Cost Index

A Cost Index is a statistical measure that tracks changes in the cost of construction over time. It reflects the price movements of materials, labour, and equipment, offering insights into trends and inflation within the construction sector. By comparing cost indexes at different points in time, industry professionals can adjust project budgets, estimates, and bids to account for inflation or deflation. This index is crucial for long-term financial planning, enabling more accurate forecasting and budgeting for future projects. It helps stakeholders maintain economic viability and competitiveness by aligning project costs with current market conditions.