Appendix L › Steps 3–4 Cost Sources; Unit Cost Components

Which cost data sources does FEMA accept, and what must each unit cost include?

FEMA term

Approved cost data sources; components of unit costs

Short answer

Current editions of industry-standard cost data (RSMeans, Xactimate, BNi, Marshall & Swift, Sweet’s and similar), local cost data, or unit costs from recently completed contracts. Each unit cost must be a complete in-place cost covering labor, equipment, materials, small tools, incidentals and hauling, and overhead, profit, surveying, inspection and permit fees must not be counted twice.

What FEMA requires

Step 3: FEMA determines whether unit costs come from an approved industry-standard source and whether current publications were used. If not, the estimate is returned for revision.
Step 4: FEMA checks the components of the unit costs. Each unit cost should be a complete, in-place cost including all labor, equipment, materials, small tools, incidentals and hauling for that element of work.
FEMA checks whether general contractor and subcontractor overhead and profit are included in the unit costs and not duplicated elsewhere in the estimate or in the Cost Estimating Format, or whether they are duplicated.
Surveying, construction inspection and permit compliance fees must not appear both within a unit cost and separately.
If there isn’t enough information on unit cost components, FEMA requests more from you.

<table class="pt-table"><thead><tr><th>Acceptable sources</th></tr></thead><tbody><tr><td>RSMeans</td></tr><tr><td>Xactimate</td></tr><tr><td>BNi Costbooks</td></tr><tr><td>Marshall & Swift</td></tr><tr><td>Sweet’s Unit Cost Guide</td></tr><tr><td>Other industry standard construction cost resources</td></tr><tr><td>Local cost data</td></tr><tr><td>Contract unit costs from recently completed projects</td></tr></tbody></table>

Documentation

The name and edition of the cost data source used, local cost data or recent contract unit prices if used, and a breakdown showing what each unit cost includes and where overhead, profit, surveying, inspection and permit fees appear.

Watch out · Govstar practitioner advice

Double-counted overhead and profit is a classic reason estimates come back. If O&P is already in the unit prices, say so clearly and don’t add it again as a line item or in the CEF.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.