RSMeans is the most widely used construction cost database in North America. Published by Gordian, RSMeans provides unit cost data for thousands of construction tasks — from concrete footings to electrical panels to roofing systems — adjusted for local market conditions across hundreds of cities and counties.

For contractors bidding government work, RSMeans is often a requirement. For everyone else, it is a valuable tool for checking estimates, developing budget numbers, and understanding how your costs compare to national benchmarks. Here is what you need to know to use RSMeans effectively.

What RSMeans Is (and What It Is Not)

RSMeans is a cost database — a collection of unit costs for construction tasks based on national average labor, material, and equipment costs. It is not a substitute for a detailed estimate based on actual project conditions, current supplier quotes, and local labor rates.

RSMeans is most useful for:

• Budget estimates — early-stage cost estimates when detailed drawings are not yet available
• Government estimates — independent government cost estimates (IGCEs) that require RSMeans-based pricing
• Benchmarking — checking your estimates against national averages to identify potential errors
• Change order pricing — when the contract requires RSMeans-based pricing for changes

RSMeans is less useful for:

• Competitive bidding — RSMeans costs are national averages that may not reflect your local market conditions
• Specialty work — RSMeans does not cover every construction task, particularly specialty or custom work
• Current material prices — RSMeans is updated annually, but material prices can change significantly between updates

How RSMeans Data Is Organized

RSMeans data is organized by the CSI MasterFormat system — the same division structure used in most construction specifications. Each line item in RSMeans includes:

CSI number — The MasterFormat division and section number for the work item.

Description — A description of the work item, including the unit of measure (LF, SF, CY, EA, etc.).

Crew — The crew composition assumed for the work — the number and type of workers and equipment.

Daily output — The quantity of work the crew can complete in a standard 8-hour day.

Labor hours — The labor hours per unit of work, derived from the daily output.

Bare costs — The cost of material, labor, and equipment per unit, before overhead and profit.

Total including O&P — The total cost per unit including overhead and profit at standard markups.

Location Factors

RSMeans costs are based on national averages. To apply RSMeans costs to a specific location, you must apply a location factor — a multiplier that adjusts the national average cost to reflect local labor rates, material costs, and market conditions.

Location factors are published in RSMeans for hundreds of cities and counties across the United States and Canada. A location factor of 1.00 means the local costs equal the national average. A factor of 1.20 means local costs are 20% above the national average; a factor of 0.85 means local costs are 15% below.

Location factors vary significantly by trade. Labor-intensive trades like electrical and plumbing tend to have higher location factors in high-wage markets; material-intensive trades like concrete and masonry are less affected by local labor rates.

Bare Costs vs. Total Including O&P

RSMeans provides two cost levels for each line item:

Bare costs — The direct cost of material, labor, and equipment, without overhead or profit. Bare costs are used when the contractor is adding their own overhead and profit markup.

Total including O&P — The bare cost plus standard overhead and profit markups. RSMeans uses standard markups of approximately 10% for overhead and 10% for profit, though actual markups vary by contractor and market.

For most estimating applications, bare costs are the more useful figure — they allow you to apply your own overhead and profit based on your actual cost structure and the competitive environment.

RSMeans for Government Projects

Government agencies — particularly federal agencies — often require that cost estimates be based on RSMeans data. This requirement serves several purposes:

• Consistency — RSMeans provides a consistent, auditable basis for cost estimates
• Independence — RSMeans costs are independent of any particular contractor's pricing
• Defensibility — RSMeans-based estimates are easier to defend in audits and disputes

For independent government cost estimates (IGCEs), the estimator applies RSMeans unit costs to the quantities from the project drawings, adjusts for the project location using location factors, and applies appropriate overhead and profit markups.

Union Estimating prepares RSMeans-based cost estimates for government agencies and contractors working on federal, state, and municipal projects. Our estimates are fully documented, location-adjusted, and ready for submission with 48–72 hour turnaround on most projects.

The Bottom Line

RSMeans is a powerful tool when used correctly — for budget estimates, government work, and benchmarking. But it is not a substitute for a detailed estimate based on actual project conditions and current market pricing. Understanding what RSMeans is and how to use it effectively is an essential skill for any construction estimator.