An Excel Spreadsheet for correctly determining a Loaded Labor Rate and or an appropriate Labor Markup for Contractors Using a Capacity Based (aka PROOF/Indexed/Labor Allocated Overhead) Markup Methodology.
To learn more about Markup try searching the Developer’s Blog here for books and article links with the tag Markup.
As part of a discussions in the Journal of Light Construction Online Forums back in 2004 regarding use of what is known as a Capacity Based Based Markup (also sometimes known as PROOF or Indexed or Labor Allocated Overhead markup so hence the PILAO acronym for the worksheet) I created this Excel Workbook.
For more information regarding using a PROOF/Indexed/Labor Allocated Overhead markup method in general click to read the Paradigm Projects Quietly Re-Thinking Out Loud Blog Post: The Potential Problem Using a Traditional Volume Based Markup : Comparing the Traditional Volume Based Markup vs. a Capacity Based Markup Methodology and the links there to other articles on the web.
Capacity Based Markup worksheet is a simple Excel workbook with no macros so it works with either Macintosh or Windows versions of Excel and can even be opened and used with Apple’s iWork Numbers application too.
Licensed users of the Capacity Based Markup Worksheet will also receive free upgrades to any revisions whenever they become available.