Before an estimate can be considered complete, a margin may need to be applied to the project.

 

Mark-up can be applied using any of the following methods; -

  • Pegging the Selling Rate - on an 'item-by-item' basis
  • Bulk Change - apply Added Money to selected items
  • Group Mark-up Policy - adjust the % markup on Cost Types by Cost Group
  • Project Mark-up - enter Total Margin or Revenue to globally change all Selling Rates


Pegged Rates

Mark-up can be applied to individual items and the price of that item fixed. This method is termed ‘Pegging’ an item value.

 

To peg the item rate you need to select the item in the Tree View then select the Pricing tab.


There is a row of information displayed on the Pricing tab, this information contains the following;-

  • Revert to Calculated/Peg at Displayed Value button
  • Gross Rate (editable field)
  • Margin % (editable field)
  • Markup/Margin Rate (editable field)


 

Type the Gross Rate, Markup % or Markup/Margin Rate, then click the 'Peg at displayed Values'.



To view the Net Value, Marked Up Value, Additional Loading Value, Margin & Final Revenue, select the 'Summary' tab.


  

Each of the Rate or Margin fields can be edited and will affect the values displayed in the other fields. In the example above, setting the margin to 25% has resulted in a Selling Rate of £2.50 with a total margin for this item of £0.50 (The total revenue and margin being displayed in the Summary table).

 

Once the required margin for the item has been set, the 'Peg at displayed Values' button can be selected.  

Pegging a number of items at a specified margin can be achieved using the Bulk Change facility.


Pegging selected items at a specified margin is fine for predetermining margins for a few items. However, running through the whole BoQ to perform this exercise is not quite so practical, so the preferred alternative is to allow Valesco to add the required margins across the whole of the estimate.

 

There are two ways that Valesco can add a margin to an estimate:


  • Apply a mark up to all or selected Cost Groups within the job.  
    This method is called a Group Mark-up Policy.

  • Apply a global Mark-up to pegged and/or un-pegged items in the job.  
    This method is called Project Mark-up.