# What is a Factor?

A **Factor** is a sum of money added to a project. You can use factors for any additional costs on your project like travel expenses, discounts, permits, miscellaneous hardware, etc.

Factors are usually displayed to the client as a lump sum at the end of a proposal, but we also show a breakdown of how much Factor is in each Room/System. This allows you to get a more accurate picture of how much money a Room contributes to the project total.

The Factor Method and Category determine how the factor is divided into Rooms and displayed in the financial breakdowns.

# How is the Factor Divided between Rooms?

**Flat Rate.**If your factor is set as a 'Flat Rate', it will be equally divided among the Rooms.*Example*: If you have four rooms, then 25% of the flat rate factor will show up in each Room in the "Totals" section in the Builder.

**Percentage.**If your factor is set as a "Percentage of X" (Equipment Price, Cost, Labor, or Equipment and Labor), then the factor total for each room will show as a percentage of the corresponding value of the*factor category*in that Room. If there is no value associated with the factor category, then it will be divided based on the selected method.*Example 1*: If your factor method is "% of Equipment Price," and the target category is "Installation":"Installation" is one of the 4 categories of Labor. The total value of that factor will be split up among the rooms based on what percentage of the Project's total

*Labor*is in each room. So if your project contains 10 rooms, but only 2 rooms contain Labor, then the factor will be split between those 2 rooms accordingly.The 'type' of Labor: Engineering, Installation, Management, and Programming will determine which category of labor the factor cost and factor price will attach to, and will be incorporated into the Margins summary for the selected category on the Overview and Builder pages.

*Example 2*: If your factor method is "% of Equipment Price" and the target category is "Shipping":The factor total will be split up among the rooms based on what percentage of the project's total Equipment is in each room.

*Example 3*: If your factor method is "% of Equipment Price" and the target category is "Equipment":The factor total will be split up among the rooms based on what percentage of the project's total Equipment is in each room.

**Price/Hours Per Day.**If your factor is set as Price per Day of Labor, or Hours per Day of Labor, the factor is divided into rooms based on how much of the corresponding labor type is in each room.*Example*: If you have a Price Per Day of Labor factor set up as "$100 per day of Installation labor," and you have 2 days of Installation labor in Room A, and 3 days of Installation labor in Room B, then Room A will contain $200 of that factor, and Room B will contain $300.Hope this helps! If you have any questions about the way your factors are showing up in the financial breakdowns in the Builder, feel free to message us!