BUSINESS FORMATION AND GROWTH

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The hardest part about starting a business is knowing where to start. In addition to the many decisions that will have to be made regarding the product or service, location, and marketing of the business, many new business owners may feel overwhelmed by the numerous financial, contractual, and other legal issues involved in starting a business. Some of the most pressing and important issues facing an entrepreneur contemplating the start of a business are what type of business entity to form, how to finance the new business, and construction of the business.

 

This annotated bibliography focuses on these three areas of business formation and growth – business formation, mortgaging and finance, and construction law as related to facility planning - and is designed to provide the business owner and her attorney with several resources to assist them in making these particular decisions.

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I. Business Formation

 

The following annotated bibliography is designed to help an attorney or entrepreneur find the information necessary for business formation and choosing an entity. Several of the articles explain in detail the various forms of entities available for businesses to use. Most of the bibliography also will help an entrepreneur understand how to judge their priorities when planning and filing for their business.

 

 

Leslie H. Loffman & Sanford C. Presant, Choice of Entity, Business and Tax Considerations, 743 Practising L. Inst. Tax 575 (2007).

 

This is one of the best, most comprehensive articles available on choice of entity and business formation. The article begins by breaking down all the available entities available to those desiring to go into business. It takes into consideration how the choice of entity question is approached by an investor to balance their tax objectives, personal liability, and management. The article focuses on the most common methods of business investment: sole proprietorships; tenants in common; partnerships, general and limited; C and S corporations; limited liability companies and the business trust.

 

The Article reviews taxation under each form of entity discussed, including how income and losses are typically calculated for the IRS. The article discusses personal liability and ways to limit liability in a sole proprietorship or partnership. Also covers risk management from an investors’ perspective and how each entity effects risk in the investment.

 

One of the unique forms of business that has slowly become more popular over the last century is the business trust. This article examines the business trust and compares its operation to that of a corporation or partnership.

 

One of the most useful parts of this article is a spreadsheet list indicating statutes for each of the fifty states regarding choice of entity and formation issues.

 

 

Allan G. Donn, Is the Liability of Limited Liability Entities Really Limited?, 2002 A.B.A. Sec. Bus. L.

 

An excellent job of answering anyone’s questions to who, what, where, and how does it fail, of limited liability. The article’s caption is “Is The Liability of Limited Liability Companies Really Limited?” The article then proceeds to state yes, why, and how anticipated liability protection may not be available.

 

The article continues to discuss the general principles of limited liability, distinguishing the principal’s liability from that of the organization. This area explains how an owner is distinct and separate from the limited liability entity. The article then goes in depth of how to maintain, protect, and lose limited liability for each form of organization that is granted some status of limited liability. The article examines corporations, limited liability companies, Limited Partnerships, Limited Liability Partnerships, Limited Liability Limited Partnerships, Professional Corporations, Professional Limited Liability Companies, Professional Limited Liability Partnerships, and Business Trusts.

 

The most useful information conveyed in this article is likely how to pierce the limited liability shield. This information allows an investor to know when he may be able to sue a parent company, limited partner or the management’s personal assets, as well as informing the managers and directors how they can keep themselves protected by following certain steps.

 

 

 

Michael F. Schaff & Robert J. Chalfin, Basic Factors to Consider When Advising Clients in Choosing an LLC or a Corporation, New Jersey Lawyer Magazine, Apr., 2006, at 55.

 

This article covers all the basic information for choosing an entity in the business formation. This article reminds the reader to consider both tax and non-tax related issues as well as liability related issues when forming their business. It asks the investor to consider ownership control, transferability of ownership interest, and management structure. Although all these considerations are important, the article recognizes that tax and liability considerations are usually the biggest motivating factors for choosing a certain business form.

 

The article also seems to suggest that an LLC has the greatest flexibility in both tax consequences and liability, as well as the most freedom to determine its particular management structure, control and transferability. However, the downside of the LLC that the article acknowledges, is the fact that because so few statutes and court decisions have limited them in their discretion, they may be prone to be veil pierced rather easily.

