Effect of escalation on project costs
- Bangkok : Asian Institute of Technology, 1982
- v, 65 p.
- Thesis ; no. ST-82-27 .
- Asian Institute of Technology. Thesis ; no. ST-82-27 .
A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering School of Engineering and Technology
Thesis (M.Eng.)- Asian Institute of Technology, 1982
This research deals with the effect of price escalation on project costs. Escalation clauses from seven different sources were reviewed and an escalation model, based on the detailed approach, suitable for building projects is proposed. Cost breakdown for thirteen building projects built in the Bangkok vicinity classified into four building categories were analyzed to summarize the cost coefficients for use in the proposed escalation model. For forecasting the future cost trends, the price indices for labor, equipment and various materials were established and regression analysis was done. The study was also extended to calculate the new cost and capital needed due to escalation. Finally, two examples were used to demonstrate the application of the findings.