Cost estimating and escalation

[Northof60]

I have an estimate for renovations to a warehouse building. The original estimate is from 2004. What is the best method to escalate and prepare prices for 2007?

 

[JAE]

I would think 3 to 4 percent per year. Just a rough guess.

 

[dik]

It largely depends on the area of construction... prices in some locals increase much more. Also depends on the materials of construction...

Dik

 

[SlideRuleEra]

US Department of Labor, Bureau of Labor Statistics has escalation factors on a great many construction activities. Warehouses happen to be one of them

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?series_id=PCU236221236221

Long-term industrial construction contacts are frequently written with payment terms tied to this type data.

http://www.SlideRuleEra.net

 

[Northof60]

many thanks for your help