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Does Handoff Separate Material and Labor Costs?

Yes, Handoff does separate material items and labor items in your estimate by default

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Written by Handoff Support
Updated this week

Yes! Handoff separates material and labor in your estimates by default. When the AI generates an estimate, it creates distinct line items for materials and labor so you can see and adjust each cost independently.


How Cost Separation Works

When Handoff AI generates an estimate, it produces separate line items for:

  • Materials — physical supplies, products, and equipment

  • Labor — hours or fixed fees for work performed

  • Other — miscellaneous costs like permits, disposal, or subcontractors

Each category can carry its own markup percentage, so you can charge different margins on materials vs. labor.

Setting Markup Rates by Category

You can configure default markups for each cost type in Presets:

  1. Go to Settings → Presets.

  2. Scroll to the Markups section.

  3. Set your default markup percentage for Labor, Material, and Other.

The AI will apply these defaults automatically when generating new estimates. You can always override the markup on any individual item or at the estimate level.

Viewing Material vs. Labor Costs

In the estimate table, each row shows its cost type. You can filter or group by cost type to see a breakdown of your material and labor totals.

Editing Cost Type on a Line Item

To change the cost type of an existing item:

  1. Tap the item to open the editing panel.

  2. Tap the Cost type field and select Material, Labor, or Other.

  3. Tap Done to save.

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