Adjusting Budget to Year 2008: Need PEER REVIEW 1

[Hoagie]

Hi all,

I need for the group to check my premise for this calcuation.

The problem: I need to adjust a DPW budget to Year 2005 dollars in No.CAL.

My approach: Study/extrapolate available historical cost data for my vicinity/locality in order to determine the differential changes in cost--I have found a private group (RS Means) that can furnish that for a small fee;
thence, knowing the difference,a reasonable interest rate may be calcualated; thence, apply a PW-to-FW formula taken from an interest table (i,n,PW/FW)

NOTE: due to the 'gas' shortage/911/materials cost increases, etc., I've noticed a spike in availabe cost data curve for the last 4 yrs, say. Any recommendations on making adjustments to the data/curve, intergrating that data as-is, or ignoring that, or parts, of that data?

Thanks in advance for helping to all.

M.

 

[bltseattle]

Engineering News Record publishes Construction Cost Indices regularly (monthly or quarterly). They also have a really good quarterly report on Construction Costs and the economic/industry environment as it affects project bids. This would be a good check because it is within several months of being "current", and it breaks out different types of work so you can discern if concrete or steel work is going up in price more quickly than the general construction industry, which would affect public works type projects substantially.

 

[Hoagie]

Hey BltSeattle,

Thanks for responding. Good advice. I've acquired the data you've described, and also data published by USACE. Now it just a matter of using it! Thanks again. Mike