Rsmeans Cost

RSMean is used for construction estimating. Many construction projects can be difficult to estimate and the RSMeans database is a useful tool in preparing a bid for a client. The database can be used to calculate a construction project based on square footage, the equipment used and the materials used. The building cost index that is used in the system has been compiled over time and includes cost information about industry averages for specific construction activities.

This index can account for the increased costs of a construction project that are due to factors such as inflation, cost of materials, and the cost of labor. For example, cost information from a construction project in the 1980s can be adjusted to represent what a similar project would cost in today's market. The accuracy of such estimates is considered to be within twenty to thirty percent of the actual costs. Therefore there is some margin of error that should be considered when estimating with such and index.

RSMeans Functionality RSMeans stands for "Means Square Foot Costs." This model uses parameter cost characteristics.

The characteristics relate all costs of a project to just a few physical measures, or "Parameters" that reflect the size or scope of the project E.g., warehouse - the "Parameter" would be Gross Enclosed Floor Area: All costs represented by X ($/S.F) ? total cost = X ($/S.F.) x the project's gross enclosed floor area (S.F.) With good historical records on comparable structures, parameter costing can give reasonable levels of accuracy for preliminary estimates After the historical values are estimated by using the square footage, additional calculations can be added to further refine the project.

For example, if the structure requires a special feature that is beyond what the cost index includes, then this feature could be added to the estimate in addition to the base costs. This allows for a lot of flexibility in the estimation process using this system and the estimate based on square footage can be altered considerably. There are many reasons that contractors would choose to alter the initial calculations. Any factor that would increase costs above and beyond the established rate is generally the primary driver for any alterations.

There are a plethora of costs that are included in such a proposal. This includes costs such as material, equipment, subcontractors, and direct and indirect labor. The labor costs are generally the hardest factor to estimate. Many projects will take considerably longer than originally estimated and contractors may have to absorb these costs. Therefore it is important to analyze the risks that could potentially drive labor costs up beforehand to avoid any unexpected increases in the labor costs.

Furthermore, labor costs also include overhead labor such as administrative costs which can also be difficult to calculate. In most cases the project overhead can represent five to fifteen percent of the total project cost. The markup on any particular construction project is generally the contractor's primary concern because this will represent the profits that the project generates for the company. The profit margin can vary significantly by industry or even individual projects. When the proposals are more competitive then this generally lowers the return that a contractor can expect.

The profit margin usually falls between the five to twenty percent mark. Projects that are considerably.