How is a ProPay calculated when the budget is a fixed amount?

Purpose

When budget type is Amount, you set a fixed dollar amount as the labor budget. Protiv compares actual labor cost against that amount. This article shows the math.

When To Use This

Use this when:

You set a job up with budget type = Amount
A worker asks how the math worked
You're choosing between Amount and Contract Price budget types

The Formula

Actual labor cost = Total hours × combined wage rate
Saved labor = Budget amount - Actual labor cost
Bonus pool = Saved labor × split_job_savings %
Worker bonus = Bonus pool × pool split for that role

Worked Example

Job: HVAC install at a commercial site.

Budget type: Amount
Budget: $5,000
Crew: 4 workers, combined wage rate $90/hr

Crew finishes in 45 hours.

Actual labor = 45 × $90 = $4,050
Saved labor = $5,000 - $4,050 = $950

Split job savings 50/50 → worker share = $475.

Pool: 70% crew, 20% lead, 10% manager:

Amount vs Contract Price

These look similar but aren't:

Amount — You set a flat $ budget (e.g. $5,000 of labor)
Contract Price — You set a contract price + a labor budget %, Protiv calculates the labor budget

Use Amount when:

You know the labor budget directly
The job is internal (no customer contract price)
You want simple, direct control

Use Contract Price when:

You quote customers a flat price and labor is a % of it
You want labor budget to scale with contract value

Common Mistakes & How To Fix Them

"My amount budget seems wrong" Verify it's the labor budget, not the contract price. These are different.
"Saved labor came out negative" Crew went over budget. There's no positive bonus, but penalties or deductions might still apply.

How is a ProPay calculated? (Hours budget type)
How is a ProPay calculated? (Contract Price budget type)
What are the 4 bonus distribution types?