Escalation (plus Normalization and Exchange Rates)

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 a suite of tools that you need for future escalation estimating, incurred escalation, cost normalization, and exchange rate impact analysis. The tools use a database of historical and forecast price indices obtained from leading economists that the Center will help you choose (such as IHS Global Insight). The tool applies unique capital market demand adjustments to the base indices and has the ability to estimate cash flow by account. Finally, it uses Monte-Carlo simulation to generate a probabilistic output, including links to the contingency toolset (i.e., produces the industry's first "universal" capital cost risk output). The Center customizes the tools and indices to align with your company's project types, locations, and cost coding (i.e., there are no license fees!)

The following files contain further information on these products:

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