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Establish Default Estimate Rates

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Click the "Default Rates & Markups" button on the console or select Setup | Default Estimate Rates from the menu bar to open the rates form.

 

Note: There are two choices for markup margins; Cost Plus and Gross Profit. When using the Cost Plus method of markup, the Labor Grade Level section rates entered are normally fully burdened labor rates vs.Gross Profit method of markup where the Labor Grade Level section rates entered are normally unburdened (hourly pay rate). Make sure you have entered your labor rates above according to the markup strategy your company adheres to.

 

Most commercial contractors use the Cost Plus feature with fully burdened labor rates.

 

 

All fields in the Default Estimate Rates form are locked for security purposes. To open this form for editing, click the 'Change Rates' button, which will open a logon screen.

 

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Type your 'Administrator' password within the text box and press 'OK'.

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When the text turns blue, the form is unlocked for editing.

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Within the 'Labor Grade Level' section, enter your hourly labor costs in currency for all Labor Grade Level 1 services.

Labor Grade Level 1 represents the highest skill level (i.e. Journeyman). The Service Estimator Program defaults to this level throughout the estimate.

 

Within the 'Labor Grade Level' section, enter your hourly labor costs in currency for all Labor Grade Level 2 services.

Labor Grade Level 2 usually represents the average apprentice (i.e. third year) and is normally used when estimating programs where lower technical skill level tasking is required to be competitive.

 

Within the 'Vehicle and Miscellaneous' section, enter the applicable rates.

The Service Estimator program provides three methods to recover truck and travel costs; Per Trip Truck Charge, Per Mile Charge & Hourly Truck Charge. Some users will use a flat rate per trip while others will use a combination of hourly and mileage charges. You will only be able to select one option in this section. The unused fields will be grayed out and default to "0".

 

The default value for Available Productive Hours Per Day is set to "8".

We recommend changing this to "6", which is more realistic and widely accepted as the norm in both the U.S. and Canada. This adds a "productivity" multiplier to your overall calculations.

 

Material/Travel Sales Tax will be saved to the database as percentages.

You must enter these numbers as whole numbers. (i.e., enter a 6.5% materials sales tax as 6.5)

 

Labor Sales Tax (when used) will be saved to the database as percentages.

You must enter these numbers as whole numbers. (i.e., enter a 6.5% labor sales tax as 6.5)

 

Within the 'Margins [check one]' section, first select whether your markup margins will be based on 'Costs Plus' or 'Gross Profit' by clicking on the selection button.

Note: (See above) When using the Cost Plus method of markup, the Labor Grade Level section rates entered are normally fully burdened labor rates vs.Gross Profit method of markup where the Labor Grade Level section rates entered are normally unburdened (hourly pay rate). Make sure you have entered your labor rates above according to the markup strategy your company adheres to. Most commercial contractors use the Cost Plus feature with fully burdened labor rates.

 

Enter the markup rates for Labor, Travel, Subcontract/Rentals and Materials.

Markups will be saved to the database as percentages; thus enter the markup rate as a whole number. (i.e., enter 40% labor markup as 40)

 

Within the 'Annual Escalation Rate' section, enter the rate of escalation costs for Years Two through Year Five.

Escalation rates will be saved to the database as percentages; thus enter escalation rates as whole numbers. (i.e., enter 3% escalation rate as 3)

 

After entering all rates, click 'Save' to save the default rates to the database, or 'Cancel' to exit the Program

 

All fields within the Default Estimate Rates screen are required. You will not be allowed to proceed unless values are assigned to all fields. Users should enter a "0" in those fields that are not applicable. You may get an error message if you try to enter text in any of these fields instead of numbers.