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How Distributed Fees Work With Subtotals

In DESTINI Estimator Cloud, distributed fees and fee subtotals are calculated in a clear and predictable way to ensure fees are only counted once and the total project cost behaves as expected.

This article explains how distributed fees interact with subtotals, how fee calculations are performed, and what to expect when working with estimates, templates, or estimate versions.

Distributed Fees in Brief

A distributed fee represents a defined cost that is allocated across estimate line items rather than added as a single lump sum. Users expect distribution to control where the fee’s cost appears in the estimate - not how much the fee contributes to the total.

How Subtotals Are Calculated

Fee subtotals are always based on Direct Cost, plus any fees listed above them in the Fee table.

Subtotal Calculation Rule

  • Subtotal = Direct Cost + all prior fees

Key points:

  • Subtotals do not use Distributed Direct Cost as their starting point – only Direct Cost.
  • Distributed fees are included in subtotals the same way as non‑distributed fees.
  • A fee based on a subtotal is calculated only once, regardless of distribution.

This ensures that fees based on subtotals behave consistently and do not unintentionally compound other fees.

Example: Distributed Fee Based on a Subtotal

Consider the following scenario:

  • Direct Cost: $100,000
  • Fee 1: 10% based on Direct Cost = $10,000 fee
  • Subtotal: Direct Cost + Fee 1 = $110,000 Total Cost (as shown above).

Now we will add a fee based on the subtotal:

  • Fee 2: 10% based on Subtotal = $11,000 fee (no distribution).
  • Total Cost = $121,000

If one or both fees are then marked as distributed:

  • The fees are allocated across estimate line items as expected.
  • Distributed Direct Cost is updated as expected.
  • The subtotal, and thus the second fee based on that subtotal, remain unchanged.
  • The total project cost remains the same - no additional cost is introduced through distribution.

By separating fee calculation from fee distribution, the system ensures accurate totals while still providing flexibility in how fees are allocated across an estimate.

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