Materials

Material Costs

Material costs within the Cotality Claims Construction Cost Database are compiled from surveys of suppliers throughout the US and Canada. Prices for some materials – such as clay tile, building stone and hardwood stock – vary significantly from region to region and these cost differentials are represented within the Cotality Material Pricing Methodology.

For example, clay tile production plants are located near naturally occurring clay sources. Because clay tiles are heavy, the further the tiles are shipped, the more expensive the tiles will be to customers. Commonly sourced materials are priced based on standard rates for local delivery, which is normally defined as less than 20 miles away from the source.

The cost of materials not commonly available in a local market – such as hand-carved moldings or historical wallpaper – may incur additional shipping costs.

It is important to note that estimators in Hawaii, Alaska and remote areas of Canada should consider adding additional shipping costs when purchasing items originating in the continental US.

Material waste is often included with items in the Cotality Claims Construction Cost Database, but estimators should confirm inclusion for specific items within the item details, and adjust as needed. Waste is defined as material that is discarded during a typical installation. Waste does not include that which is produced as a result of installer error, such as missed cuts or excessive jobsite spillage.

Common occurrences where estimators may consider additional waste include scenarios in which minimum quantities must be purchased.

Material Markup

Where applicable, material prices in the Cotality Claims Construction Cost Database include appropriate markup amounts based on job type. Markups consider labor and equipment costs for jobsite delivery, material placement, and movement of material using the relevant labor rate. Markup costs of material also include the carrying cost of inventory, accounting float, and associated financial administrative cost as a relative percentage of the overall material cost.

Finally, markup costs include a reasonable amount of sourcing and matching/material selection. Material markup for third-party material supplier line items is accounted for as a separate component within the respective "Install" Actions. The material markup for third-party material supplier line items solely represents carrying costs of inventory, accounting float, and associated financial administrative cost.

Claims Construction Pricing Database Methodology

Overhead & Profits

Other Considerations