# Default Modifiers Default Modifiers are the fringes and markups you configure once at the organization level so they automatically appear on every new project estimate. Your standard cost structure — payroll taxes, insurance, production fees, agency commissions — is set up here and carried forward into each job without any manual setup. This is one of the more important configuration steps in PAI. Every estimate your team builds inherits from these defaults, which means the consistency of your pricing, the completeness of your cost coverage, and the accuracy of your internal accruals all depend on getting this right once. A well-configured defaults page ensures payroll taxes don't get forgotten on a rushed bid, that internal costs are properly accrued against their actual cost to your organization, and that your margin math is reliable from the first line item of every new job. Access Default Modifiers via **Settings → Modifiers**. For a full explanation of how Fringes and Markups work within an estimate — including how each type calculates, the Passthrough option, Apply to Fringes, and group-level assignment — see [Modifiers](../02-Bidding-a-Project/Modifiers.md). --- ## Fringes and Markups The Modifiers settings page is split into two sections: **Fringes** and **Markups**. Both follow the same creation and scoping pattern. The distinction is in how they calculate within an estimate: - **Fringes** are absorbed into line item totals — the charge lands at the line level, embedded in what each line shows. - **Markups** aggregate separately above the line level — they don't affect individual line totals and appear only in the Job Fees section of Live Margins. --- ## Creating a Default Modifier Click **+ Add Fringe** or **+ Add Markup** to create a new entry. Both share the same fields: - **Name** — use descriptive names your team will recognize (e.g., "P&W", "Production Fee", "Agency Commission") - **Color** — used to visually distinguish modifiers in the estimate view; pick a consistent color scheme across your org - **External Percent** — the rate billed to the client - **Internal Percent** — your actual cost - **Passthrough** — when enabled, PAI automatically floats the external percentage so the external modifier amount matches the internal amount, regardless of how the two subtotals differ Markups have one additional option: - **Apply to Fringes** — when enabled, the markup calculates against line item totals (which already include fringes) rather than base subtotals > [!tip] > If an external percentage doesn't apply — for example, a modifier that only tracks internal cost without billing the client — leave the External field as `n/a`. Modifiers with a zero external amount don't appear on printed estimates. --- ## Default Application (Scoping) Click the caret (`>`) to the left of any modifier name to set how it applies when new projects are created. Both Fringes and Markups have the same four options: **Apply to all items in the project** — the modifier automatically applies to every line item in any new estimate. Use this for universal costs that apply regardless of what's in the budget. **Apply to none of the items** — the modifier is available in the Modifiers tab and line item fields but doesn't apply automatically to anything. Use this for modifiers that vary by situation — for example, payroll tax rates that differ by state — so the project team can select the correct one rather than have an incorrect rate pre-applied. **Apply to specific categories** — after selecting this, choose which category the modifier applies to. It will automatically apply to all line items in that category on new estimates. Use this to target a cost type — for example, applying P&W only to Labor items. **Apply to specific departments** — after selecting this, choose which department the modifier applies to. It will automatically apply to all line items added to that department on new estimates. > [!note] > Category and department scoping can be combined on a single modifier — set it to specific categories *and* specific departments to narrow the default application further. --- ## How Defaults Behave - **New projects only.** Default modifiers apply at project creation. Changing defaults after the fact does not affect any existing projects. - **Project-level overrides always win.** Once a project is created, its modifiers can be modified freely without affecting the organization defaults. - **New modifiers cannot be created in the budget.** Only modifiers from your organization defaults — and any added during estimation — are available on budget expense lines. Configuring your defaults carefully here is how you ensure the right modifiers are available throughout a job. > [!note] > If you need to update modifiers on an existing project, do it at the project level via the estimate's Modifiers tab.