Escalation

Recent commodity and EPC price volatility has raised the stakes for escalation estimates. Rules-of-thumb aren't good enough anymore. This unique product provides two tools that you need for escalation estimating and cost normalization. The tools use a database of historical and forecast price indices obtained from leading economists (that the Center will help you choose). The tool also applies special capital market demand adjustments and has the ability to estimate cash flow by account. Finally, it uses Monte-Carlo simulation to generate a probabilistic output. The Center customizes the tools and indices to align with your company's project types, locations, and cost coding.

The following files contain further information on these products:

• Presentation
• Technical Paper (2007 AACE)
• Technical Paper (2008 AACE)