Price the Issue
Use Case
As the superintendent corresponds with the client and gets more information, he details out the estimated pricing for the issue, in preparation for it becoming a change order.
In InEight Change, you can add pricing to the issue either using estimated costs on existing cost items or by adding new cost items. You can indicate which cost items are vendor-related, and you can add multiple levels of markup for overhead and profit as needed.
You have several options for how to price issues, depending on your internal processes for handling change order work.
The sections below provide more detail for each option.
Price the Issue from Current Estimate
In Control, you may have already added Current Estimate pricing as shown in the previous section –Update Current Estimate Values for Forecasting. This includes adding estimated quantities and costs for new cost items specifically created for addressing the current issue, as well as existing cost items from your original budget that require slight modifications to accommodate additional work.
The steps below assume that pricing was already defined for a cost item in InEight Control that you now want to include as pricing for the issue in InEight Change.
Step 4
Assign cost pricing to the cost item(s).
You can do this using Group item pricing or just by clicking in the Cost pricing field.
Step 6
To bring in the current estimate values for your cost item(s) from InEight Control, select the cost item(s) and select the Auto-calculate icon.
Price the Issue from New Cost Item
You may have the need to add a new cost item that doesn’t yet exist in InEight Control to price out your issue.
Scenario: Your company wants change orders completely separate from the original costs and they don’t want any information showing up in Control until the change is approved.
For scenarios like this, you can price the issue in InEight Change, using new cost items.
Step 1
From Change > issue record > Pricing tab > Cost item pricing, select Add > Add new cost item.
Price the Issue Using Vendor Cost Item
As you price your issue, some of the work may be handled by a vendor via a vendor change order. You can add vendor-related cost items to your issue, and then either tie it to a new VCO or to an existing VCO if it already exists.
Step 1
From Change > issue record > Pricing tab > Cost item pricing, select Add to add either a new or existing cost item.
Step 2
For the selected or created cost item, select the Cost pricing category of Vendor.
Select Add.
Step 3
Add pricing to the cost item either by adjusting the CB Qty using Auto calculate or by manually adjusting the cost.
Step 6
From the Pricing Summary tab, click Edit vendor and pricing information for the associated contract.
Step 7
On the resulting slide-out, select the pricing item, then select Associate to Vendor Change order.
View As-builts In Change
When estimating pricing for your issue, you may need visibility into what actual work has been done on the related cost items.
Scenario 1: A cost item is already in the works ahead of client approval and you want to check the work completed to date for which you can request a client change order.
Scenario 2: You need insight into how work is progressing on a cost item to better understand what is needed for your issue.
You can access this information from the issue’s Actions menu, without needing to go to InEight Control.
Selecting Actions > View as built totals summary gives you a summary of the quantities, man-hours and costs completed to date for the cost item’s related to your issue.
Add Markups
In addition to direct costs, you can calculate markups on your issue. Cost item pricing in InEight Change includes multiple levels for percentage-based markups that can stack on top of each other.
For example, you may add a markup just on labor costs. On top of that, you may include a markup for General and Administrative costs (G&A). Perhaps you then have an overall markup that is a percentage of all your costs, including the Labor and G&A markups.
The following steps walk you through setting up markups at the issue level.
Step 3
Add the markup details (name, percentage, what section to apply it to), then select Add to selected markups.
Access the following link to learn more about setting markups at the project level:
Back to Price the Issue Main Page