Estimation Sections

Estimation Sections provide a way to organize an estimate into logical work categories, each with its own margin structure. Instead of applying a single profit margin to the entire estimate, sections allow differentiated margins per cost type — enabling more accurate pricing for different kinds of work within the same project.

What an Estimation Section Is

An Estimation Section is a named grouping of estimation lines (modules, materials, labor, expenses) within a project estimate. Each section carries its own margin configuration, independent of other sections and of the estimate-level defaults.

A default section is created with the estimate. Direct work without explicit placement can resolve there; indirect work can remain outside sections. Standalone, indirect, and fixed describe different things.

Section Margins

Each section supports differentiated margins across three cost types:

Cost Type	Description
Material	Margin applied to material costs within the section
Labor	Margin applied to labor costs within the section
Expense	Margin applied to expense costs (subcontract resolves through expense margin)

Margins are resolved in order of precedence:

Line override — an individual estimation line can override the section margin
Section margin — the section-level margin for the cost type
Cost-type default — the estimate’s material, labor, or expense default
Older general profit margin — fallback for estimates without more specific values

The first defined value wins. Empty means inherit; 0% applies zero. Changing a default does not clear overrides. Edit these values in Details’ Margins drawer; see Edit Estimate Scope and Margins.

Child lines follow their parent module’s section and direct/indirect classification. Move the parent when changing their section or area.

Margin Basis

Sections support two margin calculation bases:

Basis	Formula	Meaning
Markup on Cost	`price = cost × (1 + margin%)`	Margin is a percentage added to the base cost
Margin on Price	`price = cost / (1 - margin%)`	Margin is a percentage of the final price

The current editor selects estimate-wide basis in Margins; it has no separate section-basis selector. Margin-on-price values at or above 100% are rejected. Negative values receive warnings. In the formulas, use the percentage divided by 100: 20% is 0.20.

Display Mode

Estimates can present pricing in two display modes:

Mode	Description
Differentiated	Separate material, labor, and expense inputs
Blended	A shared input for those three cost types at the level being edited

Switching mode preserves stored values. Editing the blended input writes the entered percentage to all three cost types at that level. Mixed values remain identifiable until deliberately changed.

Expense Pricing Mode

Beyond the section display mode, each standalone expense line can be priced in one of two ways:

Mode	Meaning
Standard	The expense is priced from its quantity and unit cost
Lump Sum	The expense contributes a fixed lump-sum amount regardless of quantity

Expense pricing mode is set per expense line and is independent of the section’s display mode.

A standalone Lump Sum has quantity 1. Module expense recipes do not offer Lump Sum mode; they use Standard pricing with PerModule or PerUnit charge basis. PerModule amount expenses are charged once per occurrence; PerUnit amounts multiply by module quantity. All expense types, including percentages of materials or labor, use the Expense margin. See Expenses.

Fixed / Variable Breakdown

Module rows separate the fixed subtotal from the variable subtotal and show the effective rate (total ÷ quantity). The subtotals reconcile to the total; changing display mode does not change them. A fixed cost is not necessarily indirect, and a direct cost is not necessarily variable.

Materials, labor, and PerUnit amount expenses scale with module quantity. PerModule amount expenses do not. Percentage expenses split according to their calculation base. Composite totals scale with composite quantity and have no fixed component at that level. At zero quantity, unit rates display —. Review the server’s change summary after saving a quantity change or explicitly recalculating.

Pricing Occurrences

When a module appears on different elements, Darwin prices each occurrence separately. Grouping those rows into sections or a client proposal does not change their total. Review the individual quantities and rates when you need to explain a difference.

Section Lifecycle

Operation	Description
Create	New section with a name and margins; an owner can be assigned
Patch margins	Update margins for one or more cost types on a section
Reassign	Move all lines from one section to another
Delete	In Details, move its work to the default section and remove it; the default is protected

Sections can be Draft, In progress, or Ready. Ready records who marked it and when; leaving Ready clears the stamp. Mark all ready prepares sections for review and does not approve the estimate. History describes margin decisions with actor and date; it does not provide a structured before/after breakdown of every percentage.

Workflow Role

An estimate is created with a default section
The estimator organizes work into sections reflecting trade categories, project phases, or work packages
Different margins are applied per section based on commercial strategy, risk profile, or client agreements
During review, section margins can be challenged and adjusted
On approval, the line and margin editor becomes read-only; further financial changes should be worked on in another revision

A target margin and its suggestion do not replace every override. Check the effective saved percentage in Summary after applying a suggestion.