Builders Discount

Builders discount (also called main contractor's discount) is applied after the overhead and profit have been calculated. It reduces the net contract cost by a specified amount. The software supports entry as either a fraction or a standard percentage.

Entering builders discount as a fraction

By default, the builders discount is entered as a fraction (e.g. 1/39th). You type the denominator into the field -- for example, entering 39 applies a discount of 1/39th. The field displays as "1/" followed by the number you enter, so you will see something like "1/39" on screen.

1. 1

   On the summary table, locate the Builders Discount field in the Markup & Profit section, below the profit percentage.

2. 2

   Enter the denominator of the fraction. For example, type 39 to apply a discount of 1/39th.

3. 3

   The discount is calculated on the net contract cost (after overhead and profit). The result appears in the Totals panel under Builders Discount, and the net contract cost adjusts accordingly.

Switching to percentage entry

If you prefer to enter the builders discount as a standard percentage rather than a fraction:

1. 1

   Go to Tools > System Preferences.

2. 2

   Navigate to the Miscellaneous tab (usually the second tab).

3. 3

   Tick the option Enter builders discount as a percentage (found in the bottom-left area of the screen).

4. 4

   The builders discount field on the summary table now accepts a standard percentage value. For example, you can type 2.56 to apply a 2.56% discount.

Presetting builders discount as a default

You can preset a builders discount value so it is automatically filled in on every new project:

1. 1

   From the home screen, go to Tools > Miscellaneous File.

2. 2

   Locate the Builders Discount field and enter your standard value (as a fraction denominator or percentage, depending on your system preference).

3. 3

   Press Exit to save. All new projects will now have this builders discount pre-filled.

You can still overtype the value on any individual project without affecting the default.

How builders discount fits into the cost-to-sell path

Builders discount sits between the profit and the net contract cost in the totals breakdown:

1. Project cost -- the accumulated cost of materials and labour.
2. General overhead -- company overhead applied to the cost.
3. Profit -- profit percentage applied on top of the overhead.
4. Builders discount -- the discount is deducted at this point.
5. Net contract cost -- the result after discount.
6. Preliminaries, prime costs, and provisional sums -- added on top of the net contract cost.
7. Gross contract cost -- the final tender figure.

Next steps

• Inflation column -- adjust base costs for volatile prices and labour rounding.
• Overhead and profit -- apply general overhead and profit percentages.
• Gross profit indicator and targets -- use the gross profit indicator and set target sell-out values.
• Presetting default markup -- preset overhead, profit, and builders discount defaults.