Estimating
Markups and adjustments
How overhead, contingency, escalation, and markup are treated as distinct commercial adjustments rather than hidden padding on unit rates.
Updated 2026-08-22
Commercial adjustments are easy to bury inside a unit rate. Infrenta’s estimating engine keeps several of them visible so a reviewer can see what is cost and what is policy.
Markup
Markup is applied as a commercial layer on cost, producing a sell price. Cost, markup amount, and sell price are different types in the engine. Changing markup should not rewrite the underlying cost build-up.
Estimates can store a markup percent on the document and keep it comparable across scenarios.
Contingency
Contingency appears as an adjustment distinct from measured cost. It is not a substitute for naming the risks that produced it. If foundation uncertainty is the reason for contingency, that reason belongs in GeoLab assumptions and estimate notes, not only in a round percentage.
Escalation
Escalation can be applied as a draft action and as a steel / commercial concept. Escalation is time-and-index sensitive. It should remain attributable — which index, which period, which scope — rather than being baked into every rate “to be safe.”
Overhead and margin
Overhead and margin decisions are commercial policy. The workspace is designed so they can sit on top of compiled cost instead of distorting labour-hour rates. Exact account mapping depends on how your organization authors the estimate.
What to avoid
- Padding every production rate so the total “feels right”
- Mixing contingency into crew rates
- Applying escalation twice — once in steel logic and again as a global percent — without noticing
If a total looks wrong, use Explain This Number before changing a rate that might not be the actual driver.