 

 

63 Am. Jur. 2d Products Liability § 117 (2006).

 

This American Jurisprudence section describes the liability of a successor organization regarding its business form. It goes into depth on product liability and which organization, predecessor, successor, or partner to either, is liable for a defective product. Typically, successor liability is held by the successor and not the originating business form, if following a business form that resembles a corporate structure. However, there is a rule of nonliability of a successor business when: (1) a successor limited partnership acquired the assets of a predecessor corporation in a forced bulk sale transfer, although the limited partnership was comprised of the former stockholders of the corporation; (2) the predecessor manufacturer was a sole proprietorship the assets of which had been purchased by a corporation; (3) the predecessor was a partnership and the successor corporation was formed by a surviving partner; and (4) the successor was a proprietorship employing only one person and the predecessor was a corporation. This section is useful for understanding limited liability, especially if your creating a business with a successor, predecessor, or partnering organization.

 

 

 

Richard D. Harroch, Corp. Sec. Series, Start Up Companies, Planning, Financing and Operating the Successful Business, (Law Journal Press 2002) (1985).

 

The book begins with the typical initial choice of entity concerns previously discussed. Chapters two through five focus on corporations, limited liability companies, general partnerships, and limited partnerships and the methods of raising capital. These ways also include common stock and preferred stock sales as well as debentures and other interest or security sales from non-corporation businesses. These chapters discuss the federal and state securities law affecting these capital raising activities, which should definitely be taken into consideration during the formation process prior to financing the business.

The next several chapters are dedicated to financing and the legal risks related to that. Chapter 12 discusses the tax treatment of several of the various entities. The book goes into some depth on the tax consequences to each organization and for the owners of the company.

 

Chapter 15 discusses how to protect a company’s intellectual property. The discussion goes into the various forms of protections (patent, trademark, copyright) and when they should be used. The following chapter discusses licensing for many companies and includes useful forms of licensing agreements.

This two volume book has a lot of everything you could ever want to know about starting your own corporation, but seems to fall flat when it comes to consideration of LLCs. This book seems to be designed to the already business or legally savvy mind. If you have clients considering starting up a company with an initial public offering, this is definitely the book for you.

 

 

Peri H. Pakroo, The Small Business Start-Up Kit (Nolo 2003) (2000).

 

This book is filled with examples, state contacts, and legal forms. The first part of the book covers the legal formations available to choose from, but also includes remarks about when you should not choose certain forms. Every business form listed also comes with examples of that type of business with tax and liability issues that might arise. The next part of the book explains the forms (operating, tax and some state regulatory) and procedures a business should follow to keep itself protected from liability. The book provides contact information for every state regarding business formation within that state. There are also plenty of examples of legal forms, such as articles of incorporation, bylaws, operating agreements, stockholder agreements and tax forms.

 

This book is a great source for samples and examples of forms, procedures, and tax consequences. It seems like it would be an invaluable source of information when forming a business.

 

 

Steps to Success, A Resource Guide to Starting a Business in Kansas, Kan. Dep’t of Commerce, http://kdoch.state.ks.us/KDOCHdocs/BD/Steps_To_Success.pdf (last visited Mar. 1, 2007).

 

This is the best website to go to if forming a business in the state of Kansas. This online guide lists all the resources available to in state entrepreneurs, from where they can get financing to where they can get free legal advice.

The Steps to Success begin as the rest of the information by briefly explaining the structure of the different types of entities. It next begins to explain the importance of creating a business plan, which is not just to keep an entrepreneurs eye on the prize, but also to show lenders and interested investors. The Steps to Success also explain the necessity for keeping records, choosing an appropriate location to start your business and selecting a Certified Public Accountant. The Steps to Success then explain how to register your business in the state, register as an employer, apply for a patent, trademark or copyright.

