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A Guide to Construction Cost Sources

Commissioned by: Ontario Construction Secretariat Authored by: Prism Economics and Analysis and the Department of Civil Engineering, University of Toronto

March 2001

A Guide to Cost Sources


As the industrial, commercial and institutional (ICI) marketplace becomes increasingly global, the competition to host new facilities also becomes more intense. Decisions by owners on where to build are often based upon a conceptual estimate, with construction costs being part of that estimate. Other factors include (but are not limited to) projected returns on investment, location-specific tax relief, energy availability, and operating costs. It is important to put construction costs in context. For a new industrial facility, construction cost comprises both the cost of constructing a building and the cost of equipping the facility. The following chart from Richardson Engineering Services, Inc. illustrates the cost breakdown for a Toronto area project. Other Canadian locations would have a similar cost structure.
100% Construction Cost 20% Buildings & Site 55% Field Material 45% Labour 75% Engineering Equipment Figure from Richardson Engineering Services 15% Labour 10% Field Material 80% Process System

installation of processing equipment. Labour costs account for 21% of the total construction cost (9% in building and site construction, and 12% in processing installation. For determining the cost of construction in the preliminary stages of project development, several cost indexes are commercially available. These differ in their intended use and their reliability. One index may depict the cost of construction in a certain city or area as very competitive globally, while another may indicate that the same location is uncompetitive. This report discusses the assumptions behind construction cost indexes available in the ICI industry and compares the resulting indication of cost competitiveness using Toronto as the baseline.

Normalization
Normalization answers the question: what is the base (i.e. 100) for an index. Cost indexes can be normalized on time or location. Often, indexes are normalized to a baseline value of 100 assigned to a specific year and location. For example, an index might take as its baseline 100 as the cost of building a 20 storey office building in Toronto in 1992. Locations may be defined as cities, telephone area codes, provinces/states, or countries, depending on the level of detail and the intended use of the index. The assumptions and methodology behind each index is unique, therefore the values are not transferable.

Input, Output, and Hybrid Indexes


As can be seen, for a typical processing plant, building and site work accounts for only 20% of the total costs including A Guide to Cost Sources There are several facets of cost indexes that may affect their applicability. First, it is important to know the philosophy

behind the index. Generally, they are characterized as input, output, or hybrid indexes 1. Input indexes are compiled from a shopping cart of common materials, equipment, and trade labour hours. They represent the inputs to the construction process and reflect the market prices for these items. For example, an input index may be based upon the cost of 100 m3 of concrete, 50 hours each for a carpenter, mason, plumber, electrician, and an ironworker, and 200 hours each for a backhoe and a mobile crane. Local costs for the items in the shopping cart are determined for every location covered by the index, and summed. They are then normalized to the baseline to produce the index. Input indexes do not contain any assumptions or adjustments related the local labour productivity although some effort may have been expended to generally proportion the quantities of labour and materials. It is important to note that the quantities are constant in every location. This means that some aspects of the construction process are not captured, such as labour skill levels or practices and local building code requirements. While the use of input indexes is limited, they are the simplest to produce and contain the least error. Local hard costs are collected from collective agreements and material distributors/retailers. Importantly, these indexes are not biased by assumptions or estimates of local conditions. This index may be useful for construction companies that move their own crews between projects and only need to know the differences in the cost of materials. Output indexes attempt to measure the total cost of construction of a completed structure in each location. This is
1

achieved in one of two ways. First, actual tender prices for projects are collected. Because every project will have different parameters, the costs must be adjusted to account for the different project characteristics. Although these indexes more closely represent real costs, it is extremely difficult to collect this information and to adjustment the costs in a reasonable way to reflect the effects of the different project parameters. For example, the cost of constructing a high rise building will be affected by the footprint size and shape, the building height, the interior finishes, the presence of underground parking, and ground conditions. The second procedure is to estimate the cost of constructing a specific building. The various characteristics of the building are outlined and estimates are solicited from practitioners in each location. While this method produces indexes that reflect location conditions including labour skill, availability, and productivity, it requires significant cost estimating resources. Extreme care must be taken to ensure that the assumptions made in the specifications are acceptable across all locations. This method introduces uncertainty and possibly biases because the estimated costs are dependent upon the practitioners. When tenders are submitted for a project, every bid that is submitted has a different price. The index cost developed by the estimator may affect the perceived competitiveness of that location by the users of that index. Hybrid indexes exploit the ease of input index development and the reliability of output indexes. Instead of providing indexes based on the total cost of a project, hybrid indexes focus on the installed costs of smaller building elements, such as foundation walls, insulation or roof membranes. Building elements are usually organized using MasterFormat. Often, labour cost, material cost, and total cost including overheads are provided.

Mohammadian, R., and Seymour, S., 1994, Construction Price Index Methodology, 1994 CSCE Annual Conference, Winnipeg, MB, Canada

A Guide to Cost Sources

It is important to understand the basis of these indexes. If costs are provided for each location, then they may contain productivity differences. If the cost is ascertained for a single location and then applied across locations using a location index, the assumptions behind the location index must also be considered. Often assumptions are based on labour hourly costs and material costs, with a standard productivity rate and overhead rate applied, making them more similar to an input index than an output index.

Validation
Finally, the reliability of the data is always in question. The method used to collect the cost data is very important to ensure the data are representative of the political and economic conditions. Data collection may be done by phone with associated firms (engineers, quantity surveyors, and/or contractors) providing information, by survey of published labour, material, and equipment costs, or by review of completed project files. Where associated firms are providing the information, it is important that they all understand the assumptions that must remain constant for all locations, and to not allow personal or local biases affect the reliability of the process.

Compilation Method
A second facet of the cost index relates to how the cost information collected over several projects or locations is compiled into a single index. Several schemes have been developed including using simple averages, medians, modes, inverse averages, and product roots. Each method results in a different index value even if the same data are used. In most cases, the mean (the mathematical average) or the mode (the most likely value) is used based on a sample of 3 cost estimates. For example, consider three costs collected as $1.25, $1.30, and $1.75. The mean would result in a cost of $1.43 whereas the mode may be interpreted as $1.30. Because small sample sizes are usually used, some subjective judgement must be used to ensure the results are reasonable. Occasionally, a confidence level is used as the value. Assuming a normal distribution was fit to these data and an 85% confidence value was desired, this would result in a cost of $1.72. It is obvious that the method significantly affects the resulting reported cost, and they are all correct based on their interpretation. Method Mean Most Likely 85% Confidence Cost $1.43 $1.30 $1.72

A Guide to Cost Sources

Research Objective
The primary objective of this research was to:

Develop a reference guide that presents the key characteristics of each construction cost source separately and allows convenient comparisons of results.

This was achieved by collecting the cost sources, interviewing analysis and publishers, documenting results and preparing the guide. Additional analysis was performed showing how the indexes compared over time, and by location.

How to Use this Guide


This Guide is organized in the following manner. Section 2 contains a summary of the cost sources and a comparison of the costs over time and location. Section 3 contains detailed information for each cost source outlining the assumptions, strengths and weaknesses of each source. In addition, a standardized format specific to each index was prepared outlining their characteristics related to labour, material and equipment indexes, assemblies and structures indexes, and location indexes.

The cost sources included in this guide are: Boeckh Commercial, Institutional, Light Industrial Building Cost Guide Dodge unit Cost Guide Engineering News Record Hanscomb Yardsticks Hanscomb-Means International Construction Cost Index Helyar Construction Cost Guide KPMG International Cost Comparison Analysis RSMeans Building Construction Cost Data Richardson Construction Cost Trend Reporter Richardson International Cost Index Saylor Current Construction Costs Statistics Canada Construction Price Statistics

A Guide to Cost Sources

Summary of Cost Sources


Labour (Input) Materials (Input) Cost Type Equipt Assemblies/ (Input) Structures (Output) Location Indexes Input Input Input Input & Output Output Output Output Input Input Time Series

Cost Source Boeckh Dodge ENR Hanscomb Helyar KPMG Richardson RSMeans Saylor Statistics Canada

A Guide to Cost Sources

Comparison of Time Series


Statistics Canada and Helyar Indices (1981=100) Toronto: Commercial 200 175 150 125 100 1981 1983 1985 1987 Helyar 1989 1991 1993 1995 1997

Some of the indexes can be expressed as time series that are approximately comparable to the time series published by Statistics Canada. No inference should be made from these comparisons that one index is more reliable than another. The reliability of an index is determined by its suitability to the use to which it is applied and by the validity of the assumptions with respect to that use. In all cases, the comparisons are rates of change from a base year. Statistics Canada / Helyar ( Figure 1) Figure 1 compares changes from 1981 in the cost of constructing a commercial-use building, as measured by Statistics Canada and Helyar & Associates. From 1981 to 1989, the Helyar Index and the Statistics Canada Index closely track one another. The indexes differ on whether construction costs peaked in 1989 or 1990. In the 1990,s the indexes diverge significantly. Statistics Canada reports a moderate decline in construction costs approximately 6% from 1990 to 1992. Helyar & Associates, however, report a much sharper decline in costs approximately 22% from 1989 to 1992. Thereafter, both indexes track a comparable 1% annual rate of inflation form 1992 to 1999. While there are strong similarities in the trends reported by the two indexes, it is significant that they differ on both the turning point of the construction cycle and the extent of cost reductions during the period of contraction from 1991 to 1993. Statistics Canada / Saylor (Figure 2) The Statistics Canada and the Saylor indexes exhibit approximately similar patterns. During the contraction of 19901992, Statistics Canada reports a reduction in construction costs. This is consistent with the Helyar index and also with expectations. The Saylor indexes, however, show virtually no decline in costs during the recession.

Statistics Canada

Figure 1: Statistics Canada vs. Helyar

Statistics Canada and Saylor Indices (1990=100) Statistics Canada: 7 City Average Saylor: Sub-Contractor and Materials & Labour Indices 140 130 120 110 100 90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Saylor: Sub-Contractors Statistics Canada

Saylor: Materials & Labour

Figure 2: Statistics Canada vs. Saylor

A Guide to Cost Sources

Statistics Canada and Boechk Indices (1990=100) Statistics Canada: Toronto Non-Residential Boechk: Unweighted All-Components Average for Ontario 140 130 120 110 100 90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Boechk Ontario Average Statistics Canada-Toronto Non-Residential

Over the decade, Statistics Canada estimates construction cost increases of 10% compared to 25% and 27% in the Saylor indexes. The Saylor indexes consistently estimate inflation at significantly higher rates that Statistics Canada. Statistics Canada / Boechk (Figure 3) As in the Saylor comparison, the Boechk Index diverges sharply from the cost pattern reported by Statistics Canada for the recession years (1991-1993). During this period, Statistics Canada reported a cost reduction for Toronto Non-Residential construction of approximately 5%. Boechk, however reports a cost increase of 15%. This degree of cost increase is unique among the indexes for the period in question and is also counter-intuitive. For the period 1993 to 1999, the Boechk and Statistics Canada indexes closely track one another. Boechk reports cost inflation of approximately 17% compared to 14.5% for Statistics Canada. In 2000, Statistics Canada identified a sharp increase in costs 6.5%. This is consistent with industry experience. Boechk, however, reports inflation in 2000 of only 1.6%. The indexes appear to track one another during period of moderate expansion, but to diverge during the downturn and at acceleration points in the construction cycle. Statistics Canada / R.S. Means (Figure 4) As with the Boechk index, the Means index reports cost increases during the contraction years 1991-1992. This contrasts with Statistics Canada and Helyar. For the period 1993-1999, the R.S. Means index and the Statistics Canada 7City Average track one another closely. Means reports cost inflation of 15.6% during this period, while Statistics Canada estimates the 6-year inflation at 13.7%.

