Shadow Jobs and Parent Jobs

One way to manage cost markups on a large job is through the use of shadow and parent jobs. All the labour, equipment, material and subcontract costs are posted to a shadow job. The shadow job represents your own costs to do the work, at the rates you’ve negotiated with your team and suppliers.

You’ve negotiated different rates with your client. This represents your profit margin. When you meet with your client to discuss the project, you’ll want to show them the work that’s been done and the progress made, but you want the dollar amounts on those reports to reflect their rates, not yours.

We call the job the client sees the parent job. It contains the marked-up costs for everything you’ve done in the shadow job. Not only can you provide extensive job cost reports to your client, but you can also use the parent job to know the exact amount to invoice your client.

Abio has a mechanism, Intercompany Billing, that creates invoices for the parent job that represent the costs from the shadow job. Labour can be marked up at Time and Material Rates. Material invoices can be marked up a percentage amount. Equipment is marked up using our equipment billing algorithm.