Gordian’s 2024 RSMeans Data: 56% of construction materials costs rose by 8.7%, and 93% of labor wages grew by 4.6%

Gordian’s 2024 RSMeans Data affirms that 63% of material, labor and equipment costs experienced a change of +/-5% over the last 12 months.

December 8, 2023 — Gordian, a provider of in-depth insights, robust technology and comprehensive expertise for all phases of the building lifecycle, has announced the immediate availability of 2024 RSMeans Data.

Gordian researchers found that 63% of material, labor and equipment costs experienced a change of +/-5% in the past year. 56% of materials costs changed more than 5%, with an average increase that was 8.7% higher than 2023 annual costs.

The MasterFormat Divisions with the highest rates of change include a 19% increase in Finishes (Div 09), a 7.3% decrease in Fire Suppression (Div 21) and a 6.6% decrease in Wood, Plastics and Composites (Div 06). Significant changes more than 5% have also occurred in 39% of equipment costs, with an average increase of 7%, and perhaps most notably for construction project managers, 93% of labor wages increased by an average of 4.6% year over year.

Each year, Gordian’s RSMeans Data is developed, validated and market tested by an elite team of cost researchers and industry engineers. Backed by advanced research methods and deep industry knowledge, Gordian’s data team has produced a robust cost data product, helping our customers during a time of high-cost volatility. By actively seeking customer interactions and feedback, our team prioritizes both product and data enhancements that will have the greatest impact for our customers and their businesses. We aim to continuously produce a more comprehensive and integrated data and software solution for our customers.

Chris Gaudreau, chief technology officer and chief product officer at Gordian

According to Gaudreau, Gordian invested heavily in the following feature improvements to enhance data quality, accuracy and usage:

• A 36% increase in labor rates collected and an 8% increase in materials researched to reflect labor and materials pricing more accurately in 970+ geographic locations
• Significant expansion of equipment rental research to support comprehensive costing
• Additional items based on customer feedback in sections including engineered wood siding, wireless pneumatic controls, overhead medium-voltage transmission wiring and medium-voltage utility reclosers
• Expanded cost data in sections including control components/DDC Systems, conductor installed on poles, oil filled transformers and wood electric utility poles

During its 82-year history, RSMeans Data from Gordian has established a reputation as the construction industry’s standard for material, equipment and labor costs. The comprehensive database is comprised of 92,000 square foot models, backed by a cloud-based data infrastructure and a team of dedicated cost engineers. This team invests more than 30,000 hours each year developing supply chain relationships and researching local market conditions to provide reliable, up-to-date costs in the annual data and quarterly City Cost Index (CCI) updates. A wide range of engineers, architects, estimators, contractors and facility owners depend on the data to estimate the cost of both new building construction and renovation projects.

The 2024 cost information is available in multiple formats, the most comprehensive being RSMeans Data Online, Gordian’s cloud-based estimating software. RSMeans Data Online is built with robust tools and specialized features, like lifecycle costing, square foot estimating, predictive data and team productivity capabilities. RSMeans Data Online is available in three tiers designed to meet individual needs and provide automatic quarterly updates to key materials and location factors. Visit RSMeans for more information or to purchase 2024 RSMeans Data.