Regional Cost Differences

Construction prices do vary quite a bit in different parts of the country. Because our labor database is stored in person-hours, however, you'll find that most of the difference is accounted for when you type your own local wage rates into the Fixed Costs section of the MacNail or HyperEstimator construction estimating software.

NOTE-- We retired the MacNail and BidMagic estimating programs in 2000, and replaced them with Goldenseal construction estimating software. Goldenseal is an integrated program that also includes accounting, scheduling and contract writing. We keep these instructions online for our die-hard MacNail users! Goldenseal estimates also include a quick adjustment factor that you can use for regional differences in prices. You can also use the Replace All command to adjust some or all material costs by a fixed amount.

Nevertheless, there are a few regional price differences that we 've noticed, based on reports from our users:

  • Our labor database seems to be about 5% too high for most of the Midwest, and in many rural areas elsewhere in the country. Apparently the Puritan work ethic is especially strong in those parts!
  • Our labor database is anywhere from 5 to 30% too low for major metropolitan areas such as Boston, New York City and Los Angeles.
  • Our lumber material costs are too high for the Pacific Northwest and some other parts of the West. Our material costs are too low overall for islands (Hawaii, Nantucket, etc.), for Manhattan, and for certain very remote areas where delivery costs are high. If you live in any of these zones, you may want to use MacNail Customizing first thing to figure in your own local lumber prices. If excessive delivery costs are the main difference between your costs and our database, you may want to add delivery charges as a separate line item in Specifications, or in the soft costs section of the Summation.
  • Many of our prices are too low for "ritzy" areas-- for example, southern Connecticut, Westchester County NY, and many parts of California. This cost difference is more a matter of fancier specifications than an actual productivity factor.