How does Operating decide the cost rate?
How Operating resolves the internal cost rate for each Person on a Position — checking from the most specific source down to a site-based default, in a fixed order.
Written By Lauri Eurén
Last updated 1 day ago
Operating works out the internal cost rate for each Person on a Position by checking the most specific source first and falling back until it finds one. A project-specific override for an external wins if it's set; otherwise the Person's individual cost rate is used; otherwise an external falls back to your default external cost, and an internal to the cost card for their Site, Role, and seniority, then to your default cost. This is your internal labor cost — the rate you charge clients is decided separately.
The order Operating checks
For an assigned Position, Operating resolves the cost rate in this order and stops at the first match:
A project-specific external override. If you set an override cost on an external's Position in a Project, that applies — only within that Project and that Position.
The Person's individual cost rate. A cost set on the Person's profile (under Employment) is used next.
Otherwise, by Person type:
Internal: the cost card for the Person's Site, Role, and seniority. If no cost card covers that combination, your default cost applies.
External: your default external cost. (Externals don't fall through to cost cards.)
For an unassigned Position — a Role with no Person yet — Operating uses the cost card for the Position's own Role, seniority, and Site, falling back to the default cost.
Costs are site-specific
Cost cards are set per Site, because labor cost varies by location: the same Role at the same seniority can cost more in one Site than another. You set the defaults and cost cards in Settings, under Financials.
Per hour, week, or month
A cost can be entered as an hourly, weekly, or monthly figure. Operating converts week- and month-based costs into an hourly cost by spreading them across working days, so every cost compares on the same basis.
Who can see cost rates
Cost rates, and the margins built from them, are permission-gated — with separate permissions to view and to edit costs. A Person without the view-cost permission won't see cost rates or per-position margin.