 

The next section of the Steps to Success then explains specifically what licensing procedures may apply to your specific business. Whether its retail or trucking, you will probably have to get some sort of operational approval. This guide leads you to the source of those licenses. The guide also provides plenty of information on State and Federal taxes, including credits and deductions that may be available as well as how and where to file.

 

The Steps to Success guide is one of the best tools provided to local entrepreneurs through the state.

 

 

Kansas Secretary of State, http://www.kssos.org/main.html (last visited Mar. 1, 2007).

 

Some of the best information available out there for the entrepreneur is to look at their Secretary of State’s website for information. This website has links that will lead you to forms, that will answer your questions, and that will give you the Kansas Statutes regarding the various legal entities that are available to you in Kansas. You can also email the Secretary of State to find out whatever other information may be needed. This website will also help direct you to find out what kind of license you might need with the state, but recommends you check with whatever county or city you are in for additional information.

 

 

Internal Revenue Code Business, http://www.irs.gov/businesses/index.html (last visited Mar. 1, 2007).

 

Uncle Sam has a lot of great resources located on the IRS website. You can find all the initial tax forms you will need, including the employer identification number which is basically a social security number for your business. The IRS provides lists of what can and cannot be deducted as business expenses. You can also quickly find links to forms or reference material for whatever type of entity you choose. The IRS also provides links to learning opportunities for small businesses.

 

 

The Wall Street Journal Center for Entrepreneurs, http://startup.wsj.com/ (last visited Mar. 1, 2007).

 

This site has several incoming articles by other entrepreneurs, business professionals and Wall Street Journal reporters. The site contains columns, how-to information, ideas, franchising, financing, and e-commerce information. Some of the current business suggestions floating out there are Online Communities and web video at the local level. Inspiration and ideas are abundant on this site.

 

 

Entrepreneur.com, http://www.entrepreneur.com/ (last visited Mar. 1, 2007).

 

Entrepreneur.com is very similar to the Wall Street Journal Center for Entrepreneurs. However, this site also has answers to management, starting a business and franchise opportunities. This site has several articles to read about being an entrepreneur and starting your own business. Two useful articles to be considered after your business has been formed are "Developing a Marketing Calendar" and "Getting Out of a Commercial Lease." This site is worth a look if you are an independent entrepreneur looking for ideas in running a business.

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II. Mortagage and Financing

 

The following resources provide information for both new and well established companies regarding ways to find financing for differing business endeavors, from starting a business or buying real estate. In addition, the resources provide information on how corporate securities, one of the major sources of financing for business, are regulated. A fair amount of the materials relate to the financing of corporations and, as a result, may not be as helpful to other forms of businesses.

 

 

 

Wikipedia: definition of Corporate Finance,

http://en.wikipedia.org/wiki/Corporate_finance (last visited Feb. 25, 2007).

 

This website provides a general definition of corporate finance and also links to related topics and subject of corporate finance. Not only is a definition of corporate finance given but scrolling down on the page provides detailed explanations of the individual topics. This webpage (as most encyclopedias) caters to those with little knowledge on the particular subjects, however the cursory topics discussed may help someone who is just learning about the area of law relating to corporate finance. At the very bottom of the web page are links to various articles, college websites, and other web pages on the specific individual topics. At the top of the wikipedia webpage is a tab titled Discussion which allows viewers of the webpage to read discussions that have previously taken place regarding the content of the wikipedia page.

 

 

SEC Law.com,

http://www.seclaw.com/centers/corpfin.shtml (last visited Feb.28, 2007).

 

This is a very helpful website that provides a very thorough discussion on the laws that affect corporate financing. This webpage provides links to web pages which provide in-depth information on the following topics: Federal Securities Laws, Securities Arbitration, Private Placements, Blue Sky Laws, the Process of Initial Public Offerings, and an Introduction to Insider Trading. The website provides a helpful start for those looking to find what law governs the specific areas of business, specifically corporations.

