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Terminology Used in BidPro Software
Burden Rate % Rate applied to Raw Labor Cost for company provided benefits. A worker paid at $15.00/hour (raw) would actually cost the company $19.50/hour based on a 30% burdened labor rate. Using that same scenario, the sell price per hour for this worker would be $31.20 based on a 60% Labor Markup %. This would yield an $11.70 profit for each hour that equates to a 37.5% Gross Profit Margin (GPM)
Cents per Mile Usually defined by tax-board values (current rate per mile)
Contract Average Burdened Labor Rate/hour Total project burdened labor cost divided by the total labor hours to obtain and average project rate for employees with benefits.
Contract Average Raw Labor Rate/hour Total project labor cost divided by the total labor hours to obtain and average project labor rate.
Contract Average Raw Labor Rate/hour Total project labor cost divided by the total labor hours to obtain and average project labor rate.
Direct Job Overhead %
DJO is and ongoing administrative business expense which cannot be attributed to any specific business activity or job, but is still necessary for the job function. DJO is the rate applied to Raw Labor Rate for management/overhead related activities. Some companies have set this value (higher) to achieve a "net" profit versus a "gross" profit.
Freight % Calculates percentage of total material cost and is attributed to material freight/delivery charges anticipated on the project. (average 5%)
Gross Profit Project sell price minus project costs (in dollars).
Gross Profit Margin (GPM) A good starting point for product/service pricing. Project sell price minus project costs divided by project sell price times 100 (in percent). Higher percentage is better.
Labor Hours Total labor hours to accomplish the project. All labor grades.
Labor Markup % Rate applied to labor costs. Yields the Labor Sell Price.
License/Permit Permit costs and license fees will apply to this project.
Location Labor Sales Tax % Some states require tax on labor sell price. Varies state-to-state.
Location Material Sales Tax % Usually tax rate is calculated where material is installed. Varies state-to-state.
Material Markup % Rate applied to material costs. Yields the Material Sell Price.
Mileage Can worker/technician claim mileage expenses for this project? Calculate round-trip mileage at "Cents-per-mile" rate.
Misc. Material Calculates percentage of total material cost and is attributed to intrinsic or incidental items (hangers, brushes, tape, buckets, extra mounting hardware etc.).
Net Income Same as Net Profit, used to calculate income tax owed. Gross Income minus incurred expenses.
Net Profit Same as Net Income, used to calculate income tax owed. Gross Income minus incurred expenses.
Non-Productive Time (hours/day) NPT is the hours not available per day (and per person) for planned task activity. These hours are converted to cost/hour for each worker/technician on the job.
Paid Parking Will project have parking expenses? Some downtown locations could be $15-$25 per day. Note: some vans do not fit in underground structures and will need to be parked on the street or public-paid lot. Parking $ Cost/Day/Crew Member Daily rate for parking. Note: on a 6 month or yearlong project, these charges could be very large.
Pay Sub Tax "Upfront" as Cost ? Allows company to pay all applicable subcontractor taxes upfront and signifies to BidPro that those taxes are considered costs to marked-up via the subcontractor labor and/or material rate. Varies state-to-state.
Per Diem Will project have overnight stay requirement? Per Diem Amount paid to worker/technician for 1+ overnight stay (usually for room & board). Varies state-to-state.
Preburdened Labor Rate

Average labor rate of all project employees based on raw labor rate and number of hours worked. This is useful in determining how each person will affect project costs and most importantly company profits of add-on or follow-on work.

Example 1: 2 workers for 1 hour (worker 1 paid $15/hr raw and worker 2-$30/hr raw): average preburdened labor rate would be $22.50.

Example 2: worker 1 ($15/hr raw) worked 123 hours and worker 2 ($30/hr) worked 78.5 hours. The preburdened labor rate would be $20.84.

Premium Time Weekend or Union Pay. Adds the percentage to raw cost and is value is displayed on Summary and Margin Sheets. Premium Time Differential (per/hour) Rate per hour added to each hour a person works on the job. Adds the percentage to raw cost and the value is displayed on Summary and Margin Sheets. Premium Time Rate Rate applied to Raw Labor Cost for Union Labor or weekend/special rates.
Prevailing Wage Usually state related jobs dictate wage amounts based on time-in grade and type of classification. Prevailing Wage Rate per hour added to each hour a person works on the job.
Raw Labor Cost Total labor cost paid to technicians/workers (before any company expenses, 401K, Health Benefits etc.). Usually labor rate per hour quoted @ hire date or after raises to base rate.
Return on Investment (ROI) An accounting valuation method, Net Income divided by the Book value of Assets. Used in these programs as a performance measurement. Equation is Sell Price minus Cost divided by the Cost.
Site Survey Completed ? Yes indicates PM or estimator has been to the site for evaluation. No - may indicate best guess ??? on material and labor.

Subcontractor Location Labor Tax %

Allows company to specify how tax rate is treated on project. Varies state-to-state.
Subcontractor Markup % (average 15%) Industry average markup on subcontractor costs are 15%. Tax on Material (M) or Labor & Mat (LM) Tax will be calculated for material (M), labor (L) or both (LM).
Bid Raw $ Raw Labor Rate/hour Raw rate is the rate of pay to the technician prior to company expenses, 401K, Health Benefits, etc.
WBS Work Breakdown Structure General term for Employee Classification that will perform the task.

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