InflationEstimationModelsSynthesis.pdfVIP

Inflation Estimation Models: Synthesis Prepared for Aaron Butters, Systems Analysis Program Development Manager Prepared by Kathy Lindquist, WSDOT Research Office With assistance from Michel Wendt, WSDOT Library Updated February 27, 2007 Transportation Synthesis Reports (TSR’s) are brief summaries of currently available information on topics of interest to WSDOT staff. Online and print sources may include newspaper and periodical articles, NCHRP and other TRB programs, AASHTO, the research and practices of other state DOT’s and related academic and industry research. Internet hyperlinks in the TSR’s are active at the time of publication, but host server changes can make them obsolete. Request for Report Summary of the Issue: Aaron Butters, Systems Analysis and Program Development Manager, requested information on inflation estimation. A synthesis of practices used to estimate inflation rates within cost estimating for capital projects is needed. WSDOT currently uses a private service to supply this information. The service provides inflation estimates for 10 years and the last years inflation rate is used to project to 50 years. Practices, products or services that are currently used in industries that apply a similar time scale or similar type of work or have a more accurate process would be of benefit. Allan Widger, Executive Director, Engineering Standards Branch, Saskatchewan Highways and Transportation, was curious that WSDOT was doing a survey of other states practices. In Allan’s email he said, “I was surprised to receive this question from Washington State since Saskatchewan just had a consultant review our Construction Bid Price Trends and estimating for our Department and most of the informatio