Determination of a price index for escalation of building construction costs in Turkey

Kahraman, Serhan
Construction cost indices are developed to measure the degree of price variations in construction material and labor costs. However, each specific type of construction is a combination of unique set of materials and labor. As such, the degree of price variations referring to each specific type of construction shall be measured by specific price indices, in order to achieve more accurate results. In Turkey, Producer Price Index (PPI) published by State Statistics Institute is commonly used for the escalation of building costs. This study aims to compare the existing cost indices as well as new alternative cost indices in terms of their adequacy for the representation of variations in the building costs in Turkey. The developed price indices will be tested to measure their fit with the cost of building projects, will be compared with the price indices published by the Ministry of Public Works and Settlement and also State Statistics Institute, and finally the most adequate price indices among the examined ones to be used for building projects will be selected. Moreover, models representing past price movements will be developed.


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Citation Formats
S. Kahraman, “Determination of a price index for escalation of building construction costs in Turkey,” M.S. - Master of Science, Middle East Technical University, 2005.