Figure 3: Statistics Canada vs. Boechk

Statistics Canada and R.S. Means Indices (1990=100) Statistics Canada: 7-City Average R.S. Means: Historical Cost Index

130 120 110 100 90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Means Index

Statistics Canada

Figure 4: Statiscis Canada vs. RSMeans

A Guide to Cost Sources

Comparison of Location Series


Location indexes are an important source of information to compare regional construction costs. Table 1 shows location indexes from eight publications for 12 cities, 4 of which are in Canada. Figure 5 shows the same information in graphical format. These cities were chosen to provide a reasonable geographic sampling as well as to represent major industrial centres. They have all been normalized so that Toronto=100. To fairly compare costs, an adjustment for the Canadian dollar has been made using the exchange rate of C$1.48 = US$1.00. The rightmost column shows the arithmetic average of the location indexes for each city from the publications. The average for each publication is shown under the index list. The bottom row of the table shows whether the location index could be considered an input index or an output index (as defined in the introduction). To facilitate trend analysis, the lowest index value for each location is marked with a single underline, and the highest value marked with a double underline. The values vary widely. Only two of the indexes are from Canadian firms, namely Helyar and Hanscomb. These publications do not provide indexes for US cities. Boeckh is based out of Germany, but has offices in Canada and US that gather information for their publication. KPMG is international and, like Boeckh, has offices in both Canada and US. The other indexes are published by US firms. Only Richardson is specific to industrial process plant construction while the others are general building construction. For this analysis, there was some difficulty getting indexes for all of the cities. In some cases, an index for a particular city was not available, so an available index for another city was used. For example, Richardson provides city indexes in their International Cost manual, but only publishes indexes for states in their Process Plant publication. For this reason, the US cities are represented by their index for the state. Similar substitutions were made for the KPMG data. San Diego was used for Los Angeles, Columbus for Cincinnati, Dallas-Fort Worth for Houston, Saginaw for Detroit, and Newark for New York. These substitutions were deemed reasonable at the time. Of the eight location indexes compared, only three, KPMG, Helyar and Hanscomb, are output indexes. RSMeans explicitly states that productivity is not considered in their location indexes. Saylor, Dodge, and Richardson each mention once in their literature that productivity is considered but do not indicate how. Richardson provides a productivity factor in their International Cost Guide, but it is the same for each Canadian city. Saylor uses the same productivity rate in the calculations of union installed costs and open shop installed costs, and assume that the same crew configuration is used in each location. It is therefore unlikely that they differentiate productivity rates in their location indexes. Dodge stated during their interview that constant productivity rates were used. Because all the publications provide indexes for the chosen Canadian cities, this discussion will first look at them. Then, A Guide to Cost Sources

the US cities will be included, which will require omitting Helyar and Hanscomb from the discussion.

Comparing Canadian Cities Only


All of the input indexes show Toronto as the most expensive Canadian city. Only one output index, Hanscomb, shows the same trend although the difference between them cannot be considered significant. All three output indexes indicate that Toronto and Montreal are approximately the same. Both KPMG and Helyar indicate Vancouver and Calgary are more expensive than Toronto, although KPMG is much higher. In fact, KPMG has the highest index for each Canadian city.
200 175 150 125 100 75 Toronto Montreal Calgary
Richardson RS Means Dodge KPMG Boeckh Hanscomb Saylor Helyar

KPMG, an output index, publishes the highest value for 7 of the cities and is the highest index on average. Richardson, an input index, is the lowest. Because of the small sample of output indexes (only 1), we cannot conclude that labour productivity varies significantly between these cities, and it has a dramatic effect on costs. It has yet to be determined if and to what degree productivity may differ. Although there an exchange rate of Can$1.48= US$1.00 has been applied, two US cities have indexes significantly lower (approximately 15%) than Toronto. These are Atlanta and Houston from Dodge and Richardson publications. RSMeans, however, published indexes for these two cities approximately 15% higher than Toronto. There does not appear to be any consistency in the indexes across publications, even those that are of the input type. To understand the sensitivity of the US location factors to the exchange rate used, the rate was varied until the average index for each of the US cities was equal to 100. This occurred when $1.00 US = Can $: Houston $1.41 Atlanta $1.38 Cincinnati $1.26 Chicago $1.14 Los Angeles $1.11 Detroit $1.08 Boston $1.06 New York $0.92

Vancouver

Los Angeles

Figure 5: Location Cost Indexes

Cincinnati

New York

Detroit

Houston

Chicago

Boston

Atlanta

Conclusion Comparing All Cities


This discussion does not include Hanscomb and Helyar as they do not provide indexes for the US cities, leaving KPMG as the only output index in the comparison. Using location indexes appears to be a gamble, and the result will vary significantly depending on the index used. There is no obvious consistency between the publications, even those of the same type. This is very concerning as major decisions may be based upon this information.

A Guide to Cost Sources

Table 1: Normalized Location Indexes

City Toronto Montreal Calgary Vancouver Houston Atlanta Cincinnati Chicago Los Angeles Detroit Boston New York Average Type of Index

Richardson 100 96 97 99 83 85 96 102 110 97 103 132 100.1 Input

Dodge 100 91 81 94 86 88 101 119 115 120 123 155 106.1 Input

Boeckh 100 89 82 92 107 100 115 149 141 134 144 180 119.4 Input

Saylor 100 89 87 94 132 123 132 132 148 135 135 153 121.7 Input

RS Means 100 92 87 96 118 117 122 146 144 139 154 176 124.3 Input

KPMG 100 100 140 124 104 128 140 140 200 176 172 138.5 Output

Hanscomb 100 98 96 95

Helyar 100 98 106 106

Average 100 94.1 97.0 100.0 105.0 106.9 117.6 129.5 133.2 137.4 139.3 161.4

97.2 Output

102.5 Output

Single Underline: lowest index value per city Double Underline: highest index value per city

A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
Publisher:
Boeckh, A Division of Thomson Canada Limited 100 Sheppard Ave. East Suite 460, Toronto, ON M2N 6N5 Tel: (800) 661-3619 Fax: N/A Website: http://www.boeckh.com

Years in circulation: Type of index:

66 years This guide provides unit costs for various building types with adjustments for building parameters and characteristics. Location multipliers for construction costs at various locations are provided to transfer unit costs to other locations. This publication provides insurance adjusters with estimates of the cost of replacing a building. It does not attempt to measure the market value of the building. The information may be used by owners for preliminary construction cost comparisons, but is not detailed enough to be of use to contractors. Of interest are the location multipliers that compare costs in different locations. 940 locations, 53 of which are Canadian cities: BC: Kamloops, Prince George, Vancouver, Victoria AB: Calgary, Edmonton, Lethbridge SK: Prince Albert, Regina, Saskatoon MB: Brandon, Winnipeg ON: Barrie, Hamilton, Kingston, Kitchener, London, Ottawa, Owen Sound, Peterborough, St. Catharines, Sarnia, Sault Ste. Marie, Sudbury, Thunder Bay, Timmins, Toronto, Windsor QC: Chicoutimi, Granby, Hull, Joliette, Montreal, Noranda, Quebec, Rimouski, St. Hyacinthe, St. Jerome, Sherbrooke, Sorel, Trois Rivieres NB: Bathurst, Fredericton, Moncton, Saint John NS: Bridgewater, Halifax, Sydney, Truro, Yarmouth

Intended use by:

Canadian City Coverage:

A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
PE: Charlottetown NF: Corner Brook, St. Johns

Other Publications:

Residential Building Cost Guide Mobile-Manufactured Housing Cost Guide High-Valued Dwelling Cost Guide Agricultural Building Cost Guide Apartment and Condominium Personal property Cost Guide

Description:

The Boeckh Cost Guide consists to two major sections: the baseline square foot building costs, and the location multipliers. The baseline for costs is Milwaukee WI in 1995. It was chosen because of its historically stable economy and its typical profile of national economic characteristics. Baseline Square Foot Building Costs Boeckh uses an inductive cost estimating method in which they collect elemental costs and combine them in stages to eventually represent a whole building. Boeckh provides square foot building costs in Milwaukee, WI for 120 different building models falling into 10 model types Lodging Offices Mercantile Restaurant/Recreation Professional Services Public Building Services Industrial Processes Basements/Miscellaneous A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
Depending on its superstructure construction type Frame Masonry Pre-Engineered Metal Steel Frame Protected Steel Frame Reinforced Concrete Frame Adjustment factors are available to account for other characteristics, such as: Exterior wall material Heating and cooling system type Miscellaneous (elevators, fire systems) Construction quality (economy, average, superior) Building area to perimeter ratio The following constants have been added to the total cost: 20% to account for combined overhead and profit of the general contractor and subcontractors 7% for architect and engineering fees 5% for contingencies The following have not been included: Local impact fees: these are taxes imposed by municipalities for new construction, but should not apply to reconstruction projects Fast track construction: it is assumed that standard design-construct practices are used. Boeckh recommends adding 10-15% for fast track projects Demolition, site work (clearing, paving, landscaping) Location Multipliers Once the base cost of the building is determined, it may be adjusted to a specific location and year using the location multipliers. Boeckh provides location multipliers for over 880 locations, categorized by US state and A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
zip codes and Canadian provinces and cities. For each location, nine multipliers are provided:
Frame, Masonry, Jointed Masonry Group I Group II Pre-Engineered Metal, NonCombustible Group I Group II Steel, Protected Steel, Masonry Non-Combustible, Modified Fire Resistive Group I Group II Reinforced Concrete Frame, Fire Resistive Group I Group II Building Items and Site Improvements All

Where Group I are structures with occupancy related to Services, Industrial, Processes, and Basements, and Group II are Lodging, Offices, Mercantile, Restaurant/Recreation, Professional Services, and Public Buildings. The location multipliers are calculated based on 115 elemental costs consisting of 19 building trade labour rates, 89 material prices, and 7 other applicable costs. Labour rates for 19 construction trades consisting of prevailing wages (union or open shop depending on the location and property type) plus fringe benefits are gathered from the locations. Wages include the base wage (journeyman) including vacation and holidays. Fringe benefits include health and welfare, pension funds, industry advancement funds, and apprentice training. In addition, workers compensation programs, contractors/builders liability insurance, social security and unemployment compensation are determined. Data sources include building trade councils, general contractor organizations, local unions and contractors by writing or telephone interviews. Material prices are collected from local suppliers. The costs of these items include local taxes, freight charges, and contractor discounts. National-supply centres distribute certain materials, and their cost is assumed constant. For each building model, elemental costs as a percentage of the total baseline cost in Milwaukee are calculated. The Boeckh example shows these proportions for the costs of a tree house: 40% Carpenter labour 25% 2x4 lumber A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
20% Plywood 10% Asphalt shingles 5% Paint

The local cost of each labour-hour and material unit is then weighted according to the model, summed, and normalized to the Milwaukee 1995 cost to calculate the location multiplier. Of the over 880 location multipliers provided, only 201 are calculated independently. The remainder are modified from a similar, neighbouring zip code using a predetermined hook-up factor which relates the neighbouring locations to the central location by a factor, say, 0.96 or 1.03. Periodically, the hook-up factors are reviewed for accuracy. The base building is assumed to be in a cold climate and a seismic zone 0. Additional factors are provided to account for special site conditions that are important in the subject location but not captured in the labour/material-based location multipliers. Multipliers for Canadian locations represent Canadian dollars.

Assumptions:

1. An allowance is included in the base costs for normal general contractor and subcontractor overhead and profit (O & H) combined and is equal to 20 percent. 2. An allowance is included in the base costs for Architectural fees and is equal to 7 percent. 3. An allowance is included in the base costs for contingencies and is equal to 5 percent. 4. The base cost assumes a seismic zone 0 and a cold climate region.

