Project Price with price adjustments

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About this page

This CPT page displays the automatically-calculated project price with a breakdown as well as options to adjust the price. This is designed to support consultancy-based projects.

If this page is used, the only price parameter applied from Institution Level funding rules is Include GST?. All other price parameters are not applicable.

If this page is used, the ICR Item Override page (CPT025) will not be displayed in the tool.

 

Assumptions

•        Consultancy projects only have one external fund scheme and no internal fund scheme.

•        All costs are allocated to the single external fund scheme as cash. There is no in-kind contribution by the funder in consulting projects.

•        Contingency and margin do not apply to consultancy projects.

•        Approvals for using an ICR waiver for applications are managed by an internal, manual process, not in RME.

 

Prerequisites

This page displays and is editable if all of the following criteria is met:

  1. An applied Project Type Level funding rule has both of the following settings:

•        Use Pricing for Consultancy Projects? = Yes

•        Use Price Adjustment? = Yes

  1. You have access to the Project Price with adjustments page CPT028 via either a role or User Page Views. If not, contact your RME administrator.
  2. The corresponding eForm application is in an editable state for you.
    Background: If the eForm is read-only, this is usually because it is in a workflow state that does not involve you. For example, as a researcher, when you submit an eForm for Grants Office or Review, you can still view it but you can't edit it. In this case, when you go to CPT via the Costing and Pricing button in the eForm, CPT pages with editable elements will also be read-only.
 

Project Price with adjustments: Fields

This page is broken up into the following different sections for consultancy projects:

Price Calculation Parameters

This section provides details about the settings for GST that may be involved in the price calculation for consultancy projects.

Default Field Label

(in alphabetical order)

Description

GST Percentage

Read only; if  Include GST?; if No, displays as 0

Goods and Services Tax percentage applied to the total price of the project, as defined in the GST% field in System Preferences

Include GST?

Default: From Institution Level rules but can be changed

Indicates whether to include additional totals with GST calculated in the price

 

Price Adjustment

This section displays the fund scheme name for the project and, if the CPT Configuration setting Fund Scheme Rules based on Funding Organisation? is Yes, the organisation for the fund scheme. It also provides fields to specify how you want to adjust price if the page is editable.

 

To adjust the price, follow these steps:

1.     Select how you want to adjust the price in the Method dropdown: Price Adjustment or ICR Waiver.

2.     Complete the fields that dynamically display, using the tables below for either Price Adjustment or ICR Waiver as a guide.
Result: The settings adjust the parameters and price displayed in the Adjusted Price section. If no adjustments are made, the Adjusted Price section is not displayed.

Method: Price Adjustment

Default Field Label

Description

Adjusted Price (ex - GST)

Manually-entered price amount

The entered value will display in the Adjusted Price section as the Total.

If there is a difference, it will be displayed in the Adjusted Price section as Surplus/Deficit (+/-).
   

Method: ICR Waiver

Note: This type of price adjustment may be based on approval for ICR waiver for the application, which is an internal, manual process that is not managed within RME.

Default Field Label

(in alphabetical order)

Description

Allocate waived ICR amount as surplus?

Indicates how the ICR waiver amount is handled in the Adjusted Price section:

•        Yes - The ICR amount waived is listed separately as Surplus and is added in the Total Price calculation

•        No - The ICR total will be reduced by the ICR waiver amount and not listed separately

Amount or Percentage

Type of ICR waiver:

•        Amount

•        Percentage

The option selected will determine the nature of the value entered in the Value field.

Options

How the ICR should be adjusted, either:

•        Reduce By - to reduce ICR by an entered amount or percentage
Example: Amount or Percentage = Percentage
Reduce existing applied ICR percentage of 5% by entered value of 2 = 3% to apply

•        Reduce To - to reduce ICR to an entered amount or percentage
Example: Amount or Percentage = Amount
Reduce total ICR amount of 200,000 to entered amount of150,000

Value

Amount or percentage that is waived, based on the selection in the Amount or Percentage field
 
   

Calculated Price

This section provides a breakdown of the values used in calculating the price of the consultancy project for both adjustment methods.  The price reflects what funders will pay for the project.

Important note: Different fields display depending on the ICR settings.

