Free Download "MIT Research: Effects of Inflation and Volatility on Construction Alternatives"
Concrete Sustainability Reports (CSR) are technical publications that discuss various sustainability related topics. They are intended to provide a summary of complex topics to help design professionals and concrete industry professionals utilize concrete sustainably. CSR08 describes how Life-Cycle Cost Analysis (LCCA) is used to determine the most cost effective design alternative for assets such as buildings, roads and other infrastructure. Recent research at the MIT examined historical data on real prices and found that the assumption of constant real costs is inconsistent with historical experience. MIT recommendations include accounting for differences in inflation among materials and the general rate of inflation by using an appropriate escalation rates. 2 pages.