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This process guidance document is to be used as a guide for builders implementing Framework Document Management. This guide discusses Framework's approach to the determination and analysis of markup/margin in sales and production estimation business processes.

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For this reason, Framework employs the unambiguous term Markup, as the clear monetary difference between the cost price and the sell price, excluding GST considerations. The margin is the percentage of the sell price that the markup represents.

• Framework Markup Amount: Sell Price - GST - Cost Price (ex GST)

• Framework Markup Percentage: Markup Amount / Cost Price (ex GST)

• Framework Margin Percentage: Markup Amount / (Sell Price - GST)

Document Overview

Framework's Document Overview provides a summary of markup and margin information for all stages of the work flow. Markup and margin can be determined for the initial sale from the base house price, at contract stage from the production of tender documents, when going to site at the commencement of construction, at the completion of construction, and the commencement of maintenance and the completion of maintenance.

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To aid in ongoing margin analysis once a job enters construction, Framework integrates with the accounting system to synchronise committed costs information daily. The current committed costs are available at all times, and also frozen at keys points of the work flow process for accurate review and further analysis of margin erosion. Margin is frozen at the following times:

• Commencement of construction

• Completion of construction

• Commencement of the defect liability maintenance period (DLP Maintenance)

• Completion of DLP Maintenance

Committed Costs Close Off Management

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