A company that will quote a project is attempting to define the price for a client and deliver a document that will enable them to secure the project. That price in many cases is derived by identifying cost items (NSI or Stock Items) in both lump sum or detail and applying mark ups to get to a price. The marks ups need to be flexible to allow for variability required by customer and support both detail display of data in forms and reporting. Most contractors categorize marks ups as above the line (ATL) or below the line (BTL) where the line represents the price provided to the customer. This segregation allows firms to adhere to client billing requirements.
In an above the line scenario a quote will look at a line item where we have added an item and add a markup % or dollar (i.e. NSI for electrical controller with a $50 cost with a built-in mark-up of 20% for a price of $60). On the line we also may add an additional markup that is more generic (i.e. mark up based on account group such as a 10% mark up on material costs within the line) and a line total which give us the price for the line with the material cost + the item markup + the account group mark up.
In the (BTL) scenarios we are building mark-ups that will allow a mark up to be its own line item or to be buried back into the above the line items. In this scenario we could find a markup for Profit and Overhead. They could be 10% each and would show on the quote as a line below the price generated in the detail grid. As an example, it could be for Overhead and Profit. Both markups are calculated on their own and finally a down total for the price plus the mark ups. The revenue would accumulate to the appropriate revenue task(s). We could see these BTL accumulate where the price plus the first mark up is the basis for the next markup calculations. We might also allocate a BTL mark up back into the ATL items (i.e. a BTL mark up for Labor of 10% will calculate 10% on the total of all line items with labor and then allocate the mark up back into the line items based on the line item % of the total. This could be done by Item, AG or Task).
When firms are generating this quote, they may be required to deliver it in a format dictated by the client. In that scenario the quote needs to have a Bid Items sort code where we can aggregate a quote including mark ups into a schedule based not on the item/AG, Project String but on a new item called Bid Item. The bid item is quite specific and not something that is defined by industry or customer or type of work.
On the day that a quote is submitted a contractor may review multiple bids from vendors and will want to enter each vendor bid into the project quote entering the amount and vendor ID. That data helps us determine how to roll up vendor prices into our detail grid.
It would be nice to have a detail tab where we can put a long description of the work being performed and not just the notes on the header and line.
When the PQ is ready to establish a project it would be nice to see some sort of pre approval representation that showed what details would be displayed in the Revenue Tab and Cost Tab on the Project.
Some firms like to product the quote for both revenue and cost but when they send to the project they want to send only the cost tab information. They might negotiate the billing structure after the project is warded. Maybe an ability to send only the cost dialog box?