A Guide to Cost Sources

Boeckh Commercial, Institutional, Light Industrial Building Cost Guide General Information
Strengths:
1. Cover a large number of Canadian cities (53 cities). 2. No exchange rate is applied for the Canadian locations, which gives flexibility to apply a current or anticipated exchange rate. 3. Provides location and time multipliers. 4. The Boeckh publication recognizes three national building codes and the cost differentials due to building code requirements are taken into consideration. 5. The following factors are reflected in the multipliers: Engineering and architectural costs Building code requirements such as seismic design requirements Climate and weather conditions

Weaknesses:

1. Markup for general contractors and subcontractors, architectural costs, and contingencies are reflected as a constant percentage for all locations. 2. The following factors are not reflected in the location multipliers: Work regulation Access and transportation (site conditions) Market competitiveness condition and local discounting practices

3. The following costs are not reflected in the location multipliers: Land and related costs such as land surveys Managerial and supervision costs

A Guide to Cost Sources

Boeckh Commerical, Institutional, Light Industrial Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Time-location multipliers are published for each state and province over 10 years. Eight building structure types are detailed plys an overall building and site improvement multiplier. The multipliers take into account labour rates, material prices and other applicable costs such as taxes and insurance. Boeckh states that they apply a productivity adjustment.

Ontario Construction Secretariat: A Guide to Cost Sources

Boeckh Commerical, Institutional, Light Industrial Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes annual 1 Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Ontario Construction Secretariat: A Guide to Cost Sources

Boeckh Commerical, Institutional, Light Industrial Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency 0

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

Boeckh Commerical, Institutional, Light Industrial Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Dodge Unit Cost Guide General Information


Publisher:
Marshall & Swift 911 Wilshire Blvd. Los Angeles, CA 90017-3409 Tel: (213) 683-9000 Fax: (213) 683-9010 Website: http://www.marshallswift.com

Years in circulation:

12 years by Marshall & Swift (1988-present) 16 years by McGraw-Hill (1972-1988) Dodge cost indexes have been created since 1932

Type of index:

The Dodge Unit Cost guide provides: Elemental costs: detailed costs categorized by CSI Masterformat Equipment Data: daily, weekly and monthly rental rates Local Multipliers: Multipliers are provided for over 1000 locations in US and Canada These indexes are intended to assist contractors in developing bids and drop prices. Over 1000 locations of which 86 are Canadian: BC: Cranbrook, Kamloops, Kelowna, Nanaimo, Nelson, Penticton, Port Alberni, Prince George, Prince Rupert, Trail, Vancouver, Victoria AB: Calgary, Edmonton, Lethbridge, Medicine Hat, Red Deer SK: Moose Jaw, North Battleford, Prince Albert, Regina, Saskatoon MB: Brandon, Thompson, Winnipeg ON: Barrie, Belleville, Brampton, Brantford, Brockville, Cambridge, Guelph, Hamilton, Kingston, Kitchener, Lancaster, Lindsay, London, Niagara Falls, North Bay, Orillia, Oshawa, Ottawa, Owen Sound, Peterborough, Sarnia, Sault St. Marie, St. Catharines, Sudbury, Thunder Bay, Timmins, Toronto, Trenton, Waterloo, Windsor A Guide to Cost Sources

Intended use by: Canadian City Coverage:

Dodge Unit Cost Guide General Information


QC: Chicoutimi, Drummondville, Hull, Jonquiere, Laval, Montreal, Quebec City, Rimouski, Rouyn, Sept. Iles, Sherbrooke, Trios-Rivieres, Val d'Or NB: Bathurst, Edmundston, Fredericton, Moncton, St. John NS: Cape Breton, Dartmouth, Halifax, New Glasgow, Sydney, Truro PE: Charlottetown NF: Corner Brook, Gander, St. Johns NT: Yellowknife YT: Whitehorse

Other Publications:

Repair and Remodel Cost Guide Residential Cost Handbook Commercial Cost Handbook Electrical Cost Guide

Description:

The Dodge Unit Cost Guide contains construction costs organized by the CSI MasterFormat divisions. Hourly labour rates are gathered for the different trades in each city. Material and equipment costs are determined by contacting building product manufacturers, dealers, supply houses, distributors, and contractors. All the costs found in the Dodge Unit Cost Guide are U.S. national averages. The local multipliers are used to adjust the national average to the different locations. Material prices and wage rates are collected locally. Usually there are 3 sources for each location. A judgement is made on the information to exclude the outliers. An average is taken from the remaining data to represent each location. Markups (OH & P) are included and they vary by the CSI divisions and by trade. There are location multipliers for each division of the CSI Master-Format, and there is also an overall multiplier, which represents a weighted average of materials and labour. The weights of the overall local multiplier are the same for all the locations and over time. A Guide to Cost Sources

Dodge Unit Cost Guide General Information


Marshall & Swift monitors the areas specified in the publication for the required costs and rates on a quarterly basis. The guide is published annually. The local multipliers are provided quarterly. All taxes (PST and GST for the Canadian cities) are included. The range of error believed in the estimates of the location multipliers is (5 10)%. For the Canadian cities, the prices and rates are collected in local currency (No exchange rates are applied).

Assumptions:

1. Crew compositions are assumed constant over all locations. These crews are believed by the Dodge estimators to be typical crew compositions. The crew compositions are found in the crew data section. 2. All the productivity rates estimated for the crews and used in the calculations are derived from national averages. These productivity rates are considered constant for all locations. 3. Labour wage rates are Union wage rates.

Strengths:

1. Covers a large number of Canadian cities (86 cities). 2. There is an option of applying a location multiplier from a category specific to a certain component, or using the overall multiplier and apply it to an entire project. 3. No exchange rates are applied for the Canadian locations, which gives the flexibility to apply a desired exchange rate when comparing projects between the U.S. and Canada. 4. Estimated markups are added to the total costs. These are not a constant value or percentage for all locations; they vary by trade and CSI divisions.

A Guide to Cost Sources

Dodge Unit Cost Guide General Information


Weaknesses:
1. Only Union wage rates are used. 2. Crew compositions are constant in all locations. 3. Productivity is assumed constant for all locations, therefore, no differential productivity is reflected in the location multipliers. 4. The location multipliers do not reflect the following factors: Unique local requirements Regional variations due to specific building codes Climate and weather conditions Seismic design requirements Design styles and conventions Market competitiveness condition, and local discounting practices Access and transportation (site conditions) 5. The following are not reflected in the costs: Engineering and architectural costs Land related costs Land surveys Permit fees and taxes Payroll costs such as social security and payroll insurance Managerial and supervision costs 6. Markups do not reflect local competitive conditions.

A Guide to Cost Sources

Dodge Unit Cost Guide Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments The Local Multipliers are calculated for each of the 16 CSI Masterformat divisions plus an overall multiplier. Local Multipliers are based solely on prevailing wages and material costs within each of the regions. Multipliers are relatively detailed with several ZIP codes distinguished for each US state. Canadian Local Multipliers are organized by province and city.

Ontario Construction Secretariat: A Guide to Cost Sources

Dodge Unit Cost Guide Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes Collective agreements 3 Phone interviews and data collection semi annually Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Elemental costs provided for over 20,000 line items. They are based on labour and materials only (equipment costs not included). Overhead and profits are provided. Markups do not reflect local competitiveness across locations but vary by CSI Masterformat divisions and by trade. Elemental costs are based on single components. Their sum for an entire structure would likely exceed total costs because savings between elemental installations are not considered. Crew composition is based on the typical crew assumed by the Dodge estimators and is constant for all the locations. Costs are calculated as the average from 3 or more sources with outliers removed if necessary. The crew productivity rates are derived from the national averages, and are asumed the same for all the locations. Very few revisions on productivity from year to year.

Ontario Construction Secretariat: A Guide to Cost Sources

Dodge Unit Cost Guide Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 20 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective agreements

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Dodge does not specifically provide a labour index, but tracks labour costs in their crew component of the elemental and assembly costs.

Ontario Construction Secretariat: A Guide to Cost Sources

Dodge Unit Cost Guide Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency

Notes Dodge does not specifically provide a materials index, but tracks material costs in the elemental and assembly costs.

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 200

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 3 phone survey

Equipment rental rates are given on a daily, weekly, and monthly basis. For each type of equipment, several configurations are provided. For example, Air Compressor rates are lised for 15 different capacities for diesel-fueled, and 2 capacities for gas-fueled. It is expected that the Local Multipliers would be sufficient to convert these national average rental costs to individual locations.

Ontario Construction Secretariat: A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index General Information
Publisher:
Engineering News-Record McGraw-Hill Co., Two Penn Plaza, New York, New York 10121-2298 Tel: (212)-904-3418 Website: http://www.enr.com

Years in circulation:

Both indexes base-dated to 1913 Construction Cost Index commenced in 1920s Building Cost Index commenced in 1930s

Type of index: Intended use by: Canadian City Coverage: Other Publications:

Composite of four input costs: labour (skilled/unskilled), cement, lumber and steel. Contractors and developers - to estimate approximate changes in constructions over time in locations, not to compare across locations. Toronto and Montreal

The ENRs cost indexes are proprietary. The ENRs 20-city average (US only) is published weekly. Cityspecific data (including Toronto and Montreal) are published in the Dec. 1st issue.

A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index General Information
Description:
The ENR publishes two indexes. Both indexes are based on a similar methodology. Construction Cost Index: The CCI is a composite index based on specified quantities as follows: cement - 1,128 tones of bulk portland cement priced locally lumber - 1,088 board-ft of 2 x 4 lumber priced locally steel - 25 cwt of fabricated structural steel at the 20-city average Labour for the Construction Cost Index is assumed to be 200 hours of common labour (i.e., unskilled labour). Labour is priced at the 20-city average. Building Cost Index: The BCI uses the same material inputs and costs but alters the labour input to 68.38 hours of skilled labour. Skilled labour is the average wage paid to three trades bricklayers, carpenters and structural ironworkers. The 20-city average is used. Both indexes are based-dated to 1913. There have been no changes in the technical specifications (quantities and types of labour, quantities and types of materials). Wage costs in both indexes are the published union wage rate for the package, i.e., inclusive of nonstatutory benefits. Statutory payments are not included. As noted, prices for lumber and cement a local. The steel price is a national average. The national average is not weighted. Because the technical specifications of the indexes have not changed, the current relative weight of the components is a function of changes in prices and wages since 1913. Because labour costs, in the long run, tend to outstrip commodity prices, both indexes have a secular bias to be over weighted to the labour A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index General Information
component. The current weights are approximately at follows:
Labour Cement Lumber Steel CCI 78% 1% 10% 11% BCI 61% 27% 7% 2%

These weights are excessively skewed to the labour input. In general, the labour share of the labour-plusmaterials component of construction ranges from 30% in civil projects to 40% in ICI projects and 60% in repair projects. Changes in the timing of the index components affect the month-to-month variations. Steel prices and wage rates tend to change once per year. Cement prices change once or twice per year. By contrast, lumber prices can change monthly. Hence, the month-to-month variations in the indexes are largely determined by lumber prices, except in those months when wages or the prices of steel and cement change. There may also be lags in the incorporation into the index of changes. Consequently a moving average is more reliable as an indicator of underlying inflation trends than a point-over-point comparison. ENR does not recommend use of the indexes to derive cost comparisons across locations. The indexes are intended to show changes in costs over time at a location or over time for the 20-city average. ENR is more confident in the 20-city average than in individual city estimates. Typically only one source is used per location. ENR endeavors to use the same source over time. It is common for the ENR index to be referenced in construction contracts that provide for inflation adjustments. It is also common for the ENR index to be used to estimate the current cost of replicating a structure built in the past. Canadian data are estimated in C$ and are not converted. Consequently any attempt to derive a comparison between Toronto and Montreal and the 20-city US average would be invalid, as the exchange rate factor would not be taken into account.

A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index General Information
Assumptions:
1. Steel, Portland cement and 2 x 4 lumber are representative building materials. 2. An unweighted average of bricklayers, carpenters and structural ironworkers is representative of skilled labour. (Note that this excludes the mechanical trades).

Strengths:

1. There are comparatively few components in the index. This makes maintenance comparatively inexpensive. The methodology and the calculation of the index are published and are transparent. 2. There are no proprietary productivity assumptions.

Weaknesses:

1. The index measures input costs for labour and materials. The index does not measure in-lace costs. The latter take into account contractors mark-ups. 2. The index does not take into account the impact of equipment costs. 3. The labour component is over weighted and incorporates a secular bias to be increasingly over weighted. 4. The three materials selected to proxy the materials component of construction do not reflect the costs of mechanical systems or changes in finish materials (e.g., the shift from plaster to drywall).

