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<br />40 <br /> <br />CONSULTING ENGINEERING <br /> <br />If construction is not started promptly, and considerable time elapses between <br />estimate and conSltuction, another factor must be included. Construction costs <br />have been rising in the United States for many years and, if the present (1974) <br />cycle of inflation continues, such rises will occur in the future. <br />There are many studies of trends of construction costs available, one of the <br />best being the Index of Construction Cost of the Engineering News-Record. <br />With a 1913 base of 100, recent indexes are as follows: . <br /> <br />Annual <br />Year Average <br />1964 .......................... 936 <br />1965 ..........................971 <br />1966 ......................... .1019 <br />1967 ......................... .1070 <br />1968 ......................... .1155 <br />1969 ........................ ..1269 <br /> <br />1970 ......................... .1386 <br />1971 ......................... .1581 <br />1972 ......................... .1753 <br />1973 ......................... .1895 <br />1974 .., .-..................... .2019 <br /> <br />Annual increase, <br />in% <br />3.88 <br />3.74 <br />4.94 <br />5.00 <br />7.94 <br />9.87 <br />9.22 <br />l4.D7 <br />10.88 <br />8.10 <br />6.54 <br /> <br />The Engineering News-Record cautions that its". . . construction cost index- <br />es reflect wage rate and material price trends. They do not adjust for labor, or <br />job efficiency, material availability, competitve conditions, management, <br />mechanization, or other 'intangibles' affecting construction costs." <br />From the foregoing it can be seen that significant yearly increments may have <br />to be added to estimates of costs when construction is delayed. It can be seen also <br />that a definite date must be assigned to all cost estimates in the Engineer's <br />reports . <br />