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Construction Cost Trends

AE2S Nexus

AE2S

Construction Cost Trends

About Construction Cost Trends

In an effort to better prepare utilities for the potential changes in anticipated construction costs, The Source features quarterly construction cost index information from the Bureau of Reclamation. The Bureau of Reclamation’s Construction Cost Trends (CCT) include various cost indexes that include both material components and contractor’s labor and equipment costs. The CCT cost models are developed primarily from information available from:

• Engineering News-Record, weekly publication of McGraw-Hill;
• Price Trends for Federal-Aid Highway Construction, US Department of Transportation; and
• Producer Price Index (PPI), US Department of Labor, Bureau of Labor Statistics.

The CCT is a relative measure of the cost of material, equipment, and labor components in the present construction market as compared to the base year. The relative valuation and base year reference for the CCT is 100 in 1977. Although the Bureau of Reclamation tracks CCTs for multiple types of construction projects, land costs, and other indicators, only the CCT for Pumping Plants (water and wastewater treatment and pumping facilities) and Distribution Pipelines (buried pipelines) is reported by The Source.