A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index Location Indexes
Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Location indexes are based solely on input values. The index is based on cost of 1,128 tonnes of bulk portland cement, 1,088 board-ft of lumber, 25 cwt of structural steel and either 200 hours of common labour (CCI) or 68.38 hours of the average of three skilled trades (BCI)

Ontario Construction Secretariat: A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index Elements, Assemblies, and Buildings
Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes 0 Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Ontario Construction Secretariat: A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index Labour Cost Indexes
Labour Costs Tracked

Number Of Trades Tracked 4 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective Agreement 1 Same source consistently US: Monthly; Canada: Annual

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

Engineering News Record Building Cost Index and Construction Cost Index Materials and Equipment
Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked 200

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency Survey Weekly

Notes Each week, different material categories are published. For example, various types of pipe one week, then all wood items the next.

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscombs Yardsticks for Costing General Information


Publisher:
Produced by Hanscomb Limited, and published by R.S. Means Co., Inc. 40 Holly Street, Suite 900 Toronto ON, M4S 3C3 Tel: Fax: Website: (416) 487-3811 (416) 487-5043 http://www.hanscomb.com

Years in circulation: Type of index: Intended use by: Canadian City Coverage:

5 years This publication provides installed-in-place costs for 8 Canadian cities for comparing construction costs between these locations. Intended to be used as a costing tool by estimators for design work in the early stages of a project. It is not designed as a bidding tool. This is a Canadian publication with 8 locations covered: BC: Vancouver AB: Calgary MB: Winnipeg ON: Ottawa, Toronto QC: Montreal NS: Halifax NF: St. Johns N/A

Other Publications:

A Guide to Cost Sources

Hanscombs Yardsticks for Costing General Information


Description:
The publication has four main sections: 1. Current market prices. The Current market prices section contains prices organized according to the CSI MasterFormat Divisions. Prices in this section include all materials, labour to install, transportation, equipment costs, and site overheads and profit for work done by subcontractors. Provincial taxes (PST) are included in Ottawa, Toronto, Winnipeg and Vancouvers rates. Goods and Services Tax (GST), Harmonized Sales Tax (HST) and Quebec Sales Tax (QST) are not included. 2. Composite unit rates. This section contains composite rates classified according to the Canadian Institute of Quantity Surveyors (CIQS) breakdown. The costs are built up from the current market prices. This section is to be used in preparing preliminary estimates or for comparative purposes. 3. Gross building costs. The gross building costs section contains a general guide to overall cost of 35 building types. Average costs are shown for each building element with its proportion to the total cost. High and low prices are also presented per square foot or square meter. 4. Labour rates. The labour rates section contains rates from 23 different trades. The rate for each trade includes the base rate, vacation & statutory holidays, health & welfare and pension, industry and union funds. All the rates listed in this section are union rates. All sections present prices and rates for the 8 Canadian cities listed above, except for the gross building costs section, which shows the prices as national averages. The data required to produce this publication is divided by a number of persons in each of the 8 cities. Each person will make telephone interviews with industry contacts and contractors to get reasonable estimates of installed prices. Market experience and judgement is then used to determine the most appropriate prices. The prices collected are put-in-place prices. Hanscomb takes particular care with the Toronto cost estimates, because it represents almost half of A Guide to Cost Sources

Hanscombs Yardsticks for Costing General Information


their market. They also use Toronto as a benchmark to assess cost estimates obtained from other cities. Hanscomb used to produce a cost index (Cost Trends ). This exercise was abandoned approximately five years ago. Hanscomb cited three reasons: 1. The index was costly to maintain especially, in obtaining the correct and accurate prices, and calculating the weighting of the components of the index. 2. There is a liability associated with the incorrect usage or application by the industry. 3. Hanscomb believes that Statistics Canada does the same job in tracking changes in the construction industry costs. Statistics Canada also has the advantage of being a published source, which enhances its creditability when, relied on for litigation purposes.

Assumptions:

1. All contractors are unionized contractors.

Strengths:

1. This publication provides unit rates and costs for the different locations without the need to use a location factor or multiplier thus eliminating any inaccuracy involved in using such factor. 2. The costs and rates in this publication reflect the following factors if compared between the different locations: Building code requirements Local market conditions Differential labour productivity Supervision and management costs

Weaknesses:

1. All costs are unionized cost. No reflection for the non-unionized costs. 2. Not all the trades are covered in the labour rates section.

A Guide to Cost Sources

Hanscombs Yardsticks for Costing General Information


3. Not all the labour rates are available in the labour rates section. About 20% of the labour rates are not available. 4. In case of the gross building costs: Prices are national and must be adjusted to local conditions Costs for site work are not included because of the wide variation regardless of gross floor area 5. The costs and rates in this publication does not reflect the following factors if compared between the different locations: Climate and weather conditions Access and transportation Soil conditions Market competitiveness condition and local discounting practices Engineering and architectural costs Insurance and bond costs Land surveys Permit fees

A Guide to Cost Sources

Hanscomb's Yardsticks for Costing Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments All costs presented for the 8 Canadian cities. Installed and complete costs provided.

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb's Yardsticks for Costing Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes contractors 3 phone interviews annual Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Metric and Imperial Current Market Prices: Includes: -material, labour, overhead, profit and PST -does not include GST, QST, or HST Metric and Imperial Composite Unit Rates: -represent average rates for average conditions -are built up from the current market prices Gross Building Costs -35 building types listed -per square metre and per square feet costs -national average costs and must be translated to individual locations -low, average, and high prices given -low and high represent 25%ile and 75%ile respectively -site work costs not included

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb's Yardsticks for Costing Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 24 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency collective agreements 1 data collection annual

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Total wage rate given for 24 trades in 8 cities. Rates include (all cities except Montreal): -base rate -vacation and statutory holidays -health, welfare, pension -industry, union funds Montreal includes: -base rate -vacation, sttautory holidays -finge benefits -CCQ, AECQ, other funds

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb's Yardsticks for Costing Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index (Parity Index) General Information


Publisher:
Hanscomb 1175 Peachtree St, NE Suite 1650, Atlanta, Georgia 30309-9998 Tel: Fax: Website: (404) 881-0533 (404) 881-1341 http://www.hanscombusa.com

Years in circulation: Type of index:

Approximately 10 years Survey of in-place construction cost ranges to a prime contractor for industrial projects, showing approximate changes in costs over time and approximate differences in costs across locations. The baseline is Chicago, IL. Exchange rates are applied at the market rate current at the time of publishing. Early stage planners of industrial projects who are working within +/- 25% estimation ranges. 29 locations of which only one is Canadian: Toronto

Intended use by: Canadian City Coverage: Other Publications: Description:

The Parity Index is published in the HanscombMeans Report, which is available in PDF format from the companys website. The Parity Index compares costs to a prime contractor for in-place construction of a standard industrial building across 29 cities in all regions of the world. The standard industrial building is a single storey, ownerbuilt and owner-occupied manufacturing facility with a large office component. The standard industrial building comprises approximately 26 component specifications covering all major trades.

A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index (Parity Index) General Information


Technical specifications are held constant across locations and over time. The following table summarizes the technical specifications: Cost Model Parameters Single-Storey Manufacturing Facility, Owner-Built, Owner-Occupied
Statistics: Gross Floor Area Floor Roof Height Volume Perimeter Exterior Wall Area Specifications: Foundations Structure Bay Size Roof Exterior Wall Fenestration Finishes Mechanical Electrical Office 4,400 m2 4.90 m 26,560 m2 n/a 750 m2 Office Spread footing Girders 6mx6m Adhered single-ply EPDM Metal siding Aluminum w/ insulated glass Standard Heated, vented & AC Recessed fluorescent light fixtures Manufacturing 4,400 m2 8.55 m 81,225 m2 n/a 2,425 m2 Total 4,400 m2 n/a 102,785 m2 555 3,175 m2

Manufacturing Spread footing Girders 12 m x 18 m Adhered single-ply EPDM Metal siding None Minimal Heated, vented Metal halide high bay light fixtures; copper bus duct

Because the parity index estimates in-place costs for each of the 26 components, the index does not separate trade contractors costs for labour, machinery, materials, overhead or profit. An estimate is factored into the index for a general contractors mark-up over costs. Using in-place costs implicitly takes account of differences in productivity across locations and over time as well as differences in market

A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index (Parity Index) General Information


conditions. Costs for components are estimated as a range. Typically the mid-point of the range is selected, unless the local pricing source assigns a greater probability to one end of the distribution. Allowances for trade contractors overhead costs and profits are included in the in-place cost estimates. The index is market focused. Consequently, the index makes no distinction between union and non-union trade contractors. In-place cost estimates exclude: Development costs Recoverables (GST, VAT) Engineering and architectural fees Site work costs (roads, parking, landscaping, and utilities) The impact of specifically local factors (e.g., building codes, piling requirements, seismic requirements) Local differences in preferred materials Regulatory requirements (or lack thereof) The index is revised quarterly. Location surveys are undertaken semi-annually. Typically, the index relies on only one source per city. All costs are expressed relative to Chicago costs, which are the base for the index. The Hanscomb-Means International Construction Cost Index is published in two formats. The first is in local currency. This removes the influence of exchange rates and allows a user to employ whatever exchange is preferred. This is the parity index. The second format uses the most recent month-end exchange rate, which is applied to the parity index. This is the international construction cost index in which all costs are based on US$ at most recent exchange rates. Hanscomb does not regard a 3% difference across locations as significant. A difference of 5% would reflect cost differences that are real, but may not be significant or enduring. However, a cost difference of 10% or more is judged to be significant.

A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index (Parity Index) General Information


Hanscomb considers the index more reliable as a comparison of costs at a specific location over time than across locations. In part, this arises from differences in local factors that affect construction costs, but which are excluded from the parity index (e.g., piling, seismic requirements or finish standards).

Assumptions:

1. It is assumed that the standard industrial building, per the specifications in the 26 components, is constructed without modification in all locations. 2. It is assumed that the standard industrial building is constructed on the outskirts of an urban area. Transportation factors that might affect costs in another type of location are excluded, therefore, by assumption.

Strengths:

1. The Hanscomb-Means International Construction Cost Index is a purchasing power parity index. Consequently the index isolates the impact of exchange rates from the effect of local inflation (or deflation) factors. 2. The Hanscomb-Means International Construction Cost Index is the only international cost comparison that isolates narrowly defined construction costs. Other international comparisons incorporate land costs, site costs and other costs. Typically other international indice also present their estimates as a square-metre (or square-foot) costs that are derived from comparisons of dissimilar buildings. By contrast, the Hanscomb-Means International Construction Cost Index uses an unchanging, standard building as the basis for its estimates.

A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index (Parity Index) General Information


Weaknesses:
1. The Hanscomb-Means International Construction Cost Index does not take into account specifically local factors that can have a significant impact on final construction costs. These factors include: Foundation requirements for piling Seismic requirements for modification to structural design Specific local building code requirements pertaining to use of materials and design requirements Site work requirements Regulatory requirements, especially environmental requirements Local differences in preferred materials

2. As an output index that tracks the cost of in place construction, the Hanscomb-Means International Construction Cost Index does not isolate the relative roles of changes in the prices of materials, the cost of labour, charges for equipment use or changes in contractors overheads and profit margins. 3. The Hanscomb-Means International Construction Cost Index maintains fixed specifications for the standard building over time. Consequently the index does not reflect changes in building design that occur over time.

A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments It measures to some extent differences in market and bidding conditions. Relative productivity is captured

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes 0 Personal interviews semi-annually Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

The index makes no distinction between union and non-union labour. Markup is included for subcontractors only.

