BUILDING COST INDEX

BUILDING COST INDEX

A building cost index can be defined as a percentage measure of the changes in price or cost of an item, component or group of items over time and in relation to a certain data usually termed the base data.

Historical and current cost information and data to serves important uses for the ascertainment of trends or percentage change in building prices using the index number over a period of time.

It is a way of comparing the effect of resources, price movement on the cost of project over time.

It is one of the most important items of cost information in terms of forecasting techniques depend on historic (i.e. past information), which is known as building cost index.

The aim of building cost index is to measures changes in the cost of an item or group of items from one point in time to another.

A base data is chosen and is usually given the value of 100.