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JOC coefficient and markup calculator
In JOC, the owner’s unit price book (UPB) sets preset prices for tasks, and the contractor bids a coefficient that multiplies those prices. Many contractors think in markup percentage instead. This tool converts between the two so you can sanity-check a number.
Illustrative only. Programs vary.
Your estimated direct cost, or the unit price book extension for the job order
- Markup % = (coefficient - 1) × 100
- Coefficient = 1 + markup ÷ 100
- Extended price = base × coefficient
- Difference = extended price - base
Educational and illustrative only. JOC programs, price books and contracts vary. Not legal, financial or procurement advice.
Explained
Coefficient vs markup in plain language
Markup is usually expressed as a percent added on top of cost.
A coefficient is a multiplier on the published price book price. It has to cover everything the price book does not: overhead, profit, local labor and material differences, bonds and insurance if required, and so on.
A coefficient applies to price book prices, not necessarily to your own cost. A markup on cost and a coefficient on the book are only equivalent when the base is the same.
A coefficient below 1.00 means pricing below the published book.
Common questions
Quick answers.
How do I convert a coefficient to a markup percentage?
Subtract 1 and multiply by 100. Markup % = (coefficient - 1) × 100.
Is a coefficient the same as a markup on my cost?
Only when the base is the same. A coefficient applies to price book prices, not necessarily to your own cost.
What does a coefficient below 1.00 mean?
It means pricing below the published price book.
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