Materials markup rules

These rules are mandatory at quote time. Markup is applied to the supplier cost (the figure in pricing-materials) to produce the line-item unit price the client sees. Labor rates from pricing-labor are not marked up — labor is priced at the rate card directly.

Standard tiers

Work classification	Markup on materials
Domestic (residential, ≤ 100 A main)	20%
Light commercial (shopfront, small office, ≤ 400 A)	25%
Heavy commercial / industrial (≥ 400 A, factory, data centre)	30%

Modifiers

Modifiers are additive on top of the base tier and apply only for the circumstances below:

• Expedited scheduling (client requests a start within 7 days): +10 percentage points on the base markup. Disclose on the quote as "expedited scheduling" so the client sees why pricing differs from a standard-schedule quote.
• Remote site (80–250 km from depot, per pricing-labor): +5 percentage points on the base markup to cover supply risk and split-delivery handling.
• Single-source specified by client (client mandates a brand that is not our preferred supplier): +5 percentage points.
• Hazardous environment (classified zones, confined spaces, live works required): +10 percentage points.

Modifiers stack. The maximum combined markup on any line is 55%. If the computed markup would exceed 55%, cap at 55% and flag the project for Commercial Manager review before quote release.

Discounts

• Contract client (existing annual preventative-maintenance agreement): −3 percentage points on the base markup. Does not stack with other discounts.
• Repeat fit-out (≥ 3 identical quotes released in the last 12 months for the same client): −5 percentage points on the base markup, applied to materials lines that are demonstrably repeats of the prior quote.

Discounts cannot bring the markup below 15% on any line. If the computed markup would be below 15%, cap at 15% and record the discount waiver on the quote's internal notes.

Handling of custom-sourced items

Items not listed in pricing-materials are priced at cost + 15% handling, regardless of the base tier. The 15% handling is the total margin on custom-sourced items; the tier markup is not applied on top. This avoids double-margining items we have not vetted into the standard catalog.

Worked example

A commercial switchboard upgrade using a SB-400-M ($8,900 supply cost) at standard-tier commercial markup (25%):

• Supplier cost: $8,900
• Markup (25%): $2,225
• Line amount (ex GST): $11,125

If the client mandated a specific brand not in our catalog, add the single-source modifier (+5%): tier becomes 30%, line amount is $11,570.