User Guide
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06.5 · Markup, Margins and Sell Rates

Sell Rate Calculation

The single formula that everything above ends at. Memorise this — the rest of the system is plumbing to produce the inputs.

Per-Item Formula

BuildUpCost            = DirectTotal + ApportionedAmount

TotalAllocated         = AllocatedOverhead
                       + AllocatedMarkup
                       + AllocatedRiskMargin
                       + AllocatedCorporateOverheadMargin
                       + AllocatedProfitMargin

CalculatedSellTotal    = DirectTotal + TotalAllocated
CalculatedSellRate     = CalculatedSellTotal / Quantity      (if Qty ≠ 0)

MultiplicationFactor   = CalculatedSellRate / DirectRate

Sanity Checks

  • MultiplicationFactor is the "big picture" number commercial managers look at. Typical range 1.25 – 1.80 on general construction, higher on labour-heavy works.
  • If an item's factor looks wildly out of range, check its BuildUpCost — a hidden apportionment may be inflating it.

End-to-End Example

Item: "Concrete Slab" — 100 m³, linked to resource "Concrete 25MPa" @ $180/m³.

StepValue
DirectTotal100 × 180 = $18,000
ApportionedAmount (hidden OH spread)$1,200
BuildUpCost$19,200
Share of project pool6.4%
AllocatedOverhead (pool $50k × 6.4%)$3,200
AllocatedMarkup (10% material markup on $19,200)$1,920
AllocatedRiskMargin (5% on cost+markup $25,120)$1,256
AllocatedCorporateOverheadMargin (4%)$1,005
AllocatedProfitMargin (10%)$2,512
TotalAllocated$9,893
CalculatedSellTotal18,000 + 9,893 = $27,893
CalculatedSellRate27,893 / 100 = $278.93 / m³
MultiplicationFactor278.93 / 180 = 1.55

Whole-Project Totals

Sum every item's CalculatedSellTotal. That is the project's Total Sell Value. Dashboard KPIs derive:

  • TotalSellValue — sum of CalculatedSellTotal across items.
  • ProjectedMargin = TotalSellValue − (DirectTotal + OverheadTotal).
  • MarginPercentage = ProjectedMargin / TotalSellValue.

When Sell Rates Don't Update

If the yellow Recalculate banner is showing, markup or margin settings have changed. Click Recalculate or use Markup → Distribute Proportionally to push the new pools to every item.

Per-Item Manual Edits

Each allocation column is editable. Manual edits set IsManuallyEdited = true and are preserved across normal recalculations. Use Reset Overrides to wipe them.