24 JUN 2019
The Infrastructure and Projects Authority's recent report - Best practice in Benchmarking, highlighted the importance of using an appropriate rebasing adjustment to bring project data to a common date and location.
It states that clients and others carrying out benchmarking studies should consider using a bespoke index to adjust prices that reflect the nature of the project(s) being benchmarked.
The report also draws attention to the use of Price Adjustment Formulae Indices (PAFI) – previously known as Baxter Indices – that can be combined and weighted to reflect the resources used on a project.
It also discusses international rebasing and references Eurostat and the World Bank who publish Purchasing Power Parity (PPP) indices for construction.
BCIS provides many of the indices used in the construction industry, including PAFI. BCIS has over 50 years' experience in developing its own indices and bespoke indices for governments, clients and contractors.
BCIS has recently launched an online service specifically for the civil engineering sector – Civil Engineering Trends and Forecast.
RICS Data Services is currently involved in preparing the construction PPPs for Eurostat and the World Bank.
If you are involved in a benchmarking exercise in the infrastructure sector, BCIS would be happy to discuss indexation and international rebasing.
For further information contact David Crosthwaite.