oa Civil Engineering = Siviele Ingenieurswese - Cost escalation in economic analyses
|Article Title||Cost escalation in economic analyses|
|© Publisher:||South African Institution Of Civil Engineering (SAICE)|
|Journal||Civil Engineering = Siviele Ingenieurswese|
|Author||Douw G.S. Wolmarans|
|Publication Date||Dec 1978|
|Pages||313 - 320|
|Keyword(s)||Cost, Economic analysis, Planning and Public sector|
Cost comparisons between different solutions for planning problems are frequently based on 'present costs' or 'constant prices'. The comparisons can be expected to result in correct decisions when costs do not change with time; when costs escalate the decisions may not necessarily be correct. It is therefore necessary to establish, firstly, whether the use of present costs results in good planning decisions when costs increase and, secondly, what adjustments have to be made when increasing costs are to be taken into account.
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