Cost Code Markup

Cost code markup provides an alternative way of grouping and marking up your materials. Instead of using Ensign's default material categories (lighting, cable management, etc.), you define your own cost codes -- groups of materials that align with your procurement or accounting structure. You then apply markup percentages against these custom groupings on the summary table.

What are cost codes in the markup context?

Cost codes are user-defined groupings that you assign to materials in the database. In the context of markup, they replace the default material category breakdown on the summary table with your own headings. This means you mark up materials according to the categories that matter to your business rather than the software's built-in structure.

Cost codes help you:

• Group materials your way -- for example, all cable types (FP100, FP200, data cable) under a single "Cable" code, all trunking and tray under "Containment", and so on.
• Apply targeted markup -- set different inflation and on-cost percentages for each cost code, just as you would for individual material categories on the standard summary table.
• Track spend by material group -- see accumulated totals for each cost code across the entire project.
• Export grouped totals -- feed cost code totals into external systems such as Sage or Pegasus for procurement and accounting purposes.

Enabling cost code markup

Cost code markup is the default method on the MEP platform -- it is already active when you install MEP. For standalone Electrical, Mechanical, or Ductwork packages, cost code markup needs to be turned on manually.

1. 1

   Go to Tools > System Preferences.

2. 2

   Open the Cost Codes tab.

3. 3

   Ensure Cost Codes is turned on.

4. 4

   Tick Markup job by cost codes. This is the key setting that changes how the summary table displays material markup.

Setting up cost codes

Before you can mark up by cost code, you need cost codes defined in your database and associated with your materials. If you do not yet have cost codes configured, see the dedicated guides in the Cost Codes category for full setup instructions.

Below is a summary of the setup process.

Creating cost code descriptions

1. 1

   Go to Tools > Setup and click the Cost Code button.

2. 2

   Open Cost Code Descriptions. Here you can add, edit, or import your cost codes. Each code has a reference (e.g. EM002) and a description (e.g. "Cable"). The references can follow whatever convention suits your business.

3. 3

   You can build the list directly in the software or prepare it in Excel and import it. The Ensign support team can also provide a pre-made list of cost codes to get you started.

Associating cost codes with materials

There are several ways to link cost codes to your materials:

• By component type -- open the Types menu within the cost code setup screen. Here you can associate entire component types with a cost code. For example, assign FP100 and FP200 cables to your "Cable" cost code, and assign trunking and tray to a "Containment" cost code.
• By manufacturer -- associate all products from a specific manufacturer with a cost code.
• By individual item -- on the takeoff screen, use the cost code dropdown in the far-right column to assign or change a cost code for any individual item. This is useful for one-off adjustments or items that were not automatically assigned during setup.

For detailed instructions on each association method, see:

• Setting up cost code descriptions
• Associating cost codes by type and manufacturer
• Associating cost codes by product

How the summary table changes

Once cost code markup is enabled and your materials are associated, the summary table looks different:

• The upper section of the summary table shows a simplified view with just Site Labour and Materials -- the individual material category breakdown (lighting, cable management, etc.) is no longer displayed. The materials figure is the accumulated total of all material costs.
• A new Cost Code Breakdown tab appears at the top of the summary table, alongside the standard Summary Table tab.

The total materials figure on the summary table and the accumulated total on the cost code breakdown tab will match -- they represent the same costs, just displayed differently.

Applying markup by cost code

1. 1

   Click the Cost Code Breakdown tab at the top of the summary table.

2. 2

   You will see all of your defined cost codes listed with their accumulated material costs. Each code that has materials in the current project appears as a row.

3. 3

   Enter Inflation % for any cost code where you want to adjust the base cost -- for example, if you expect cable prices to rise before the project starts.

4. 4

   Enter On Cost % for each cost code to apply your markup. You can set different percentages for different codes -- for instance, 20% on cable, 30% on containment, 35% on controls, and 25% on lighting.

5. 5

   Return to the Summary Table tab. The totals reflect your cost-code-level markup. The materials on-cost value and sell-out figures update to show the accumulated effect of your per-code percentages.

Labour markup is handled separately. Click into the site labour breakdown (via the tab or the labour row) to set inflation and on-cost percentages for each labour type, just as you would on the standard summary table. If you have multiple labour rates (e.g. standard electrical and out-of-hours), you can give each a different percentage.

Reports

Whichever markup method you use, the results are reflected in your internal reports. Useful reports for reviewing cost code markup include:

• Tender Profit Summary -- shows each section with a breakdown of material cost, material markup, labour cost, labour markup, and any spread prelims or builders discount.
• Section Summary -- similar to the tender profit summary but with a different layout, including columns for shop time, site time, overhead, and profit.
• Estimate Summary -- a labour-material split at cost value.

These reports are accessed from the Select Reports button on the summary table.

For reports that break down totals specifically by cost code (outside of the markup context), see Reporting by cost code.

Next steps

• Cost Codes -- full guides on enabling, setting up, and associating cost codes.
• Section markup -- apply different markup to each section of your project.
• Using the summary table -- review the overall layout and cost-to-sell path.
• Material on-cost percentages -- apply on-cost percentages to individual material categories.
• Overhead and profit -- apply general overhead and profit percentages.
• Builders discount -- apply builders discount as a fraction or percentage.
• Inflation column -- adjust base costs for volatile prices and labour rounding.