What Is a Building Price Index?

The price index of construction and installation projects is a statistical relative number indicating the direction and degree of change in the price of construction and installation projects in different periods (usually one year). It can be used to eliminate the impact of changes in the price of construction and installation projects on changes in total engineering costs. It is generally represented by a number of selected construction and installation companies or their completed units. First, the direct cost price index and other cost price indices are compiled separately, and then compiled in the form of a harmonic average index. ^[1]