Video - InEight Estimate - Bid Pricing Using Billable Rates

TRANSCRIPT

For unit price bid proposals, you typically will build out costs in the cost breakdown structure, add profit in the PBS, and then distribute your target price to pay items in the Pay Item and Proposal Register. But for cost reimbursable or time and expense type projects, it might be necessary to produce a bid proposal based on the billing rates used in the estimate. Billing rates can be applied to both resources and cost items. From the Resource Rate Register, you can see this truck driver is paid a certain amount, time and a half, and double time plus fringes and benefits, which generates my charge rate.

We can also go to the Billing Rate tab and see the same billing rate scales. This is going to be the difference between what it costs me to put the driver in the field and what I can bill the owner for his time. In this case, this driver is marked up 40%, but you can also type a dollar figure in the billing rate or the billing rate markup fields, or change the billing rate markup percentage directly. When I come back into my CBS, I can see my total cost after opening the cost item.

Here, I can see the mobilization total cost based on these resources and if I change to the cost versus billing rate view, I'd see what the work will cost me, as well as how much I may be eligible to bill out for the same work. We can see that difference between our charge rates and our billing rates on the PBS too, by turning on the charge rate and billing rate option. Here we can see the price of our job using the charge rates plus distribution of markup compared to using just straight billing rates. Still on the PBS, note the total charge rate amount for this job.

The total charge rate amount is what's currently being used in the proposal recap to establish the target price for the job. I can also use billing rates to establish the target price for the job and price out pay items accordingly. To do that, let's go to the Job Properties. Notice the balance price options is currently set to Cost Amount.

We'll change that switch to Billing Amount. Did you notice the target price changed and is now based on billing amounts? The final step is to auto price your job. It goes through and re-prices all of our items, and now we have the total current price, which matches our target price.

Well, now you know how to price your bid using billing rates. Thanks for watching.