Cost Indexes

City Adjustments RJ1010-010

General: The following information on current city cost indexes is calculated
for over 930 zip code locations in the United States and Canada. Index
figures for both material and installation are based upon the 30 major city
average of 100 and represent the cost relationship on July 1, 2013.
In addition to index adjustment, the user should consider:
1. productivity
2. management efficiency
3. competitive conditions
4. automation
5. restrictive union practices
6. unique local requirements
7. regional variations due to specific building codes
The weighted-average index is calculated from about 66 materials and
equipment types and 21 building trades. The component contribution of
these in a model building is tabulated in Table J1010-011 below.
If the systems component distribution of a building is unknown, the
weighted-average index can be used to adjust the cost for any city.

Table J1010-011 Labor, Material, and Equipment Cost Distribution for Weighted Average Listed by
System Division
Division No. Building System Percentage Division No. Building System Percentage
A Substructure 6.2% D10 Services: Conveying 4.3%
B10 Shell: Superstructure 18.8 D20-40 Mechanical 22.7
B20 Exterior Closure 11.6 D50 Electrical 11.5
B30 Roofing 2.9 E Equipment & Furnishings 2.3
C Interior Construction 15.5 G Site Work 4.2
Total weighted average (Div. A-G) 100.0%
How to Use the Component Indexes: Table J1010-012 below shows how adjusted for New York, NY. Indexes for other cities are tabulated in Division
the average costs obtained from this book for each division should be RJ1030. These indexes should also be used when compiling data on the
adjusted for your particular building in your city. The example is a building form in Division K1010.

Table J1010-012 Adjustment of “Book” Costs to a Particular City

Systems New York, NY
Division System City Cost Cost Book Adjusted City Cost Cost Book Adjusted
Number Description Index Factor Cost Cost Index Factor Cost Cost
A Substructure 143.5 1.435 $ 100,800 $ 144,600
B10 Shell: Superstructure 132.6 1.326 278,400 369,200
B20 Exterior Closure 137.8 1.378 188,700 260,000
B30 Roofing 129.3 1.293 41,600 53,800
C Interior Construction 131.8 1.318 268,600 354,000
D10 Services: Conveying 108.5 1.085 53,700 58,300
D20-40 Mechanical 126.4 1.264 333,300 421,300
D50 Electrical 141.1 1.411 186,500 263,200
E Equipment 104.1 1.041 28,200 29,400
G Site Work 122.4 1.224 79,300 97,100
Total Cost, (Div. A-G) $1,559,100 $2,050,900
Alternate Method: Use the weighted-average index for your city rather than
the component indexes. For example:
(Total weighted-average index A-G)/100 x (total cost) = Adjusted city cost
New York, NY 1.311 x $1,559,100 = $2,044,000

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Cost Indexes

City Adjustments RJ1020-010

City to City: To convert known or estimated costs from one city to another, The table below lists both the Means City Cost Index based on January 1,
cost indexes can be used as follows: 1993 = 100 as well as the computed value of an index based on January 1,
2014 costs. Since the January 1, 2014 figure is estimated, space is left to
Unknown City Index write in the actual index figures as they become available through either the
Unknown City Cost = Known Cost ×
Known City Index quarterly Means Construction Cost Indexes or as printed in the Engineering
News-Record. To compute the actual index based on January 1, 2014 =
For example: If the building cost in Boston, MA, is $2,000,000, how much 100, divide the Quarterly City Cost Index for a particular year by the actual
would a duplicated building cost in Los Angeles, CA? January 1, 2014 Quarterly City Cost Index. Space has been left to advance
L.A. Cost = $2,000,000 × (Los Angeles) 107.3 = $1,825,000 the index figures as the year progresses.
(Boston) 117.6

Table J1020-011 Historical Cost Indexes

Historical Current Index Historical Current Index Historical Current Index
Cost Index Based on Cost Index Based on Cost Index Based on
Year Jan. 1, 1993 = 100 Jan. 1, 2014 = 100 Year Jan. 1, 1993 = 100 Jan. 1, 2014 = 100 Year Jan. 1, 1993 = 100 Jan. 1, 2014 = 100
Est. Actual Est. Actual Actual Est. Actual Actual Est. Actual
Oct 2014* July 1999 117.6 58.0 July 1981 70.0 34.5
July 2014* 1998 115.1 56.8 1980 62.9 31.0
April 2014* 1997 112.8 55.6 1979 57.8 28.5
Jan 2014* 202.7 100.0 100.0 1996 110.2 54.4 1978 53.5 26.4
July 2013 201.2 99.3 1995 107.6 53.1 1977 49.5 24.4
2012 194.6 96.0 1994 104.4 51.5 1976 46.9 23.1
2011 191.2 94.3 1993 101.7 50.2 1975 44.8 22.1
2010 183.5 90.5 1992 99.4 49.1 1974 41.4 20.4
2009 180.1 88.9 1991 96.8 47.8 1973 37.7 18.6
2008 180.4 89.0 1990 94.3 46.5 1972 34.8 17.2
2007 169.4 83.6 1989 92.1 45.5 1971 32.1 15.8
2006 162.0 79.9 1988 89.9 44.3 1970 28.7 14.2
2005 151.6 74.8 1987 87.7 43.3 1969 26.9 13.3
2004 143.7 70.9 1986 84.2 41.6 1968 24.9 12.3
2003 132.0 65.1 1985 82.6 40.8 1967 23.5 11.6
2002 128.7 63.5 1984 82.0 40.4 1966 22.7 11.2
2001 125.1 61.7 1983 80.2 39.5 1965 21.7 10.7
䊲 2000 120.9 59.6 䊲 1982 76.1 37.6 1964 21.2 10.5

To find the current cost from a project built previously in either the same To Project Future Construction Costs: Using the results of the last five
city or a different city, the following formula is used: years average percentage increase as a basis, an average increase of 4.4%
Current HCI × CCI (City X) could be used.
Present Cost (City X) = × Former Cost (City Y) The historical index figures above are compiled from the Means Construction
Previous HCI × CCI (City Y)
Index Service.
For example: Find the construction cost of a building to be built in San
Francisco, CA, as of January 1, 2014 when the identical building cost
$500,000 in Boston, MA, on July 1, 1968.
Jan. 1, 2014 (San Francisco) = (San Francisco) 202.7 × 122.5 × $500,000 = $4,240,000
(Boston) 24.9 × 117.6
Note: The City Cost Indexes for Canada can be used to convert
U.S. national averages to local costs in Canadian dollars.

*Historical Cost Index updates and other resources are provided on the following website.
http://www.reedconstructiondata.com/rsmeans/chgnotice/456321

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