Escalation

This system table allows you to enter cost escalation into AMT on a specific date for labour, miscellaneous, and parts costs. Parts escalations are listed per Manufacturer.

Escalation refers to price changes over time and is sometimes referred to as indexation. If a budget projection is priced in Year 1, for a contract spanning several years, actual costs could be higher than the budget pricing, simply as a function of inflation over time.

To harmonise comparisons between budget and current projections, escalation is applied to budget prices to adjust these values to a current levels.

Future projections of both current and budget are made at today's escalated values.