BEYOND ESTIMATION MARKET OUTLOOK
What should owners budget for cost escalation in the current economy? What pricing structure should we use to accurately estimate costs for projects?
This presentation will explore trends in real exchange rates, construction volumes, and major global construction inputs such as oil, steel and copper. Conclusions from these trends will provide the attendees with the understanding of micro and macro economic drivers and their role in construction costs.
We will examine and evaluate macroeconomic leading indicators such as equities, GDP and job creation to establish which economic gear we are in now for this economic expansion. Using this information we will present a construction weather map for the country and forecast where construction costs will likely trend over the next 2 years.
Through the Reconciliation Tracker, we will provide data and metrics from hundreds of reconciled projects. We will examine how pricing levels have changed and advise what we expect for 2018 and 2019.
Lastly, we will analyze two case studies of construction procurement and provide guidance on effective ways to procure projects in an escalating market. How will your procurement schedule affect costs? How can you use procurement to strategically minimize your exposure to construction escalation?
- Metrics: Exchange rates, annual escalation tables, job creation (2000 to current).
- Innovative Ideas: Explore economic conditions and how they impact construction costs.
- Planning Tools: We will provide predictions for annual escalation along with direction on how to implement these predictions into project cost planning.
- Proofs: Historical data will provide the platform for discussion and conclusions.
- Attendee Benefits: Learn the impact of macroeconomics on construction costs and how to lock in costs, reduce risk, and set contingencies for design, escalation, bidding, and construction.
This course is AIA accredited:
Course Number: VCC002
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