Question

A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of an e-commerce warehouse facility in the south of the country. The firm completed a similar project in 2012 that had a construction cost of $70 million, and it wants to use the ENR Construction Cost Index (CCI) to update the cost. If the index value in 2012 was 8802 and today it is 12,250, determine the estimated cost of the facility today. (Note: CCI values may be different on its website.)

Answer 1

Answer: $97,421,041

Explanation:

Cost for the facility in 2012 = $70 million

Construction Cost Index in 2012 = 8802

Construction Cost Index today = 12250

The estimated cost of the facility today will be:

= Cost of facility in 2012 × (CCI today / CCI in 2012)

= 70,000,000 × 12250/8802

= $97,421,041

The estimated cost of the facility today is $97,421,041.