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RSMeans line item questions

0 626 Market Intelligence

The costs that are found in RSMeans data under the heading “Total Incl. O & P” include mark-ups for the installing contractor’s overhead and profit. If a general contractor is involved, the general contractor should add additional mark-ups for his or her own overhead and profit. How much is added, or what categories are added is governed by the competitive bidding process or contractual arrangements with the owner. That being said, there are contracts used by government agencies that require the use of RSMeans costs found under the “Total” heading in the bare costs. The contracting companies are allowed or instructed to use a “coefficient” (or more simply, a multiplier) that must cover all other costs above and beyond bare material, bare labor and bare equipment. Check your contract. If you see DOC, JOC, SABER, IDIQ, Delivery Order, Job Order or some other acronym, then question your contracting officer or government representative before adding mark-ups for the general contractor.

1) Do the line items include mark-ups for the general contractor when the work is performed by another subcontractor? 2) If a subcontractor is performing the work on a RSMeans line item, can the general contractor add line items for general liability insurance, office expenses, overhead and profit (which one) and a Field Superintendent? We are a general contractor that performs government projects.

by Reed Experts last update:Sep 8, 2010

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