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency 0

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

Hanscomb-Means International Construction Cost Index Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Helyar Construction Cost Guide General Information


Publisher:
Helyar & Associates 212 King St West Toronto, ON M5H 1K5 Tel: 416-204-1100 Fax: 416-204-1200 Website: www.helyar.com

Years in circulation: Type of index:

Over 20 years The Construction Cost Guide publishes an annual range estimate of in-place construction costs, expressed as cost per sq. ft., for 34 building types across 8 Canadian cities. Index trends in Toronto are published for: Commercial building costs Institutional costs Industrial, apartment, and housing building costs Consumer price index Index of Canadian Centres given for 44 locations

Intended use by: Canadian City Coverage:

Early stage project planners, conceptual estimates BC: Vancouver AB: Calgary, Edmonton ON: Ottawa / Hull, Toronto QC: Montreal NS: Halifax

Other Publications:

N/A

A Guide to Cost Sources

Helyar Construction Cost Guide General Information


Description:
The Helyar Construction Cost Guide estimates the in place cost of constructing 34 building types in Toronto, Montreal, Vancouver, Edmonton, Calgary, Ottawa/Hull and Halifax. Construction costs are expressed as cost per sq. ft. Cost estimates are developed by Helyar and Assoc., based on their current experience as project managers and cost estimators. The guiding formula may be summarized as follows: Output Cost = Labour Cost + Materials Cost + Allowance for Contractors Overheads + Opportunity Cost where variables are defined and estimated as follows: 1. Labour Cost: Quantity estimated by Helyar for building type Wage cost derived from Statistics Canada and/or current collective agreements 2. Materials Cost: Quantity estimated by Helyar for building type Prices derived from Statistics Canada and/or current information from managing projects 3. Contractors Overheads Based on current information from managing projects 4. Opportunity Cost: Based on current information from managing projects In tight labour market conditions, will reflect over-rate charges for labour The most unstable component of output cost is opportunity cost. In depressed market conditions, the need to cover overheads drives opportunity cost close to zero. By contrast, in a buoyant market, capacity utilization approaches 100%. In these conditions, the inelasticity of supply allows significant increases in mark-up. Consequently, the output price of construction is more unstable than the price of labour and materials.

A Guide to Cost Sources

Helyar Construction Cost Guide General Information


The Helyar Construction Cost Guide excludes land costs, financing costs, legal costs, architectural and engineering costs and permit costs. Site costs are estimated separately. The following table lists the building types tracked by the Helyar Construction Cost Guide: Parking Garages: Office Buildings (70% above grade / 30% below grade):
o o o o o under 5 stories 5-10 stories 10-20 stories 20-30 stories over 30 stories o o free standing (above grade) underground

Stores:
o o o o o strip plaza enclosed mall anchor / department store supermarket discount store

Residential Condominiums / Apartments: o basic quality o medium quality o high quality Townhouses: o row (medium quality) o stack (medium quality) o walk-up timber frame (medium quality) o walk-up timber frame (high quality) Houses: o speculative (basic quality) o speculative (medium quality) o speculative (high quality) Light Engineering Factories and Warehouses: o 10-20 k sq. ft o 20-50 k sq. ft. o 50-150 sq. ft.

Schools: o elementary o high school o technical / vocational school Nursing Homes Hospitals o chronic care / long-term care o acute treatment / acute care

Hotels:
o o o budget 4-star, full-service luxury

A Guide to Cost Sources

Helyar Construction Cost Guide General Information


Component specifications for building types (e.g., partitions, fenestration, mechanical requirements) are based on project management experience. Completed estimates are compared to current and recent projects managed by the firm. All estimates are strongly judgment based. Cost estimates are expressed as a range that is approximately +/- 10% from the mean. Costs reflect, to some degree, local factors that entail design-related costs. Helyar does not distinguish between union and non-union labour in its estimate of costs. An Index of Canadian Centres provides estimated relative cost differences (Toronto = 100) for 44 different locations. This is a judgement based composite of construction costs based on approximately 200 projects that the company typically will have under current or recent management.

Assumptions:

1. It is assumed that the same structure is constructed without modification in all locations. 2. Transportation factors that might affect costs beyond the norm are excluded, e.g. , the higher costs that are typically associated with construction in a city core as opposed to the outskirts of an urban centre.

Strengths:

1. The Helyar Construction Cost Guide takes account of opportunity cost and is strongly sensitive to the companies perception of local conditions as they bear on opportunity cost. 2. The Helyar Construction Cost Guide covers a wide range of structures that are broadly representative of the construction market. As such, the Guide is useful to early stage planners estimating budget requirements and assessing the relative costs of build to specification vs. lease. 3. The Helyar Construction Cost Guide compares costs of constructing a total structure in place, i.e., inclusive of opportunity costs.

A Guide to Cost Sources

Helyar Construction Cost Guide General Information


Weaknesses:
1. The Helyar Construction Cost Guide is strongly judgement based. The Guide can be taken as indicative of general trends but should not be used for precise comparisons across locations. In particular, the range which is typically +/-10% from the mean should discourage strong reliance on the Guide as a comparison of construction costs across locations. 2. The Index of Canadian Centres does not reflect differences in the composition of construction activity across sectors and building types. The index should not be relied upon for anything more than an approximate gauging of relative construction costs. For most construction projects, there are a significant number of project-specific or contractor-specific factors that affect final cost. Often, these will outweigh the location differences suggested by the Index. 3. The specifications for building types are adjusted over time, as appropriate to current construction practices. Consequently, for some buildings, comparisons over time are comparisons of structures that have themselves changed.

A Guide to Cost Sources

Helyar Construction Cost Guide Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Unit costs (per sq. ft.) for the various building types are given for each city. These costs are in the form of ranges. Index provided for additional cities: 25 in Ontario, 4 in Quebec, 3 in Maritimes, 4 in Prairies, 5 in BC, and 3 in Territories.

Ontario Construction Secretariat: A Guide to Cost Sources

Helyar Construction Cost Guide Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes Collective Agreement, Statistics Canada annual Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Data derived from Helyar projects and Statistics Canada. Components are not published. Cost ranges give user information of variance due to project characteristics.

Ontario Construction Secretariat: A Guide to Cost Sources

Helyar Construction Cost Guide Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency 0

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

Helyar Construction Cost Guide Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
Publisher:
KPMG 777 Dunsmuir St Vancouver, B.C., V7Y 1K3 Tel: Fax: Website: (604)-691-3410 (604)-691-3340 http://www.kpmg.ca

Years in circulation: Type of index:

Since 1994 Survey of in-place costs (including land and construction) and operating costs (including labour, electricity, financing costs and taxes) for nine industries (electronics, food processing, medical devices, metal fabrication, pharmaceuticals, plastics, telecommunications equipment, packaged software, and advanced software). Costs provided for at least three cities in each of the G-7 and other major economies. Early stage planners of industrial projects with an international scope in terms of location. Policy planners wishing to assess the impact of tax policy and labour costs on overall competitiveness. 64 cities, 25 of which are Canadian BC: Kamloops, Kelowna, Vancouver AB: Calgary, Edmonton SK: Regina, Saskatoon MB: Brandon, Winnipeg ON: Hamilton, Kingston, Kitchener, London, Mississauga, Ottawa, Sarnia, Toronto, Windsor QC: Montreal, Quebec, Sherbrooke NB: Moncton NS: Halifax PE: Charlottetown NF: St. Johns

Intended use by: Canadian City Coverage:

A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
Other Publications: Description:
Published in an International Edition and a G-7 edition. A detailed Results Book is also published. The KPMG international cost comparison estimates the cost of constructing and operating nine different types of manufacturing operations in 64 cities. City coverage includes 25 Canadian cities, 21 American cities and 15 European cities and 3 Japanese cities. Construction costs are the costs to the owner-operator. Construction costs include both land costs and completed building costs. Implicitly these costs include the general contractors mark-up. The costs of equipment are standard across locations. Land and building specifications are common across locations. Operating costs are divided into divided into location-sensitive costs and costs which are not location sensitive. Location-sensitive operating costs include: Labour Utilities (both power and telecomm) Transportation (based on an analysis of likely shipping patterns) Interest (based on standard debt/equity ratios by industry) depreciation 2 Taxes (including incentives that are firmly embedded in law and are not subject to negotiation or discretion) Operating costs are not sensitive to location are raw material inputs. Labour costs reflect direct wages and salaries, prevailing employee benefit costs, payroll taxes and other statutory contributions. Labour requirements are estimated for each industry in terms of 36 generic job descriptions. This allows for variation across industries in the nature of labour requirements. Labour requirements in each industry are assumed standard across locations. Operating costs are estimated over a 10-year horizon and reflect a scale-up of operations. Using common
2

Although depreciation costs are expressed as a standard percentage of fixed capital, depreciation costs are considered location-sensitive because their actual amount is a function, in part, of the cost of initial construction, which is location sensitive.

A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
revenue estimates for each location, the study estimates both before tax and after-tax return on invested capital. For each industry, it is assumed that an operation will have at least 90 employees and annual revenues greater than US$ 10 million. The eight industries covered by the cost comparison vary in their capital intensiveness, labour intensiveness and the nature of the labour they require. The eight industries are: Electronics Medical devices Pharmaceuticals Packaged software Advanced software Food processing Metal fabrication Plastics Telecommunications equipment The building characteristics for a manufacturing industry are: Build-to-suit 10% finished office space All mechanical systems (HVAC) installed throughout 50,000 100,000 sq. ft., depending on industry 26-30 ft clear span ceiling height, depending on industry Loading-level dock Standard 500 lb./sq. ft. floor loading For a service industry, it is assumed that space is leased. Building characteristics are: Class A Suburban location Building costs are expressed as finished cost per square foot to the owner-occupier. Building costs include

A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
all soft costs such as construction financing, design and development charges. Land is priced at cost per acre to buy a lot of 5-10 acres. Site must be suitable to manufacturing, located in a light-to-medium industrial park in a suburban area, fully serviced with good highway access. Colliers International gathers building and land costs for KPMG. Construction costs are estimated without reference to union or non-union construction based on prevailing market conditions. Cost are expressed in US dollars using current exchange rate. A separate analysis is done to illustrate the appreciation in the exchange that would be required to eliminate competitive advantage. Cities are ranked in terms of their initial investment costs for land and building and their annual operating costs. Ranking is expressed as an index in which the base (100) is the average of the eight US cities. City rankings are shown for each industry and also for the 8-industry average. A separately published Results Book provides details on rate of return on invested capital by location showing detailed balance sheet and income statements. Both operating and initial investment specifications can change over time. Consequently the index should be used as a current cost comparison rather than for an analysis over time. Key current findings are: 1. 40-45% of total costs are location sensitive, 2. Canadian cities enjoy a significant competitive advantage in all industries, 3. Canadas competitive advantage would be eliminated by an appreciation of the exchange rate of approximately 18% from C$1.00 = US$0.67. 4. Construction costs are lowest in Canada.

A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
Assumptions:
1. Location specific factors in construction (e.g., piling and seismic requirements) are not explicitly identified in the specifications, but may be incorporated into cost estimates. 2. Interest costs are based on local market conditions. Some companies will source capital internally in a market other than where they locate a facility. 3. Operating cost components are standardized based on industry averages. 4. Transportation costs are standardized based on assumed shipping patterns for raw materials and end product. 5. Explicit productivity assumptions are factored into operating costs. implicit. For construction, productivity is

Strengths:

1. The KPMG international cost comparison takes into account all major factors affecting a location decision. 2. By separating and detailing both initial investment costs (land and building) and operating costs, the KPMG international cost comparison allows an analysis of how sensitive the comparisons are to changes in either components of operating costs or initial investment costs. 3. The KPMG international cost comparison allows analysis of comparative advantage by industry type. 4. The KPMG international cost comparison identifies the impact of land costs.

Weaknesses:

1. Important industries (from an Ontario perspective) are not reflected in the KPMG international cost comparison. These include chemical processing and aeronautics. Auto assembly is also typically on a scale of operation that exceeds the specifications of the KPMG model.

A Guide to Cost Sources

KPMG, INTERNATIONAL COST COMPARISON ANALYSIS: The Competitive Alternative General Information
2. The KPMG international cost comparison does not allow an analysis of the impact of union vs. nonlabour on construction costs. 3. The KPMG international cost comparison does not allow a separation of construction costs from soft costs.