 

 

Find Law,

http://library.findlaw.com/2002/May/27/132496.html (last visited Feb. 16, 2007).

 

This web-page provides a link to an article titled Real Estate Financing Options Include Interest Rate Derivatives, written by Walter S. Pollard. The article provides a fairly in-depth scholarly discussion on one of the more recent methods used for financing real estate endeavors. The author of the article does a wonderful job of defining and explaining the terms and concepts of interest rate derivative and how they can be used as opposed to the current methods used to finance real estate. The fairly short article provides a vast amount of information.

 

 

The Laws that Govern the Securities Industry,

http://sec.gov/about/laws.shtml (last visited Mar. 1, 2007).

 

This website provides a brief synopsis of each separate act of legislation which has been passed governing the area of securities law, from the Securities Act of 1933 to the Sarbanes Oxley Act of 2002. In addition to the synopsis, the website also points out the nuisances of every act by giving a brief summary of those as well. The web site is a wonderful way to begin researching securities laws, and also provides links to the full text of each of the act and for the Sarbanes Oxley Act provides a link to the commission rule making and reports issued. On the left side of the page are several links to other useful pages and websites, including links to specific forms and pdf files that could prove very useful.

 

 

Entrepreneur.Com,

http://www.entrepreneur.com/howto/raisemoney/index.html (last visited Mar. 1, 2007).

 

This initial web page provides a list of 18 sources for companies, from new businesses to established corporations to find financing. Each of the 18 items listed was a link to a separate web page which provided a lengthy discussion on that particular form of lending. At the end of each page on the specific topic there are an array of links to articles which provide more information on each topic. Each page dedicated to a specific topic starts with a brief summary giving a definition of the financing, what type of business the financing is best suited for, the supply, best use, cost and ease of acquisition for each financing option. Not only are the links related to the financing options helpful the other pages which can be linked to are also useful in the practice of business, especially the portion of the web site that is dedicated specifically to the area of finance.

 

 

 

Steve Bergman, Maverick Real Estate Financing: The Art of Raising Capital and Owning Properties Like Ross, Sanders and Carey, (Wiley 2006).

 

This book is written in more of a narrative journalistic style and yet still provides valuable information regarding the various ways to finance both residential and commercial real estate. This book details with all the major areas of real estate from financing, the different types of loans, the various forms of mortgages, and negotiations regarding real estate transactions. This book does not focus on how law relates to the industry; however it provides a good discussion of the elements of financing real estate that an attorney would need to know to meet their clients needs. The book is organized neatly around the specific topics making the information easy to find.

 

 

Jack Guttentag, Mortgage Encyclopedia: An Authoritative Guide to Mortgage Programs, Practices, Prices and Pitfalls(McGraw-Hill 2004).

 

This book tells you everything you or your potential client could ever want to know about mortgages, or at least points you in the right direction. This book was published recently (2004) and has a leg up on older sources which may not have some of the more current options available. This book provides a good explanation of the different types of mortgages and to whom each is best suited for. This book does a very good job of defining all the mortgage related terms. Aside from the invaluable content the book is organized in such a way that finding the right information quickly is very easy. Although targeted at buyers of real estate, this book would be helpful to attorney’s who are trying to help their clients find the best type of mortgage, and could be helpful in negotiating the terms of that mortgage.

 

 

Business Council Update (West Publications) December 2005.

 

This is a newsletter published by West Publications and is available on West-Law in the publications database. The news letter is written by Allen S. Gutterman. The December 2005 newsletter provides an article titled “Refinancing Commercial Real Estate Mortgages To Lock In Long-Term Savings.” This article provides the step by step process of how to refinance a commercial real estate mortgage. When accessed from WestLaw, there are several links that take you to the specific forms that one would need to complete such an endeavor. This article and its contents would be particularly helpful to an attorney who is guiding their client through such a transaction. Not only does the article discuss how, but also provides an explanation of why the corporation would want to refinance the mortgage. Although the newsletter is from 2005, the interest rates have stayed fairly low and I feel that the article is still very relevant and could be immensely helpful.

