The inflation column allows you to adjust the base cost of specific categories before any markup is applied. This is not a profit increase -- it reflects your belief that the actual cost will be higher than what the software has calculated. Any adjustment you make in the inflation column is treated by the software as a genuine cost change. Reports will show the higher cost rather than additional profit.
The inflation column appears in the upper category grid of the summary table, next to the net cost columns. Each material category and the site labour line has its own inflation percentage field.
When to use inflation
Inflation is useful in several common scenarios.
Volatile material prices
If you are tendering now but the project will not start for several months, certain material prices (such as cable or copper) may rise before you begin work. Adding inflation to those categories protects you against price increases.
For example, if you expect cable prices to increase by 15% before the project starts, enter 15 in the inflation field for cable. The cost changes from 571 to 657, and all subsequent markup is calculated on the higher figure.
Rounding up labour days
If your project uses a single (fixed) labour rate and the software calculates 15.94 days, you might believe the project will actually take 20 days. Overtyping the days figure on the summary table pushes the extra cost into the inflation column automatically. This is treated as a cost adjustment, not a profit increase. The software recalculates the labour cost from 2,773 to 3,480 (approximately 25.5% inflation) to reflect the additional time.
When you overtype the days on the summary table, you are telling the software what you believe the true cost will be. The inflation column reflects this adjustment and ensures all subsequent markup (on-cost percentages, overhead, and profit) is calculated on the corrected figure.
General cost uncertainty
If you feel a project is a bit light overall, you can add a small inflation percentage to the relevant categories to build in a buffer. Because this is treated as a cost change rather than profit, it adjusts the base figure that all your markup is calculated on.
Applying inflation
- 1
On the summary table, locate the Inflation % column in the upper category grid.
- 2
Enter a percentage for any category you want to adjust. For example, enter
15on cable to increase the cable cost by 15%. - 3
The After Inflation column updates to show the new base cost. All subsequent markup (on-cost percentages, general overhead, and profit) is calculated on this adjusted figure.
Inflation adjustments are treated as cost changes, not profit. Reports will reflect the higher cost rather than showing additional profit. Use inflation when you genuinely expect prices to be higher, and use on-cost percentages or overhead/profit for your margin.
Inflation with multiple labour rates
If your project uses multiple labour rates (for example, standard hours and out-of-hours work), you cannot overtype the total days on the main summary table. Instead, use the inflation percentage on the site labour line to adjust the cost upward. You will not see the adjustment reflected as additional time, but the cost will increase by the percentage you enter.
To access the per-rate inflation fields, click the Site Labour tab along the top of the summary table (this tab only appears if your project contains multiple labour types). Each labour rate has its own inflation percentage field, so you can apply different inflation amounts to different labour types.
Even when you cannot overtype days directly, inflation on the site labour line is an effective way to allow for the project being slightly more labour-intensive than the calculated figure suggests. If you think the project needs an extra 15% of labour cost to be safe, enter 15 in the inflation field.
Inflation with cost code markup
If your system uses cost code markup, the inflation column is available on the Cost Code Breakdown tab. You can apply inflation to individual cost codes just as you would to individual material categories on the standard summary table. This lets you adjust the base cost of specific material groups (e.g. cable, containment, controls) before applying your per-code on-cost percentages.
Next steps
- Material on-cost percentages -- apply on-cost percentages to individual material categories.
- Labour selling rate -- adjust the labour selling rate and mark up multiple labour types.
- Overhead and profit -- apply general overhead and profit percentages.
- Builders discount -- apply builders discount as a fraction or percentage.