Estimate Options - Estimate Properties - Bid Pricing - Profit Settings

Define the calculation methods for profit within the current estimate, enabling project-specific control over how profit margins are generated and applied to the bid.

To navigate to this page of the dialog, select the Edit & Tools command tab and select Options > Estimate Options. Then select Estimate Properties> Bid Pricing > Profit Settings.

The Estimate Options version of the Estimate Properties, Bid Pricing, Profit Settings page allows you to set the manner in which overhead will calculate in your current estimate.

Profit may be calculated in the following ways:

  • By entering a dollar value — This option allows you to enter a dollar value that represents the total profit for the current estimate. This value is entered on the Bid Pricing Strategy tab in the current estimate.
  • By entering a dollar value per Man Hour — This option allows you to enter a dollar value which is multiplied by the total number of Man Hours in the estimate block to determine the total Profit for the estimate block. This value is entered on the Bid Pricing Strategy tab in the current estimate.
  • By entering a dollar value per Crew Day — This option allows you to enter a dollar value which is multiplied by the total number of Crew Days in the estimate block to determine the total Profit for the estimate block. This value is entered on the Bid Pricing Strategy tab in the current estimate.
  • As a percentage of total price — This option tells B2W Estimate to calculate the profit for your current estimate as a percentage of its total bid price. This percentage is entered on the Bid Pricing Strategy tab in the current estimate.
  • As a percentage of total bid price less subcontracted cost — This option tells B2W Estimate to calculate the profit for your current estimate as a percentage of its total bid price, minus subcontracted costs. This percentage is entered on the Bid Pricing Strategy tab in the current estimate.
  • As a percentage of total bid price less bid-level taxes — This option allows you to have B2W Estimate calculate profit for your new estimates as a percentage of total bid price, minus the estimate's bid-level taxes.
  • As a percentage of total bid price less bid-level taxes and subcontracted cost — This option allows you to have B2W Estimate calculate profit for your new estimates as a percentage of total bid price, minus the estimate's subcontracted costs, and minus the estimate's bid-level taxes.
  • As a percentage of total overall cost — This option tells B2W Estimate to calculate the profit for your current estimate as a percentage of its total overall cost (direct cost + indirect cost + bond cost). This percentage is entered on the Bid Pricing Strategy tab in the current estimate.
  • As a percentage of direct cost, indirect cost, bond, and overhead — This option tells B2W Estimate to base the overhead calculation for your current estimate on unique percentages that apply individually to your estimate's direct, indirect, bond, and overhead values. These percentages are entered on the Bid Pricing Strategy tab in the current estimate.

To achieve an even finer level of detail, place a checkmark next to one or more of the following options:

Break down direct cost by cost category

Place a checkmark here to specify unique percentages that will calculate profit on individual direct cost categories, such as labor, equipment, or materials. If you have selected this option, you may use the Edit Category Breakdown button to indicate how general or specific your list of cost categories should be.

Break down indirect cost by cost category

This allows you to enter further unique percentages for individual indirect cost categories, such as indirect labor, indirect equipment, or indirect materials. If you have selected this option, you may use the Edit Category Breakdown button to indicate how general or specific your list of cost categories should be.

The method for calculating indirect costs within your current estimate must be set to By detailing the cost using indirect items for this option to be available.

Allow multi-level entry of percentages in estimate by

Placing a checkmark here allows you to enter unique percentages for individual phases, alternate groups, or work types. For a simple example, pay items that have an "asphalt paving" work type could be set to calculate 10% profit, while items in the "sitework" work type could be set to generate only 5% profit.

These group specfic percentages are entered on the Bid Pricing Strategy tab in the current estimate.

The settings on any page in Estimate Options reflect the properties or dictate the behavior of the current estimate only. Your global settings, that set the default properties and behavior of all new estimates you create, are stored on the corresponding page in the Options dialog.

Learn more about how Estimate Options differs from the Options dialog