The costs shown on each line item in the optimization page are unit total cost. Total cost is the summation of material cost and install cost. Install cost is the summation of labor cost, and when applicable, equipment cost per the unit of measure of the product/assembly. In the optimization page, the total unit cost also includes the applicable location factor determined by the project's address.
Material Cost
cove.tool's material costs are based on three sources: a national database for costs, direct pricing from manufacturers and industry survey, as described in our market study. The steps for deriving these costs are as outlined below:
National cost databases are reviewed first for a general understanding of cost for materials, overhead and profit
Those costs then are cross-checked with direct manufacturer pricing from cove.tool's product partners, when applicable
All costs are cross-checked again with industry reports and publication. When applicable, material costs are escalated using a factor determined by cove.tool's market study.
Labor and Equipment Costs, or Install Cost
cove.tool's labor costs are based on a national database for labor costs and statistics from the industry survey, as described in our market study. The steps for deriving these costs are as outlined below:
National cost databases are reviewed first for a general understanding of the national labor rate and equipment cost
Those rates are then cross-checked with industry input and statistics from applicable publications to reflect today's labor cost
Escalation Rate
cove.tool's market study recommends an escalation rate that users can apply to their cost. Escalation rates are typically applied to projects on an annual basis from the day of the cost estimate to the midpoint of construction. It is also encouraged that users invite their cost estimating professional to their cove.tool project for further input and discussion.