Developing general indicator cost indices for the Egyptian construction industry

Abstract

The main objective of this study is to initiate general building cost indicators to serve as cost indicators for the construction industry in Egypt. The two models (Egypt 1 and Egypt 2 Indices) developed for building the indices in this paper have been derived based on the “Engineering News Record” (ENR) Indices model with modifications to better suit the Egyptian market. Egypt 1 Indices is comprised of three indices which serve as a general cost indicator for the construction industry price movement in Egypt. Egypt 2 Indices is comprised of two indices which serve as a construction cost indicator for the reinforced concrete structures price movement in Egypt. The period analyzed in this research is 11 years (1988 through to 1998). The validation of index numbers produced showed that each index does indeed represent the respective type of building for which it was computed. Further, the analysis of Egypt Indices compared to the ENR Indices revealed that both indices exhibited trends that are generally similar from the year 1992 up to 1998.

Citation

Hassanein, A.A.G. and Khalil, B.N.L. (2006), "Developing general indicator cost indices for the Egyptian construction industry", Journal of Financial Management of Property and Construction, Vol. 11 No. 3, pp. 181-194. https://doi.org/10.1108/13664380680001088