This paper is a concept of how to determine the cost impact of using green building materials in the construction industry. Sustainable construction encourages use of material resources in an environmentally friendly and profitable way. The concept of “Sustainable Construction” has been developing rapidly and has been receiving a lot of attention around the globe. The main objective of sustainable construction is to use natural resources such as water and power to optimum levels which is achieved by proper design, construction, maintenance and operational practices. The cost factor is very important in selecting materials. Other considerations are location factor and recycled content. All these factors have high significance on the cost databases.

This paper focuses mainly on the need to consider recycled content and location factor of materials selected from different cost databases (RS Means, US Cost etc.,) to optimize the cost estimating systems for sustainable building practices. Most of the cost databases provide item code, description, quantity, unit of measure, quantity factor, contractor, resource, labor hour, resource output, direct cost, labor, equipment, material cost factors. There is a need to include other factors relative to environmental and financial analysis like recycled material content and location factor. These additional factors when integrated into the cost databases will benefit engineers, architects, contractors in a significant way, and in the end results will display an amazing product to customers.