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
Section titled “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 automatically when a new estimate is created, ensuring every line belongs to a section.
Section Margins
Section titled “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
- Estimation default — the estimate-level default profit margin (fallback)
Margin Basis
Section titled “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 margin basis can be set at the estimate level or overridden per section. Margin-on-price values at or above 100% are rejected.
Display Mode
Section titled “Display Mode”Estimates can present pricing in two display modes:
| Mode | Description |
|---|---|
| Differentiated | Each section displays its own margins and subtotals |
| Blended | Sections are aggregated into a single blended margin for presentation |
Switching display mode does not change the stored margin values — it only controls presentation.
Section Lifecycle
Section titled “Section Lifecycle”| Operation | Description |
|---|---|
| Create | New section with name, optional client label, margin values |
| Patch margins | Update margins for one or more cost types on a section |
| Reassign | Move all lines from one section to another |
| Delete | Remove a section; lines must be reassigned first |
Sections can be marked Ready to stamp audit context. Section status changes are locked once the estimation is approved.
Workflow Role
Section titled “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
- Upon approval, sections and their margins are locked as part of the baseline