 

Default Field Label
(in alphabetical order)

Description

GST

Calculated GST amount, if Include GST? is Yes in the Price Calculation Parameters section

Total Price x GST% as defined in the GST% field in System Preferences

ICR - Direct Salary

Only if ICR Method is Institution Direct Salary Cost or Mixed

Calculated indirect cost recovery value to recoup direct salary costs

Salary Cost x Institution Direct Salary Cost ICR % from the applied rule for pricing

ICR - Other Direct Cost

Only if ICR Method is Mixed

Calculated value to recoup other direct costs

(Consumable and Capital Items + Facility Cost) x Other Direct Cost ICR % from the applied rule for pricing

ICR - Total Direct Cost

Only if ICR Method is Total Direct Cost

Combined value to recoup total direct costs  

(Salary Cost + Consumable and Capital Items Cost + Facility Cost) x Total Direct Cost ICR % from the applied rule for pricing

Other Direct Cost

Calculated cost of non-salary expenses allocated to the fund scheme, such as consumable and capital items and facility costs

Consumable and Capital Items costs + Facility costs allocated to the fund scheme

Salary Cost

Calculated cost of team member salaries (new staff and investigators with a type that is not External) allocated to the fund scheme

Total salary costs allocated to the primary fund scheme

Total Price

Calculated total price without GST

Salary Cost + Other Direct Cost + ICR amount

Total Price incl. GST

Calculated price including the GST value

Total Price + GST amount

 

Adjusted Price

This section only displays if the price was adjusted. The display is dynamic based on the method selected in the Price Adjustment section, either Price Adjustment or ICR Waiver.

Method: Price Adjustment

Default Field Label
(in alphabetical order)

Description

GST

Calculated GST amount, if Include GST? is Yes in the Price Calculation Parameters section

Total Price x GST% as defined in the GST% field in System Preferences

ICR values

Different fields display depending on the ICR settings but the adjustments are applied in the same way, as outlined in the table below.

ICR - Direct Salary

If ICR Method is Institution Direct Salary Cost or Mixed

ICR - Other Direct Cost

If ICR Method is Mixed

ICR - Total Direct Cost

Only if ICR Method is Total Direct Cost

Other Direct Cost

Other Direct Cost Total as shown in the Calculated Price section

Salary Cost

Direct Salary Cost Total as shown in the Calculated Price section

Surplus/Deficit (+/-)

Value entered in Adjusted Price (ex - GST) less the total of Salary Cost, Other Direct Cost and combined ICR, as either a positive or negative value 

Total Price

Amount entered in Adjusted Price (ex - GST)

Any difference displays as Surplus/Deficit (+/-).

Total Price incl. GST

Calculated price including the adjustment plus the GST value

Total Price + GST amount

Also see: Example 1

 

Method: ICR Waiver

Default Field Label
(in alphabetical order)

Description

GST

Calculated GST amount, if Include GST? is Yes in the Price Calculation Parameters section

Total Price x GST% as defined in the GST% field in System Preferences

ICR values

Different fields display depending on the ICR settings but the adjustments are applied in the same way, as outlined in the table below.

ICR - Direct Salary

If ICR Method is Institution Direct Salary Cost or Mixed

ICR - Other Direct Cost

If ICR Method is Mixed

ICR - Total Direct Cost

If ICR Method is Total Direct Cost

 

Option

Amount or Percentage

ICR value

Reduce By

Amount

ICR value less entered adjusted amount

If Indirect Cost Recovery Method is Mixed (more than one ICR value displays), this is proportionate to the total ICR value, derived using the following calculation:

  1. Total ICR: 'ICR - Direct Salary' + 'ICR Other Direct Cost'

  2. Ratio: relevant ICR divided by Total ICR

  3. Reduced ICR value by ratio: Ratio x adjusted amount

  4. ICR value: relevant ICR minus reduced ICR value by ratio

See: Example 2, Example 3 and Example 4

Reduce By

Percentage

Relevant cost x (ICR % in the applicable funding rules minus percentage value entered)

If Indirect Cost Recovery Method is Mixed (more than one ICR value displays), the relevant cost is used, either Salary Cost or Other Direct Cost.

Reduce To

Amount

Entered adjusted amount

If Indirect Cost Recovery Method is Mixed (more than one ICR value displays), this is proportionate to the original ICR value.

Reduce To

Percentage

Relevant cost x percentage value entered  

If Indirect Cost Recovery Method is Mixed (more than one ICR value displays), use the same percentage for each ICR value.

