Pricing a change: the build-up of labour, material, equipment and markup on one sheet
The consultant receives a single number for a relocated corridor door. The trade has support for the hours, materials and moved switch, but none is tied to the total. The review stalls because the price cannot be checked line by line.
Show the changed quantities, labour basis, materials, equipment and subcontract work separately, then apply the project's permitted pricing additions on their stated bases. Keep the arithmetic and supporting references on one readable sheet. Separate incurred costs from estimated work where both appear. The build-up explains the price; authorization, entitlement and any time adjustment still need their own commercial review.
Let the reviewer reproduce the total
- Define the changed scope. Reference the instruction and marked location, identify what is added or removed and state exclusions. Check the original package to avoid pricing included work again. Keep unresolved scope assumptions beside the relevant line.
- Build the labour hours. Show quantities, planned tasks and hours, with the reason for the allowance. Apply the documented rate that the pricing basis requires. Distinguish an internal burdened cost from a contractually agreed billing rate rather than switching labels to support the same total.
- Show material and equipment inputs. Reference current quotes, freight and justified waste or consumable allowances. Price equipment on its actual hourly, daily or other booking basis. Identify whether hire, delivery or minimum charges already sit in another line.
- Attach trade quotes and normalize them. Confirm scope, dates, exclusions and tax treatment before using a subcontract total. State any adjustment needed to match the changed work. Do not add work already included in that quote to your own lines.
- Apply additions in the agreed order. Have the commercial reviewer confirm allowable rates, eligible components and any layered calculations. Show each base and multiplication. An accepted method for another job is not evidence of this contract's permitted markup.
- Reconcile the submission. Check units, extensions, totals and credits, then retain the sheet's issue date and supporting versions. Explain revisions on the next issue so a reviewer can see which quantities or assumptions changed without comparing every cell from memory.
Common mistakes
- Applying markup to the grand total without identifying its eligible base.
- Charging a supplier's freight both in its quote and on a separate line.
- Changing the price without dating or explaining the revised build-up.
Checklist
Before sending the pricing sheet
- Changed scope and source instruction.
- Quantity, hours and rate bases.
- Material and equipment references.
- Trade quote exclusions checked.
- Each markup base and rate visible.
- Credits, tax basis and issue date checked.
Check your understanding
A subcontract quote includes equipment that also appears in your own-work lines. Should both remain because they came from different sources?
