How do Default Rates work?

You can set some Owner Contract Defaults and Bidding Markup Rates from the Accounting Menu

To Establish your Default Rates click on Accounting in the top Toolbar

Click on Default Rates on the left hand menu

Default Rates

Contract Defaults

Contract Defaults will set some values in the Owner Contracts you write during the Pending phase.

Owner Contract defaults

All sites have a Generic Owner Contract that will use these rates.

NOTE: If you have a current AIA or Consensus Docs license on file, it will set these rates in these Owner Contracts

Updating the following values (if applicable to the selected Owner Contract) will be reflected on all projects going forward. These can always be adjusted in an individual project if it will differ.

  • Work Retainage
  • Material Retainage
  • Architect Receive Payment Day
  • Owner Make Payment Day
  • Owner Make Payment Month
  • Owner Payment Days for late Bill

Markups (Rates in % Form)

The Markups in Default Rates will allow you to set certain item rates so that they show these values in all projects.

Markup Rates

Markup Defaults in Bidding

Sale Tax Rate – This rate will automatically apply to all .M (Material) and .EQ (Equipment) expense types in a Project. You can select to apply it to the other expense types as desired by checking or unchecking those boxes in the Project Markups Tab.

Labor Burden Rate – Labor Burden Rates will apply to only .L (Labor) expenses. These codes are for self-performed work, or GC labor only. These .L codes are also tied to the Time cards feature in RedTeam Go.

General Liability Rate – General Liability Percent will be applied to all codes and will calculate into the GC General Costs Line on the Estimate Worksheet.

NOTE: In Bidding phase, the the above rates will show as defaults, but can be changed on a by project basis by clicking Actions>Set Default Rates from the Estimate Worksheet. Overhead and Profit must be set from within the Set Markups tab in Bidding for each Pro.

Markup in Bidding

Markups Defaults In Progress

When a project is In Progress, the Labor Burden, Sales Tax and General Liability Markups from Accounting Defaults will carry over to Request for Pricing (RFPs) and Change Order (COs) line item calculations.

Additionally, the Overhead and Profit percentages from Accounting Defaults will apply to RFPS and COs.

Example in Change Orders

Markups in Change orders

IMPORTANT: Make sure to use the same percent (%) for both RFP Overhead to Change Orders Overhead. If they are different, it may cause complications when an RFP is Approved and pulled into a Change Order if the % are not the same. Also true for RFP Profit and CO Profit.