A Guide to Cost Sources

KPMG, International COST COMPARISON ANALYSIS: The Competitive Alternative Location Indexes
Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Along with the location index, they rank each location according to cost.

Ontario Construction Secretariat: A Guide to Cost Sources

KPMG, International COST COMPARISON ANALYSIS: The Competitive Alternative Elements, Assemblies, and Buildings
Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes 1 Colliers-McKay Offices Annual Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

The KPMG Index compares costs to build and operate specific types of structures. All costs are included. Construction cost is cost to owner-operator, inclusive of all mark-ups.

Ontario Construction Secretariat: A Guide to Cost Sources

KPMG, International COST COMPARISON ANALYSIS: The Competitive Alternative Labour Cost Indexes
Labour Costs Tracked

Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

KPMG, International COST COMPARISON ANALYSIS: The Competitive Alternative Materials and Equipment
Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter General Information


Publisher:
Richardson Engineering Services, Inc. 1742 S. Fraser Drive PO Box 9103 Mesa, AZ 85214-9103 USA Tel: Fax: Website: (480) 497-2062 (480) 497-5529 http://www.resi.net

Years in circulation: Type of index:

Approximately 30 years The Richardson Construction Trend Reporter is primarily a labour cost resource. The Richardson Labor Cost Index covers 16 trades for each location. The Richardson Composite Crew index has 16 crews for each location. The Construction Cost Index is a compilation of 17 industry indexes including Bureau of the Census, ENR, Turner Construction, over time, and 63 material prices from one location. The baseline is a fictional average location called Richardson, USA. Canadian values are in Canadian dollars. These indexes are for estimators and contractors. 120 locations, 7 of which are Canadian: BC: Vancouver AB: Calgary, Edmonton MB: Winnipeg ON: Toronto, Windsor QC: Montreal Process Plant Construction Cost Estimating Standards General Construction Cost Estimating Standards International Cost Factors Location Manual

Intended use by: Canadian City Coverage:

Other Publications:

A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter General Information


Description:
The Richardson Construction Cost Trend Reporter consists of 3 sections: 1. Richardson Labour Cost Index: 120 U.S. cities and 7 Canadian cities 16 trades Union and open shop (Davis-Bacon) hourly labour rates Union fringe benefits include all the benefits such as health and welfare, pensions, vacations Davis-Bacon fringe benefits Richardson labour index for each of the Union wage rates and the Davis-Bacon rates normalized 2. Richardson Composite Crew Rates: 120 U.S. cities and 7 Canadian cities 18 composite crews Union and open shop (Davis-Bacon) hourly manhour rates plus RES index Crew consists of 10 journey level tradespeople (no apprentices): 1 foreperson 7 journeypersons 2 labourers 1 equipment (depending on the trade) Hourly rate reflects a mix of trades and their contribution to one hour Adjustment to hourly rate should be made if crew composition or skill level changes 3. Construction Cost Trends: (trends over time) Construction Cost Indexes normalized so that 1992=100 Combines several publicly available indexes including ENR, Boeckh, Bureau of Reclamation, Turner Construction Company, and Bureau of Census Indexes of Producer Prices of Materials Used in Construction for 63 materials and material groupings over time Interest rates

A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter General Information


Contract Construction Employment provides number of employees on payrolls by type of contractor New US Nonresidential Construction Put in Place gives annual construction values by building type

The Davis-Bacon wage rates and fringe benefits are determined by the United States Department of Labour (for the U.S. cities only) to be the prevailing rate for a particular craft or labour classification in a given area. The Davis-Bacon rates constitute the minimum wages and fringe benefits payable on federal and federally assisted buildings construction projects. For the Canadian cities, the rates are in local currency so there are no exchange rates applied. The target level of confidence for all the Richardson values is 85% (i.e. that the user can be 85% confident that the actual cost will be the published value or less). In other words, Richardson does not use averages (50% confidence) to provide a level of confidence in the published data. It is important to note that this publication is for the comparison of labour rates only. Differences in productivity and installed costs are not reflected. There is no mention how the differences in labour rates correlate to productivity, safety, or labour stability in that region.

Assumptions:

1. There is sufficient local labour availability that a crew of average quality can be dispatched. 2. The Richardson standard crews consist only of skilled labour (no apprentices). 3. The management is sufficiently skilled in planning to avoid shortages of materials and equipment. 4. The Richardson crew composition is the same for all the locations.

A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter General Information


Strengths:
1. The data in this report provides a mean of comparing individual labour and crew wage rates and the related fringe benefits for a large number of cities. 2. Cost index trends from other publications are compiled here. The indexes are presumed to reflect an average US location, but would vary from source to source. The compilation does provide a good overview of index ranges.

Weaknesses:

1. This report compares union and open shop labour and crew costs for various cities. It is important to remember that only labour costs are reflected and not productivity or installed prices. 2. The same crew composition is assumed for all the locations. Estimators must make allowances for the impact on productivity of diverging from the standard crews, e.g., including apprentices, using labour of less quality owing to tight labour market conditions, absenteeism and over-manning and varying the size or composition of the crew. 3. The differential productivity between the locations is not reflected in the RES index. 4. The management system is assumed to be sufficiently skilled, but the costs of a management system are not reflected in the total wage rates.

A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Richardson Labour Cost Index: labour wage rates for both union and Davis-Bacon labour organized by city and trade. Richardson Composite Crew Index: wage rates for both union and Davis-Bacon labour orbanized by city and trade crews.

Ontario Construction Secretariat: A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter Elements, Assemblies, and Buildings
Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes 1 Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Data collection from industry index publications annually

These are not Output cost indexes of other index publishers are compiled and normalized using 1992 = 100. Assumptions are dependent on the index source.

Ontario Construction Secretariat: A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 16 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective agreements, Davis-Bacon wa 1 Data collection annually

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

The wage rates are provided for individual labour and composite crews. They consist of: For union wage rates -local union no. -basic hourly rate -H & W Pens. -Fringes -Total hourly rate -Index -Union wage rate expiry date For Davis-Bacon wage rates -Basic hourly rate -Fringes -Total hourly rate -Index Canadian locations are union rates only. Worker's compensation is not included in the wage rate because it is highly dependent on experience and can vary widely.

Ontario Construction Secretariat: A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter Labour Cost Indexes


It is assumed that the crews are efficient and can complete the required work with an efficient production rate. It is assumed that all the composite crew members consist of journey trades (no apprentices). Adjustments should be made to account for any changes in the crews from the standard crews. Standard crew consists of 1 foreman, 7 journey trades, 2 labourers, and 1 operator. Standard crew is the same in every location.

Ontario Construction Secretariat: A Guide to Cost Sources

The Richardson Construction Cost Trend Reporter Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked 63

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 1 Data collection monthly

Notes Indices of Producer Prices of Materials Used in Construction: data for 63 materials or material groups from the US Department of Labor, Bureau of Labour. Indexes normalized with 1982-100.

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Richardson International Cost Factors Location Manual General Information


Publisher:
Richardson Engineering Services, Inc. 1742 S. Fraser Drive PO Box 9103 Mesa, AZ 85214-9103 USA Tel: (480) 497-2062 Fax: (480) 497-5529 Website: http://www.resi.net

Years in circulation: Type of index:

Approximately 30 years The Richardson International Cost Factors Location Manual provides indexes that compare the cost changes over international locations with an average, fictional location called Richardson, USA as a base index. Richardsons Construction Locations Factors are formulas used to adjust U.S. based estimates for process plant industry construction to each country. They attempt to meet the needs of owners, contractors, and consultants by providing economic, political, and regulatory information about each location as well as costs. 21 locations of which 5 are Canadian: BC: Vancouver AB: Calgary MB: Winnipeg ON: Toronto, Windsor QC: Montreal Process Plant Construction Cost Estimating Standards General Construction Cost Estimating Standards The Richardson Construction Cost Trend Reporter

Intended use by:

Canadian City Coverage:

Other Publications:

A Guide to Cost Sources

Richardson International Cost Factors Location Manual General Information


Description:
This manual contains cost multipliers for major cities in 21 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Ireland, Japan, Kuwait, Singapore, South Africa, Spain, U.A.E., Mexico, Poland, Saudi Arabia, United Kingdom, Venezuela. The base for comparison between locations is Richardson USA, a fictitious town having average US characteristics and costs. A fixed process plant design consisting of both a building and of a plant structure is used for the analysis. The total cost of the plant is based on the weighted sum of the cost of materials (local and imported), plant equipment (local and imported), and the local labour rates. A Labour Productivity Factor is determined for each city, and is incorporated in the final location factor to account for differences in productivity. Overheads and markups are incorporated.
General Factors BLDNG = BLABOUR = BLDNGFM = PROC SYS = PLABOUR = LI = IMI = LIM = % Building Cost of Total Process Project % Building Labour Cost % Building Field Material Cost % Process Plant Cost of Total Process Project % Process Labour Cost Labour Index Import Material Index Local Material Index 1.00 x Local Rates / Base Rates x Labour Productivity Factor 1.00 + Duty + Freight + VAT + Other Local Prices / Base Prices Labour Location Factor Engineering Equipment Location Factor Field Material Location Factor Location Factor BLDNG x %BLABOUR + (PROC SYS x % PLABOUR) x LI (PROC SYS x %PCFM x %FMI x IMI) + (%PROC SYS x PCEE x EEL% x LIM) (%PROC SYS x %PCFM x % %FMI x IMI) + (%PROC SYS x %PCFM x FML% x LMI) + PCEE = PCFM = EEL = EEI = FML = FMI = % Process Engineered Equipment Cost % Process Field Material Cost % Engineered Equipment Local % Engineered Equipment Imported % Field Material Local % Field Material Imported

Index Formulas

LI = IMI = LIM = Location Factor Formulas LLF = EELF= FMLF = LF = LLF = EELF= FMLF =

A Guide to Cost Sources

Richardson International Cost Factors Location Manual General Information


LF = (%BLDNG x %BLDNGFM x %FMI x IMI) + (%BLDNG x %BLDNGFM x %FML% x LMI) LLF + EELF + FMLF

Richardson tries to provide a target level of confidence for all the Richardson publications of 85%. The costs and rates are collected from owners (from the owner perspective) unlike other sources that collect the data from suppliers and contractors. All costs are converted to US dollars, with the exchange rate used for the conversion listed at the bottom of the appropriate page. Below are some samples of the Richardson International Cost Factors. Labour Productivity City, Country Factor Sidney, Australia 1.6 Guangzhuo, China 3.0 Bombay, India 3.0 Mexico City, Mexico 1.7 Rio de Janeiro, Brazil 1.9 Calgary, Canada 1.2 Toronto, Canada 1.2

Location Factor 1.24 1.01 1.00 1.00 1.10 1.00 1.03

Additional information for each country is provided including: General Information People and ethnic divisions History Government and political conditions Foreign business legal organization of businesses, foreign ownership, patents Taxation Regulatory agencies Trade regulations Environmental issues Employment unemployment rates, major unions, labour relations, worker rights

A Guide to Cost Sources

Richardson International Cost Factors Location Manual General Information


Economy currency exchange Crew Rates

Unfortunately, this information appears to be at least 6 years outdated. This could cause significant misinterpretations if someone is viewing the information for the first time.

Assumptions:

1. A fixed percentage (10%) is added to the delivered prices to account for the general contractor markup. The estimators must vary this percentage according to the local conditions. 2. Open shop conditions are assumed. 3. The Labour Productivity Factor reflects typical labour saving construction tools and equipment used in the host country.