See: Example 5

 

Other Direct Cost

Other Direct Cost Total as shown in the Calculated Price section

Salary Cost

Direct Salary Cost Total as shown in the Calculated Price section

Surplus

An amount displays if Allocate waived ICR amount as surplus? = Yes

•        If the Option is Reduce By, the total ICR waiver amount

•        If the Option is Reduce To, the difference between the original total ICR amount and the entered ICR waiver amount

Total Price

Total price with the adjustment, depending on whether a Surplus value is displayed separately, as follows:

Allocate waived ICR amount as surplus?

Value

 = Yes

Salary Cost + Other Direct Cost + adjusted ICR + Surplus

See: Example 3

 = No

Salary Cost + Other Direct Cost + adjusted ICR

See: Example 2

 

Total Price incl. GST

Calculated price including the adjustment plus the GST value

Total Price + GST amount

 

Total Project Amount (ex-GST)

This displays the total price amount for the project, depending on whether the price was adjusted by either method, as follows:

•        If price was adjusted, the total shown is the Total Price from the Adjusted Price section.

•        If price was not adjusted, the total shown is the Total Price from the Calculated Price section.

 

Examples

Example 1 - Method: Adjusted Price

In this example, the ICR Method is Mixed.

Price Calculation Parameters

Price Adjustment

Include GST?

GST Percentage

Method

Adjusted Price (ex - GST)

Yes

50

Price Adjustment

1,500,000

 

Price Calculation

Adjusted Price

Field

Value

Field

Value

Salary Cost

$1,202,711.27

Salary Cost

$1,202,711.27

Other Direct Cost

$392,000.00

Other Direct Cost

$392,000.00

ICR - Direct Salary

$240,542.25

ICR - Direct Salary

$240,542.25

ICR - Other Direct Cost

$76,400.00

ICR - Other Direct Cost

$76,400.00

Total Price

$1,911,653.52

Surplus/Deficit (+/-)

-$411,653.52

Adjusted Price (ex - GST) less total of Salary Cost, Other Direct Cost and combined ICR:

1,500,000 -  1,911,653.27 (1,202,711.27 + 392,000 + 240,542.25 + 76,400)

GST

$955,826.76

Total Price

$1,500,000.00

value entered in Adjusted Price (ex - GST)

Total Price incl. GST

$2,867,480.28

GST

$750,000.00

 

 

Total Price incl. GST

$2,250,000.00

 

Example 2 - Method: ICR Waiver Reduce By Amount

In this example, the ICR Method is Total Direct Cost.

Price Calculation Parameters

Price Adjustment

Include GST?

GST Percentage

Method

Options

Amount or Percentage

Value

Allocate waived ICR amount as Surplus?

Yes

50

ICR Waiver

Reduce By

Amount

250,000

No

 

Price Calculation

Adjusted Price

Field

Value

Field

Value

Salary Cost

$440,398.22

Salary Cost

$440,398.22

Other Direct Cost

$382,500.00

Other Direct Cost

$382,500.00

ICR - Total Direct Cost

$404,854.05

ICR - Other Direct Cost

$154,854.05

ICR  - adjustment amount:
404,854.05 - 250,000

Total Price

$1,227,752.27

Surplus

(blank)

GST

$122,775.23

Total Price

$977,752.27

Salary Cost + Other Direct Cost + adjusted ICR amount:

440,398.22 + 382,500 + 154,854.05

Total Price incl. GST

$1,350,527.50

GST

$97,775.23

 

 

Total Price incl. GST

$1,075,527.50

 

Example 3 - Method: ICR Waiver Reduce By Amount as Surplus

In this example, the ICR Method is Total Direct Cost.

Price Calculation Parameters

Price Adjustment

Include GST?

GST Percentage

Method

Options

Amount or Percentage

Value

Allocate waived ICR amount as Surplus?

Yes

50

ICR Waiver

Reduce By

Amount

250,000

Yes

 

Price Calculation

Adjusted Price

Field

Value

Field

Value

Salary Cost

$440,398.22

Salary Cost

$440,398.22

Other Direct Cost

$382,500.00

Other Direct Cost

$382,500.00

ICR - Total Direct Cost

$404,854.05

ICR - Other Direct Cost

$154,854.05

ICR  - adjustment amount:

404,854.05 - 250,000

Total Price

$1,227,752.27

Surplus

$250,000.00

GST

$122,775.23

Total Price

$1,227,752.27

Salary Cost + Other Direct Cost + adjusted ICR amount + Surplus:

440,398.22 + 382,500 + 154,854.05 + 250,000

Total Price incl. GST

$1,350,527.50

GST

$122,775.23

 

 

Total Price incl. GST

$1,350,527.50

 

Example 4 - Method: ICR Waiver Reduce By Amount (Mixed ICR)

Price Calculation Parameters

Price Adjustment

Include GST?