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III. Construction and Facility Planning

 

One of the most important aspects of starting a business is deciding where to locate the business. Once the “where” question is decided, there are many other decisions regarding the physical facilities that must be made including whether to lease, buy, or build your office. Similarly, as the business expands, the functionality of the physical environment is an important consideration.

 

Regardless of whether the decision is to lease or buy, the office space rarely will meet the needs of the business without some modifications. A new or expanding business owner, therefore, will likely find themselves entering into contracts for remodeling or new construction.

 

The following resources were limited to those topics which may interest a new or expanding business owner – identifying the type of contracts available, identifying key provisions for forming the contract, estimating project costs, and avoiding pitfalls.

 

 

Standard Agreements

 

Each of the following organizations, AIA, AGC, DBIA, and EJCDC, has written standard agreements for use on a variety of construction projects. Even if customized agreements are being contemplated for use on a construction project, the standard agreements are good references and a “starting point” from which to develop a construction contract. There is no reason to reinvent the wheel, but when evaluating a standard agreement, one must keep in mind who is writing the contract.

 

 

AIA Documents, http://www.aia.org/SiteObjects/files/docs_paperpricelist.pdf (last visited Feb. 24, 2007).

 

The American Institute of Architects (AIA) is an architect advocate organization which publishes over 100 documents for managing transactions and relationships involved in construction projects including contracts for traditional design/bid/build projects and newer methods of project delivery such as design/build. Their “A” series documents are written for Owner/Contractor relationships.

 

The AIA documents are widely used and are considered “standard” in the industry. They are prepared with input from owners, contractors, attorneys, architects, engineers, and others. The AIA’s first contract document, Uniform Contract for use between Owner and Contractor was published 1888. In 1911, the AIA published its first standardized General Conditions for Construction. Copies of current AIA documents may be purchased in electronic or paper form from this website. Paper copies can also be purchased at any local AIA office.

For purposes of reference and information, sample copies of current AIA documents are contained in the Architect's Handbook of Professional Practice annotated below under Books.

 

 

AGC Contract Documents, http://www.agc.org/page.ww?section=Contract+Documents&name=About+Contract+Documents (last visited Feb. 24, 2007).

 

The Associated General Contractors of America (AGC) has over 100 contracts and forms related to the construction industry including contracts for design/bid/build and design/build methods of project delivery. Founded in 1918, the AGC is the oldest and largest construction trade organization and is considered “the voice of the construction industry.”

 

AGC standard agreements are jointly written with owners represented by the Private Industry Advisory Council (PIAC). The AGC agreements are available in paper form from AGC and may be ordered by phone or online.

 

 

DBIA Contract Documents, http://dbia.hbp.com/itemlist.cfm?catid=15&compid=1&pcatid=0 (last visited Feb. 24, 2007).

 

Like other organizations, the Design/Build Institute of America (DBIA) also publishes “standard agreements” for use in construction projects which can be purchased in electronic or paper form online. The DBIA publications only pertain to projects using the design/build method of project delivery where architecture/engineering and construction services are integrated under a single contract.

 

DBIA was founded in 1993 to “advocate and advance single source project delivery within the design and construction community.” Since DBIA is a relatively new organization, their documents have not been as widely used in the industry. With the increased interest in design/build, however, their contracts are gaining in popularity.

 

 

EJCDC Products, http://www.nspe.org/product_search.asp?cntProductSection=5 (last visited Feb. 24, 2007).

 

The Engineers Joint Contract Documents Committee (EJCDC) also publishes “standard agreements” for both design/bid/build and design/build methods of project delivery. EJCDC documents are prepared with the advice of legal counsel and reflect the experience of the practicing engineers who constitute the EJCDC.

The EJCDC construction documents are available for purchase in electronic or paper form online. These documents are widely used within the engineering community; however, they are considerably more expensive than the other available standard agreements.