Strengths

1. The Richardson International Cost Factors Location Manual provides means of comparing construction costs among international locations. 2. Relative productivity between locations is reflected through the Labour Productivity Factors. 3. Some design requirements (e.g., piling, seismic requirements, etc) are taken into account in the location factors. 4. The following factors are included in the Location factors: Availability of skilled labour Climatic conditions Shipping costs for unavailable materials from various ports in the U.S. Environmental issues Import duties

A Guide to Cost Sources

Richardson International Cost Factors Location Manual General Information

Weaknesses

1. Although Richardson provides significant information about each country, it tends to be outdated. For example, the economic and political information on Canada appears to be at least 6 years old. 2. It is very risky to represent all the market conditions for a specific country by one factor. It could be better to apply a range. 3. An exchange rate is used in the calculations of the location factors, so the estimator must make any appropriate adjustments. 4. Local purchase requirements might affect the cost of materials. 5. Cost differences might arise from local regulations within the same country. 6. The markup percentage is assumed constant for all locations. 7. There is no differentiation between Union and Non-union labour in this index. All the costs are based on open shop conditions.

A Guide to Cost Sources

Richardson International Cost Factors Location Manual Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments differences in codes, requirements, conditions, and productivity are captured. Also differences in the designs are taken into consideration. Captures differences in code requirements, weather and limatic conditions, local requirement.

Ontario Construction Secretariat: A Guide to Cost Sources

Richardson International Cost Factors Location Manual Elements, Assemblies, and Buildings
Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes 100 survey annually Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

It is assumed that all the composite crew members consist of skilled labour (no apprentices). It is also assumed that there are sufficient local skilled labour and efficient management system to do the job. For subs, a 10% mark-up is added. The estimator must adjust this percentage in the light of the local conditions.

Ontario Construction Secretariat: A Guide to Cost Sources

Richardson International Cost Factors Location Manual Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 0 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency 0

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Ontario Construction Secretariat: A Guide to Cost Sources

Richardson International Cost Factors Location Manual Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


Publisher:
R.S. Means Company, Inc. A Construction Market Data Group Company Construction Plaza, 63 Smiths Lane Kingston, MA 0264-0800 Tel: (800) 448-8182 Fax: (781) 585-8868 Website: www.rsmeans.com

Years in circulation: Type of index:

60 years The Means Building Construction Cost Data provides local multipliers that represent relative construction factors for material costs, installation costs as well as the weighted average for total in-place costs for each CSI MasterFormat Division. These multipliers can be used for comparing costs between cities as well as across time for the same city. Installation and Materials indexes are published. This publication is intended to assist estimators and contractors to estimate their jobs in the early planning stages of a project. 930 locations of which 62 are Canadian: BC: Kamloops, Prince George, Vancouver, Victoria AB: Calgary, Edmonton, Fort McMurray, Lethbridge, Lloydminster, Medicine Hat, Red Deer SK: Moose Jaw, Prince Albert, Regina, Saskatoon MB: Brandon, Protage la Prairie, Winnipeg ON: Barrie, Brantford, Cornwall, Hamilton, Kingston, Kitchener, London, North Bay, Oshawa, Ottawa, Owen Sound, Peterborough, Sarnia, St. Catharines, Sudbury, Thunder Bay, Toronto, Windsor QC: Cap-de-la-Madeleine, Charlesbourg, Chicoutimi, Gatineau, Laval, Montreal, Quebec, Sherbrooke, Trois Rivieres NB: Bathurst, Dalhousie, Fredericton, Moncton, Newcastle, Saint John NS: Dartmouth, Halifax, New Glasgow, Sydney, Yarmouth

Intended use by: Canadian City Coverage:

A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


PE: Charlottetown, Summerside NF: Corner Brook, St. John's YT: Whitehorse NT: Yellowknife

Other Publications:

Assemblies Cost Data Building Construction Cost Data Concrete & Masonry Cost Data Construction Cost Indexes Contractor's Pricing Guide: Framing & Rough Carpentry, and Residential Detailed Costs, and Residential Square Foot Costs Electrical Change Order Cost Data Environmental Remediation Cost Data

Heavy Construction Cost Data Interior Cost Data Labor Rates for the Construction Industry Mechanical Cost Data Open Shop Building Construction Cost Data Plumbing Cost Data Repair & Remodeling Cost Data Site Work & Landscape Cost Data Square Foot Cost Data

Description:

The Means Building Construction Cost Data contains average construction cost indexes for 305 U.S. and Canadian cities. The cities listed represent geographical areas with the densest population centers. All costs found in this publication represent U.S. national averages and are given in U.S. dollars. The national average is the average construction costs for the 30 major cities in U.S. (Also known as the 30 City Average). Means city cost indexes are used to adjust the national average costs to a particular location. The city cost indexes for Canada can be used to adjust the U.S. national averages to local costs in Canadian dollars. The Means Building Construction Cost Data is updated on annual basis, while the city cost indexes are updated and published on a quarterly basis. The city cost indexes use the national average costs as basis for comparison between locations. The Means Construction Cost Indexes publication also contains historical city cost indexes which use January 1, 1993 as a base line for comparing costs across time. The city cost indexes can be used for the following applications: Compare costs from city to city A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


Compare a specific citys construction costs with the national average Update and adjust construction cost data based on a national average

The city cost indexes are updated quarterly. Thus, this will be particularly useful in updating a bottom line estimate that has been on the shelf for a couple of quarters. The Historical city indexes can be used for the following applications: Estimating and comparing costs in the same city for different years Estimating and comparing costs in different cities for the same year Estimating and comparing costs To create the city cost indexes, R.S. Means researched the building types most often constructed in the United States and Canada. Nine different types of buildings were combined to create a composite model. These nine building types were chosen to form a composite model, because there is no one type building that can completely represent the building construction industry. The following structures were chosen to make up the composite model: Factory, 1 story Office, 2-4 story Store, retail Town hall, 2-3 story High school, 2-3 story Hospital, 4-8 story Garage, parking Apartment, 1-3 story Hotel/Motel, 2-3 story The exact material, labour and equipment quantities are based on detailed analysis of these nine building types, then each quantity is weighted in proportion to expected usage. The material prices, hourly labour rates and equipment rental rates are combined to form this composite building that represents as closely as possible the actual usage of materials, labour and equipment used in the North American building construction industry.

A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


There are approximately three sources for the cost data in each city. An average of the sources is used to represent each location index. The range of error believed in the estimates of the city cost indexes is 5%. The components of the index for the composite model consists of: Specific quantities of 66 commonly used construction materials. Specific labour hours for 21 building construction trades Specific days of equipment rentals for 6 types of construction equipment (normally used to install the 66 material items by the 21 building trades). The cost data in this publication is represented in two ways: Bare cost and Total cost including O&P (Overhead and Profit). For each item of the CSI MasterFormat divisions, the following costs are represented. Material bare costs Material costs are collected by contacting manufacturers, dealers, distributors, and contractors in each city. Material costs dont include sales taxes. Labour bare costs Labour wage rates are determined from labour union agreements where available. When labour union wage rates are not available in a certain city, the associated general contractors are contacted and an average for the wage rates is considered. Labour rates reflect productivity based on actual normal conditions. These figures include time spent during a normal workday on tasks other than actual installation, such as material receiving and handling, mobilization at site, site movement, and cleanup. The labour costs represent the inplace costs for installing the required materials. Equipment bare costs Equipment costs are collected from contractors, suppliers, dealers, manufacturers, and distributors. Equipment costs include rental and operating costs under normal use. The operating costs include parts and A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


labour for routine servicing such as repair and replacement of pumps, filters, etc. Normal operating expendables such as fuel, lubricants, tires, etc are included. Extraordinary operating expendables with highly variable wear patterns such as diamond bits and blades are excluded. Total cost The total cost is the sum of the Bare costs of material, labour and equipment. Total cost = Material bare cost + Labour bare cost + Equipment bare costs Total cost including O&P Total cost including O&P = (Material bare cost x 10%)+ (Labour bare cost x 10%) + (Equipment bare costs x 10%) General conditions, when applicable, should also be added to the Total cost including O&P. The costs for the general conditions are listed in division 1. General conditions for the subcontractors may range from 0% to 10% of the Total cost including O&P. For the general contractors, costs for the general conditions may range from 5% to 15% of the Total cost including O&P, with a figure of 10% as the most typical allowance. For the Canadian cities, the prices are collected in the local currency (No exchange rate is applied).

Assumptions:

1. The labour productivity rates assumed are considered as the standard or typical productivity rates. These rates are constant for all the cities. 2. Productivity rates are developed over an extended period so as not to be influenced by abnormal variations and reflects a typical average. 3. Overhead and profit for the subcontractor is assumed to be 10% of the total labour, material, and equipment bare costs. A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


Strengths:
1. Covers a large number of Canadian cities (57 cities) 2. There is an option of applying an index from a category specific to a certain component, or using overall index and apply it to the whole project. 3. No exchange rate is applied for the Canadian cities, which gives the flexibility to apply a desired exchange rate when comparing projects between the U.S. and Canada.

Weaknesses:

1. Productivity is assumed to be constant for all locations. Therefore, no differential productivity is reflected in the city cost indexes. 2. The city cost indexes does not reflect the following factors: Unique local requirements Competitive conditions Regional variations due to specific building Automation codes Restrictive union practices Climate and weather conditions Managerial efficiency Seismic design requirements Access and transportation Design styles and conventions Soil conditions 3. The following costs are not reflected in the city cost indexes: Engineering and architectural costs Land and related costs Land surveys Permit fees Taxes A Guide to Cost Sources

RSMeans Building Construction Cost Data General Information


Safety costs Managerial and supervision costs

4. Overhead and profit is assumed constant for all locations, which does not reflect the local market for each city. Additional adjustments will be required to reflect local market conditions.

A Guide to Cost Sources

RSMeans Building Construction Cost Data Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments RSMeans clearly states that productivity is not measured between locations.

Ontario Construction Secretariat: A Guide to Cost Sources

RSMeans Building Construction Cost Data Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 21 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes Collective agreements 3 Mailed surveys quarterly Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Average productivity rates, same in all locations. Union wage rates are used from as many locations as possible, because it is easier to collect. If open shop is more dominant, Davis-Bacon rates are used or open-shop contractors are contacted to determined the going rates. There are almost 15,000 sources (data suppliers). They try to maintain at least 3 suppliers per location per cost item. Judgement is required to deal with the outlier data instead of just taking the average. Installation costs include labour wage rates and equipment rental costs. Markups are national averages and vary by trade.

Ontario Construction Secretariat: A Guide to Cost Sources

RSMeans Building Construction Cost Data Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 21 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective agreements 3 Mailed surveys quarterly

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Union wage rates are used from as many locations as possible, because it is easier to collect. If open shop is more dominant, Davis-Bacon rates are used or open-shop contractors are contacted to determined the rates. There are almost 15,000 sources (data suppliers). They try to maintain at least 3 suppliers per location per cost item. Judgement is required to deal with the outlier data instead of just taking the average. Installation costs include labour wage rates and equipment rental costs. For open-shop contractors, the average of the wages collected is used excluding outliers. Markups are national averages and vary by trade.

Ontario Construction Secretariat: A Guide to Cost Sources

RSMeans Building Construction Cost Data Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked 66

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 3 Mailed surveys quarterly

Notes Expert judgement is used to remove outlier data instead of just taking the average.

