Use the Local Multiplier Adjustment to increase or decrease the costs for unusual situations, such as remote locations, resort locations, shortages, surpluses, etc. Enter a positive percentage to increase the local multiplier, or a negative percentage to decrease the local multiplier.
Example: To increase all costs by 7.5%, enter 7.5 in this field. If the local multiplier is 1.10, the adjusted local multiplier used in the cost calculations is 1.1825, which is 1.10 increased by 7.5% (1.10 times 1.075)
Example: To decrease all costs by 7.5%, enter –7.5 in this field. If the local multiplier is 1.10, the adjusted local multiplier used in the cost calculations is 1.0175, which is 1.10 decreased by 7.5% (1.10 times 0.925).
The following are rough percentage ranges to apply for certain unusual conditions:
Add for the Following:
Abnormal material shortage: 2% to 10%
Hillside buildings: 5% to 20%
Remote areas: 5% to 15%
Resort locations: 15% to 30%
Subtract for the Following:
Quantity or development construction: 1% to 3%
Abnormal labor surplus: 1% to 5%
Amateur workmanship: 15% to 30%
Special Local Conditions: Smaller cities and suburbs near larger cities generally fall under the same cost influences as the larger cities; however, local inspection practices, licenses, codes and fees may vary, you should consider these possible deviations. Within a large city, costs will often vary by distance from sources of materials, such as ready–mix plants, and the Local Multipliers apply only to typical conditions prevailing.
Natural Disasters: Major natural disasters can create isolated material and/or labor shortages requiring some upward adjustment to the multipliers. Some specific materials, such as roofing, can increase 30% to 50% or more above normal repair estimates.
Abnormal Material Shortages: Abnormal material shortages can occur because of temporary supply/demand imbalances caused by major natural disasters, factory closures, strikes, environmental legislation, trade embargoes, commodities speculation, etc. Some upward adjustment to the multipliers may be required. Note: Even though a particular material may increase 30% to 50% in a short span of time, you should use caution since it may only be a small part of an entire structure.
Remote/Resort Locations: If a building or other structure is far removed from supplies of labor and materials or if its location is accessible with difficulty, requiring higher freight charges on materials, noncompetitive conditions for labor or materials, labor per diem charges or unusual climatic conditions, some upward modification of the multipliers is appropriate. Examples are mountain, desert, island or resort locations and others not enjoying reasonable and adequate transportation facilities.
Quantity or Development Construction: There are usually cost savings in quantity construction, which may or may not be passed on to the prospective owner. Usually, only part of the saving is passed on, and since costs in Residential Estimator are for the types of buildings typically built in this manner will be based to some extent on such construction, the costs may require only small percentage reductions or none to reflect actual sales conditions in the area. This is particularly true in tract development, where a large number of identical or similar dwellings are built at one time, which may effect savings in construction costs. However, in evaluating a single residence in a tract, you must use your own judgment as to whether there was a saving that is pertinent to a specific estimate.
Amateur Workmanship: All costs in Residential Estimator are based on professional labor supervised by a contractor or his job foreman. For amateur workmanship, costs should be decreased to reflect the proper wage rate and lack of supervision relative to the quality of the work.
Repair and Remodel: All costs in Residential Estimator are based on new construction. Typical repair work will run 10% to 20% higher because of restricted area, movement of materials, temporary supports, shoring, etc., and other contingencies not encountered in new construction, not including demolition and removal. For detailed costs we would recommend using our repair and claims products.