 

The EJCDC is a committee within the National Society of Professional Engineers (NSPE). The NSPE, founded in 1934, is the recognized voice and advocate of licensed Professional Engineers.

 

 

Contract Provisions

 

George J. Arnold & Thomas J. Kucera, Construction Contract Administration & Claims Resolution, Int’l Mun. Lawyers Ass’n, 69th Annual Conference, October, 2004.

 

This article addresses key contract provisions, project administration, and claim resolution. Although the authors speak to these three areas in the context of municipal projects, the same considerations are important in any construction contract. The article outlines the importance of key contract provisions including bid schedules, daily reports, notice and notification of claims, dispute resolution clauses, and provisions to audit the contractor’s financial records. The article also stresses the importance of adequate contract administration, and provides guidelines for claim resolution consistent with the contract provisions.

 

 

Terry R. Tennant, Advanced Project Delivery Systems: Design-Build and Design Delegation Insurance Issues, ABA Forum on the Constr. Indus. & Section of Pub. Contract Law, October, 1998.

 

This article compares and contrasts design/bid/build and design/build project delivery methods with respect to insurance issues. Although primarily directed to contractors, the author explains the types and extent of coverage required in construction projects. This article provides valuable information and insight to the owner who wants to ensure that the contractors working on their project have adequate coverage and that the construction contract contains provisions for these types of insurance.

 

 

Justin Sweet, Standard Construction Contracts: Some Advice to Construction Lawyers, Constr. L.J. 7(1), 8-23 (1991).

 

This article discusses the advantages and disadvantages of standard contracts for private construction projects. The author points out several insufficiencies in standard contract provisions, while acknowledging that standard contracts serve as “invaluable connectors” between contract participants. The author also gives basic advice to attorneys in selecting and using standard contracts, and advice as to when a customized contract may be a better choice.

 

Project Delivery Method

2 Bruner & O’Connor on Constr. Law § 6:22, Factors relevant to selecting delivery method—Relative merits of design-bid-build, construction management, and design-build delivery methods, (Westlaw Bruner & O’Connor on Constr. Law Database, 2006).

 

In this short article, the authors compare design/bid/build, construction management, and design/build methods of project delivery with respect to several factors relevant to selecting delivery method including: unit cost, construction speed, delivery speed, cost growth, schedule growth, and construction quality. From this article, an owner can contemplate the effects of project delivery methods on cost and schedule.

 

 

Most books listed are available for purchase from the BNi Building News National Construction Book Catalog, vol.82, Late Winter 2007, http://www.bnibooks.com/, or other sources listed in the annotation. Some are also available in the reference section of local libraries or through interlibrary loan.

 

Standard Agreements

 

American Institute of Architects, Architect's Handbook of Professional Practice, Joseph A. Demkin, ed., John Wiley & Sons, Inc., 2001.

 

If an owner would like to review all the AIA documents before purchasing them individually, this book contains sample copies of all current AIA documents and is available in many university libraries. Sample copies of AIA standard agreements are included in print and on the CD-ROM that accompanies the Handbook. The Handbook also includes a section entitled "Documents Finder," which provides a brief synopsis of each document.

 

The book is also available for purchase online at http://www.wiley.com/WileyCDA/, http://www.amazon.com/, http://www.Barnes&Noble.com/, http://booksense.com/, http://froogle.google.com/, or through local components.

 

Construction Problems and the Law

Arthur F. O’Leary & James Acret, Construction Nightmares: Jobs from Hell and How to Avoid Them, William D. Mahoney, ed., BNi Publications, Inc., 2002.

Construction projects are complex; therefore, many things can go terribly wrong during the project. This 414-page paperback book presents real-life stories of construction projects gone “bad”. Author O’Leary, a 40-year construction project veteran, provides examples of problems that can arise in a construction project including errors in plans, extras, delays, interference, scheduling, change orders, defective construction, incompetent contractors, inadequate supervision, etc. After O’Leary sets the stage for the reader in providing what went wrong and how, Author Acret, a 40-year construction law veteran, legally analyzes each project and provides the probable outcome of any arbitration or litigation which may arise. His legal analyses address key contract provisions, breach and cancellation of contracts, termination, dispute resolution, liens, insurance, bonding, and the roles and duties of the owner, architect, and contractor in a construction project.

