Installed Product Escalation - Headline Inputs

Muir Construction Cost Index

FINAL COSTS – CONVERTING THE MATERIAL INTO FINAL PRODUCT

 

The 'Muir Construction Cost Index' uses a Patent protected process and methodology to calculate and convert the cost escalation in construction materials (products, materials & equipment) into the cost escalation of the installed product.

 

The system matches the PPI Sub-Indices with the corresponding construction products, breaks the cost structure down and at regular intervals, completes detailed analysis to update the material, labor, and equipment costs, as necessary, before putting the costs back together to arrive the current cost for the installed construction material or product.

 

The final installed cost of the construction material or product at each recorded interval (date) is compared against previous installed costs to calculate the real cost escalation for each construction material or product in the 'Muir Construction Cost Index'. 

 

The 'Muir Construction Cost Index' tracks over 40 construction products covering a good cross reference of the industry. The final Cost Index to the front establishes its numbers by taking an average of the large cross section of construction products in the index to arrive at what we believe is the most comprehensive cost index in the industry to date.

 

The graphs below illustrate how the change in material prices (products, materials & equipment) converts into the installed construction costs for products in the 'Muir Construction Cost Index' to March 2023. The Costs show the total cumulative cost escalation from May 2020, since the pandemic. The yearly or annual cost escalation rate can be established by dividing all percentages by the number of years since May 2020. We would recommend a factor 2.83 be utilized through to March 2023.