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Saylor Current Construction Costs General Information


Publisher:
Saylor Publications, Inc. 9420 Topanga Canyon Blvd. Suite 203 Chatsworth, CA 91311 Tel: (818) 718-5966 (800) 642-3352 Fax: (818) 718-8024 Website: www.saylor.com

Years in circulation: Type of index:

38 years The Saylor Current Construction Costs provides costs for Union and Open Shop trades, 23 materials, 21 subcontractor specialties, and a Major Cities Cost Relationship Index for 125 cities. Costs are based on San Francisco, CA. These indexes are for estimators working for contractors and consulting engineers. 120 locations of which 5 are Canadian: BC: Vancouver AB: Calgary MB: Winnipeg ON: Toronto QC: Montreal Residential Construction Costs Remodeling/Repair Construction Costs Commercial Square Foot Building Costs Residential Square Foot Building Costs

Intended use by: Canadian City Coverage:

Other Publications:

A Guide to Cost Sources

Saylor Current Construction Costs General Information


Description:
The Current Construction Costs publication contains six main sections: 1. Wage Rate Recap Includes wage rates for 31 trades Union and open shop Includes benefits, supervision, overhead and profit 2. Material/Labour and Subcontractor Time Indexes Started in 1967 (Index = 100) 4 construction types (concrete, steel, wood frame, and combination) information for 5 previous years 3. Material Time Indexes Unit costs for 23 construction materials Assumes minimum quantity 4. Major Cities Cost Relationship Index 125 U.S. and Canadian cities Uses San Francisco, California as the base city Indexes are computed from the analysis of both wage rates only (no material or equipment costs are included in the analysis or computation of indexes) 5. Construction Costs Organized according to 16 CSI MasterFormat divisions Costs of the elemental items are broken down by material cost and labour (union and open shop) installation cost Material cost includes equipment, equipment rental, material and factory fabrication, plus profit and overhead Installation is defined as field installation and erection with applied subcontractors overhead, profit, payroll taxes and insurance 6. Assembly Costs Arranged by 11 CSI MasterFormat divisions Each assembly derived from construction cost section Complete building cost determined by adding the applicable assemblies

A Guide to Cost Sources

Saylor Current Construction Costs General Information


Material prices and rates are gathered from suppliers catalogues. Markup percentages vary by trade and differ between Union and Open shop where markup percentages for the Open shop trades are higher than those of the Union trades. The supervisory labour costs vary by trade and differ between Union and Open Shop. For the Open shop, the supervisory costs are slightly higher as a percent of the labour cost. For the Canadian Cities Relationship Indexes, costs are quoted in local currency (No exchange rates are applied).

Assumptions:

1. The same crew composition and productivity is assumed for the Union and Open shop. Only the wage rates differ. 2. Crew composition and productivity are assumed constant over all locations.

Strengths:
1. This publication differentiates between the Union and the Open shop, and provides separate installation costs. 2. No exchange rates are applied for the Canadian locations, which gives the flexibility to apply an appropriate exchange rate when comparing projects between the U.S. and Canada. 3. The Major Cities Cost Relationship Index reflect the following factors: Managerial and supervision costs.

Weaknesses:
1. The location indexes are derived from labour only i.e. they assume material costs are constant across all locations. Although the publication mentions that productivity is considered, it was stated during the interview that productivity is not considered.

A Guide to Cost Sources

Saylor Current Construction Costs General Information


2. The Major Cities Cost Relationship Index does not reflect the following factors: Unique local requirements Regional variations due to specific building codes Climate and weather conditions Seismic design requirements Design styles and conventions 3. The same crew composition is assumed for both Union and Open Shop crews. This does not reflect all of the differences between them.

A Guide to Cost Sources

Saylor Current Construction Costs Location Indexes


Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments Major Cities Cost Relationship Index: No account is taken for the productivity differences between locations. Only direct labour wage rates (hourly rates) are collected from the different locations and used to calculate the index. There is an attempt to maintain at least two sources for each location. The most probable value is used instead of the average if there are outliers. Commercial Square Foot Building Costs: Square foot costs are provided for 65 building types with 5 exterior finishes over each of 4 earthquake zones. These costs include GC overhead and profit, and architectural fees. This section is an excerpt of the Commercial Square Foot Building Costs publication.

Ontario Construction Secretariat: A Guide to Cost Sources

Saylor Current Construction Costs Elements, Assemblies, and Buildings


Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 31 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes Collective agreements, Labour brokers 1 Personal interviews annual Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Elemental and Assembly costs are detailed and categorized by CSI Masterformat. Costs are provided for: -elemental or assembly measurement unit -material cost -union installation cost -total union cost (material + installation) -open shop installation cost -total open shop cost (material + installation) Installation costs between union and open shop are proportional to differences in wage rates and not to productivity differences. Markup is added to the unit rates as a percentage which is determined from finished projects. Markup percentages for open-shop contractors are higher than those for union contractors. Commercial Square Foot Building Costs: Square foot building costs for 65 building types, each with 5 exterior finish/frame type combinations. Costs are presented for 4 earthquate zones, as shown on included map of US. These costs are used to evaluate cost tradeoffs for different designs and materials.

Ontario Construction Secretariat: A Guide to Cost Sources

Saylor Current Construction Costs Labour Cost Indexes


Labour Costs Tracked

Number Of Trades Tracked 31 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective agreements, Labour brokers 2 Phone calls and data collection annual

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Union Wage Rate Recap and Open Shop Wage Rate Recap consist of: -base wage -total fringe (union only) -payroll taxes -supervision -workers comp. -overhead & profit -total All information is based on San Francisco Supervisory Factor: A percentage is assumed for the supervisory costs (0.96-1.72 %). Supervisory costs are in general higher for open shop labour when calculated as a percent of the base wage, but is generally lower in hourly costs.

Ontario Construction Secretariat: A Guide to Cost Sources

Saylor Current Construction Costs Materials and Equipment


Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked 23

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 2 Phone interviews annual

Notes Material costs are based on San Francisco prices and are tracked over time.

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
Publisher:
Statistics Canada - Prices Division 13-D2, Jean Talon Building Ottawa K1A 0T6 Tel: 613-951-3390 Website: www.statcan.ca

Years in circulation: Type of index: Intended use by:

Current ICI buildings index since 1981. There are predecessor indexes. See below These indexes should be used only to compare changes in costs across regions and types of construction, not differences in absolute costs. They were developed for: 1. Price deflators for estimating the real value of construction output for the National Accounts 2. Industry use
Index Construction Inputs: Materials (various) Wages Financial Machinery Construction Outputs: Residential: New Housing Apartment Non-Residential Office Warehouse Shopping Centre School Type of Pricing Selling Prices Union Rates BoC Rate Selling Prices Pricing Frequency Monthly Monthly Monthly Quarterly Coverage National 22 Cities National National

Canadian City Coverage:

Model Model Model Model Model Model

Monthly Quarterly Quarterly Quarterly Quarterly Quarterly

20 Cities 7 Cities 7 Cities (Halifax, Montreal, Ottawa, Toronto, Calgary, 7 Cities Edmonton, Vancouver) 7 Cities 7 Cities

A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
Factory Trades Fabricated Structural Steel Pre-cast Concrete Engineering: Highways Utilities o Electric o Telecom

Model Model Model Purchase Prices Modified Input Purchase Prices

Quarterly Quarterly Semi-Annual Annual Annual Annual

7 Cities 3 regions 3 regions 9 provinces (excl PE) National National

Other Publications: Description:

Various. See Statistics Canada catalogue. Statistics Canada publishes three types of construction price indexes. Input Prices: monitor changes in the cost of labour, machinery and building materials. Labour costs are union rates, both straight wage and inclusive of benefits. The selected rate is typically the ICI rate for each trade. Model Prices for Construction Outputs: estimate the cost of various model structures by pricing the in-place contractors price for various components. This procedure is used for estimating changes in construction costs in apartment buildings and ICI buildings. Bid Price for Construction Outputs: estimate the cost for certain types of engineered construction based on unit bid prices. This procedure is used for certain types of engineering construction (e.g., highways).

Input Prices: Input prices are based on regular surveys of suppliers. Wage costs are prevailing union wages (direct wages and benefits). Wage costs do not include statutory contributions to EI, WCB, CPP, EHT, etc.

A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
Model Prices for ICI Buildings: Statistics Canada estimates costs for six model buildings: Apartment Building 7 stories with penthouse used for mechanical systems 53 units 4,900 m 2 2-level basement parking brick face / aluminum siding and stucco Office Building 10 stories - 16,500 m 2 basement parking brick veneer and glazed aluminum curtain wall Warehouse 1 storey, concrete slab-on-grade - 3,809 m 2 Shopping Centre L-shaped suburban mall concrete slab-on-grade - 1,895 m 2 Light Factory 1 storey 7,910 m 2 Secondary School 3 stories 20,000 m 2 basement parking brick veneer and glazed aluminum curtain wall Approximately 200 components are priced for each model. These components represent approximately 60% of total costs. Component prices are in-place costs, inclusive of contractors overhead and profit margin. A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
Components are divided into four major trade divisions architectural, structural, mechanical and electrical plus the general contractors overhead and profit. Excluded from component costs are: Capitalized services legal, engineering and architectural Financing cost GST Land costs Landscaping The same structure is used across locations. Local differences in codes (if applicable) or seismic requirements are not taken into account. Multiple prices are elicited from quantity surveyors, consultants and contractors. For the model apartment building, for example, in Toronto, 45 different sources are used. For mechanical and electrical trades, the main sources of price information are suppliers of construction materials and equipment to these trades. Overhead, productivity and profit information is derived through discussions with trade associations and unions. Many sources are applicable to more than one type of structure. For ICI structures, in Toronto, approximately 110 sources are surveyed Models are revised every 10-15 years. If codes change, the specifications will be revised for the relevant components. The office, light factor and school are based on 1991 specifications. The warehouse and shopping centre are based on 1981 specifications. The union/non-union composition of the survey panel depends on the amount of construction generally performed by each type of contractor. The indexes cannot be used to compare absolute cost levels across locations. The indexes can be used to compare changes in costs across locations and across building types.

A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
Bid Prices Engineering Bid prices are drawn from actual bids registered with provincial and municipal governments and with utilities. Bid prices are typically expressed in terms of price per standard unit of output.

Assumptions:

1. Changes in construction technology proceed slowly and do not jeopardize a model-based index that is updated every 10-15 years. 2. The composition of ICI construction does not change sufficiently to make the models selected unrepresentative.

Strengths:

1. The model ICI building cost estimates are published quarterly. 2. The length of time of the survey and the consistency of the methodology allow time series analysis and a comparison of the different behaviour of input and output prices over the course of the economic cycle.

Weaknesses:

1. For each of the segments of the ICI sector, comparatively few model structures are employed. In the institutional segment of ICI, the representative structure is a secondary school. This underestimates the impact of changes in mechanical construction costs in structures, such as hospitals, that are significantly more mechanical-intensive. 2. The indexes should only be used to compare changes in construction costs across cities. The indexes cannot be used to compare absolute construction costs. 3. The ICI indexes may over-estimate on-site construction costs by not taking sufficient account of the trend to use pre-fabricated components that require only installation labour.

A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) General Information
4. The indexes do not reflect the diversity in architectural specification (especially in regard to building envelope)

A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) Location Indexes
Location Factor Published

Soft Costs Included Design Modified to Local Conditions Same Weighting Of Index Components Over Locations GeneralComments

Ontario Construction Secretariat: A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) Elements, Assemblies, and Buildings
Elemental Installations Assembly Installations Complete Structures Number Of Trades Tracked 20 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Notes Collective Agreement or Survey 100 Interviews Monthly Individual Location Costs Costs Specific To One Location National Average Costs Supplementary Benefits Constant Productivity Rates Same Crew Composition Supervisory Factor Markup Factor

Ontario Construction Secretariat: A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) Labour Cost Indexes
Labour Costs Tracked

Number Of Trades Tracked 20 Union Wage Rates Open Shop Wage Rates Wage Rate Source Number Of Sources Data Collection Method Update Frequency Collective Agreement 100 Interview Quarterly

Costs for Individual Locations Costs Specific To One Location Costs are National Averages Same Crew Composition Supplementary Benefits Included Constant Productivity Rates Supervisory Factor Included Markup Factor

Notes

Labour costs are tracked for all trades. Number of sources varies by location. In Toronto over 100 sources.

Ontario Construction Secretariat: A Guide to Cost Sources

Statistics Canada Construction Price Statistics (Cat. No. 62-007-XPB) Materials and Equipment
Materials Tracked Individual Location Costs Costs Specific To One Location National Average Costs Number Of Materials Tracked Notes 0

Same Materials Across Location Number Of Sources Data Collection Method Update Frequency 0

Equipment Tracked

Individual Location Costs Costs Specific To One Location National Average Costs Number Of Equipment Tracked Notes 0

Same Equipment Across Locations Number Of Sources Data Collection Method Update Frequency 0

Ontario Construction Secretariat: A Guide to Cost Sources