 

The authors address issues that are far too familiar in the construction industry including the dangers of contracting with a friend or trying to “help” a contractor relative; allowing contractor substitutions in lieu of specified materials; and unethical, sometimes illegal, actions in which owners and contractors engage to reduce project costs. This book provides practical information and insight on how to avoid and resolve construction problems and disputes before they become nightmares.

 

The Design/Build Deskbook, John R. Heisse, II and James S. Schenck, IV, eds., ABA, 2004.

 

The deskbook basically consists of two parts. The first part, the first five chapters, contain information basic to design/build contracts regardless of jurisdiction and the second part provides a review of the law, authored by hundreds of practicing construction lawyers, for each state or province.

 

Like most construction resources, this book is geared toward design or construction firms wishing to pursue design/build projects in each of the 50 states, the District of Columbia, and the provinces of Canada. However, Chapters 2 and 4 contain valuable information for the owner. Chapter 2 contains an extensive discussion of the pros and cons of design/build from the owner’s point of view, and provides a detailed comparison of the “standard” contracts between the Owner and Design/Builder, including those available from AIA, AGC, DBIA, and EJCDC. (See Website annotations above.) Chapter 4 examines the risks faced by owners and design/builders and suggests ways to address the risks through insurance and bonding.

 

This book is available through interlibrary loan or for purchase from the ABA Bookstore at http://www.abanet.org/abastore/index.cfm?section=main&fm=Product.Search&type=a&cid=73&p=2

 

Estimating

 

Most construction cost estimating guides are structured for the contractor based on manpower/equipment time and material quantities, which requires the user to decipher quantities from drawings and estimate the manpower required for the project. The following books provide costs based on square footages for specific types of building projects, which makes it easier for people outside the construction industry to understand. The costs are most useful to establish a budget for construction or to check a contractor’s bid

for reasonableness.

 

Square Foot Costs, 28th Annual Edition, Barbara Balboni, ed., R.S. Means Co., Inc., 2007.

R.S. Means Co. construction cost data books are perhaps the most widely used in the construction industry. Their Square Foot Costs book is organized into well-defined sections including a residential section; commercial, industrial, institutional section; and an assemblies section which can be helpful if remodeling. The costs given are the “national averages.” Since costs can vary with location and time, this guide provides information on location factors as well as historical cost indexes which may be used to adjust the “national average” for a given location.

 

This book may be purchased at http://www.constructionbook.com/xq/ASP/id.460/subID.521/qx/default2.htm?CMP=KNC-MSN.

 

The 2007 ENR Square Foot Costbook, Engineering News Record, 2007.

 

The costs presented in this guide were compiled by Engineering News Record, Design Cost Data, and BNi Building News from actual project cost data. This cost guide is more technical in that costs are provided by architectural division. This could be useful on larger projects where the contractor’s bid is tabulated by architectural specification sections.

 

The book is arranged in four sections:

 

(1) Current Square-Foot Costs. This section, by Design Cost Data, provides square foot and total costs by architectural division, i.e. sitework, concrete, wood, electrical, mechanical, etc.

 

(2) Construction Economics. This section, by Engineering News Record, provides cost information on the most commonly used construction materials and is graphically presented to show 1- to 5-year cost trends for key building materials, showing how and where material costs affect overall construction costs.

 

(3) Unit-in-Place Costs. This section, by BNi Building News compiles over 6,000 unit prices by architectural division for most aspects of construction.

 

(4) Cost Adjustment Factors. Since prices around the country can vary considerably, this section, by Design & Construction Resources, provides adjustment factors for regional variations in labor and material costs.