellRate
Sell TotalCalculatedSellTotal