2. A project cost estimate is prepared using current dollars in 2019. The estimate is for $26,700,000. The project is expected to start in 2020 and total duration is estimated as three years with construction starting one year from the date of estimate). Use a reasonable method for calculation of escalation factor and calculate the project budget in terms of Year-of-Expenditure (YOE $) based on mid-year of construction. Explain what sources you used to estimate the escalation factor. 3. Develop a composite index for labor costs using common labor and skilled labor index values provided in the ENR handout dated September 2019. Assume that in a typical construction job 70% of the work is done by skilled labor and 30% is done by common labor. Compute this composite labor index for September 2018 (one year ago) and August 2019 (one month ago). 4. The following table gives the average cost index based on an index of 100 for January 1995. What would be the average index for July 2019, assuming the rate of increase of prices will mirror the trend during 1991-2002? Use an average index increase for forecasting purposes (power series). Year Cost Index July 2002 July 2001 July 2000 July 1999 July 1998 July 1997 July 1996 July 1995 July 1994 July 1993 July 1992 July 1991 174.3 160.2 144.0 132.3 122.4 113.3 107.3 102.6 94.7 86.3 79.7 73.5 2. A project cost estimate is prepared using current dollars in 2019. The estimate is for $26,700,000. The project is expected to start in 2020 and total duration is estimated as three years with construction starting one year from the date of estimate). Use a reasonable method for calculation of escalation factor and calculate the project budget in terms of Year-of-Expenditure (YOE $) based on mid-year of construction. Explain what sources you used to estimate the escalation factor. 3. Develop a composite index for labor costs using common labor and skilled labor index values provided in the ENR handout dated September 2019. Assume that in a typical construction job 70% of the work is done by skilled labor and 30% is done by common labor. Compute this composite labor index for September 2018 (one year ago) and August 2019 (one month ago). 4. The following table gives the average cost index based on an index of 100 for January 1995. What would be the average index for July 2019, assuming the rate of increase of prices will mirror the trend during 1991-2002? Use an average index increase for forecasting purposes (power series). Year Cost Index July 2002 July 2001 July 2000 July 1999 July 1998 July 1997 July 1996 July 1995 July 1994 July 1993 July 1992 July 1991 174.3 160.2 144.0 132.3 122.4 113.3 107.3 102.6 94.7 86.3 79.7 73.5