Every year, there is some form of construction work going on at UF's campus. In January 2018, bids were opened for a new building on campus for UFPD. The bid/construction value of the building was set at $5 Million. Another building of similar structure and purpose is planned with a bid opening in January 2023. What is the expected bid for the new building? It is given that in January 2000, the Florida Construction Cost Index had a value of 5550, while in January 2018, that value was 8000. You can use these price indices to calculate an average inflation in construction costs.

Every year, there is some form of construction work going on at UF's campus. In January 2018, bids were opened for a new building on campus for UFPD. The bid/construction value of the building was set at $5 Million. Another building of similar structure and purpose is planned with a bid opening in January 2023. What is the expected bid for the new building? It is given that in January 2000, the Florida Construction Cost Index had a value of 5550, while in January 2018, that value was 8000. You can use these price indices to calculate an average inflation in construction costs.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Every year, there is some form of construction work going on at UF's campus. In January
2018, bids were opened for a new building on campus for UFPD. The bid/construction value of
the building was set at $5 Million. Another building of similar structure and purpose is planned
with a bid opening in January 2023. What is the expected bid for the new building?
It is given that in January 2000, the Florida Construction Cost Index had a value of 5550, while in
January 2018, that value was 8000. You can use these price indices to calculate an average
inflation in construction costs.

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