GST Percentage

Method

Options

Amount or Percentage

Value

Allocate waived ICR amount as Surplus?

Yes

50

ICR Waiver

Reduce By

Amount

250,000

No

 

Price Calculation

Adjusted Price

Field

Value

Field

Value

Salary Cost

$1,202,711.27

Salary Cost

$1,202,711.27

Other Direct Cost

$392,000.00

Other Direct Cost

$392,000.00

ICR - Direct Salary

$240,542.25

ICR - Direct Salary

$50,805.59

a) Total ICR: ICR - Direct Salary + ICR Other Direct Cost

240,542.25 + 76,400 = 316,942.25

b) Ratio = ICR/total ICR

240,542.25/316,942.25 = 0.758946622

c) Reduced ICR value: Ratio x adjusted amount:

0.758946622 x 250,000 = 189,736.65549481

d) ICR - reduced ICR value:

240,542.25 - 189,736.65549481

ICR - Other Direct Cost

$76,400.00

ICR - Other Direct Cost

$16,136.66

a) Total ICR: ICR - Direct Salary + ICR Other Direct Cost

240,542.25 + 76,400 = 316,942.25

b) Ratio = ICR/total ICR

76,400/316,942.25 = 0.241053378

c) Reduced ICR value: Ratio x adjusted amount:

0.241053378 x 250,000 = 60,263.344505189

d) ICR - reduced ICR value:

76,400 - 60,263.344505189  

Total Price

$1,911,653.52

Surplus

(blank)

GST

$955,826.76

Total Price

$1,661,653.52

Salary Cost + Other Direct Cost + adjusted ICR amounts:

1,202,711.27 + 392,000.00 + 16,136.66  

Total Price incl. GST

$2,867,480.28

GST

$830,826.76

 

 

Total Price incl. GST

$2,492,480.28

 

Example 5 - Method: ICR Waiver Reduce To Percentage

Price Calculation Parameters

Price Adjustment

Include GST?

GST Percentage

Method

Options

Amount or Percentage

Value

Allocate waived ICR amount as Surplus?

Yes

50

ICR Waiver

Reduce To

Percentage

30

No

 

Price Calculation

Adjusted Price

Field

Value

Field

Value

Salary Cost

$440,398.22

Salary Cost

$440,398.22

Other Direct Cost

$382,500.00

Other Direct Cost

$382,500.00

ICR - Total Direct Cost

$404,854.05

ICR - Total Direct Cost

$246,869.47

a) Total Cost: Salary Cost + Other Direct Cost = 822,898.22

  b) Cost x percentage value entered:

822,898.22 x 30% (rounded)  

Total Price

$1,227,752.27

Surplus

(blank)

GST

$122,775.23

Total Price

$1,069,767.69

Salary Cost + Other Direct Cost + adjusted ICR amount:

1,202,711.27 + 392,000.00 + 16,136.66 (rounded)  

Total Price incl. GST

$1,350,527.50

GST

$106,976.77

 

 

Total Price incl. GST

$1,176,744.46

 

Toolbar options

Options

Description

Save

Saves your changes made in this page

Outputs

Costing and pricing outputs available for the project and your role

Outputs with CPT data are created and managed by your RME administrators or office staff. They can be provided for different purposes, funders or stakeholders.

For output filter configuration, see: Output Configuration

Close

Returns you to the eForm costing and pricing summary page that has the button/link to open the tool

 

Navigation panel

The panel on the left includes a list of the pages available. Page status indicators are used to inform you about the status of each page.

The Totals section at the bottom of the panel displays an overview of the project totals (read only). See: Project Summary, Totals

 

Related topics

Costing and Pricing Tool pages:

•        Consumable and Capital Items

•        Facility Usage

•        Funding Rules

•        ICR Item Override

•        Institution Cash and In-kind Contribution

•        Project Cost

•        Project Price (without adjustments)

•        Project Summary

•        Project Team

•        Quotation Builder

 

Reference:

•        CPT page status indicators

•        CPT terminology

 

Costing and Pricing Tool configuration:

•        Funding Rules configuration

•        Salary and Indexation configuration

 

Product key: Costing and Pricing Tool

Page ID: CPT028.htm