SME
Construction Engineering · Problem type
Cost by a cost index and a city index
Use this for “A building cost $2,400,000 when the cost index stood at 11,200. The index is 13,350 now, and the city index is 92.5. What would it cost to build there today?”
Chart
This is an example. Type your own values to start a new problem.
$
C₂
=
$
C₁
×
I₂
I₁
×
CCI
100
I₁ is the cost index when C₁ was paid and I₂ the index today.
Formulas
C₂
=
C₁
×
(
I₂
I₁
)
×
(
CCI
100
)
2,646,161
=
2,400,000
×
(
13,350
11,200
)
×
(
92.5
100
)
Assumptions
•
The same kind of building or work, so one index tracks its cost.
•
Both index values come from one published series (ENR or RSMeans).
•
CCI scales a national cost to the city; 100 is the national average.
Step-by-step
WE KNOW
C₁ = $2,400,000, I₁ = 11,200, I₂ = 13,350, CCI = 92.5
FIND
estimated cost (C₂)
Step 1 · Find estimated cost (C₂)
Use C₂ = C₁ × (I₂ ÷ I₁) × (CCI ÷ 100)
Bring the cost to today by the ratio of the indexes, then to the city by its index over 100.
C₂
=
2,400,000
×
(
13,350
11,200
)
×
(
92.5
100
)
2,400,000
×
(
13,350
11,200
)
×
(
92.5
100
)
=
2,646,160.7143
C₂
=
about
$2,646,161
Check
Put the numbers back in. Both sides should match.
2,646,161
=
2,400,000
×
(
13,350
11,200
)
×
(
92.5
100
)
✓
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