CONSTRUCTION PRICE LEVEL
The construction economy is exceptionally dynamic. Prices of raw materials, labour, regulatory costs, energy fluctuate quarterly – sometimes barely, sometimes strongly, seldom down! This economic uncertainty can have a major impact in the construction industry and the continuous changes in the price level making it more difficult to control costs especially in large scale and long term and complex projects
To limit potential financial risks a clear degree of foresight is required. This means accessing construction cost indices but are they up to date, realistic, have they been interpreted correctly? Can you have confidence in them and can a workable prognosis be made to prepare for the future? But how does this work? What types of indices are used in construction and what do they do?