Skip to content
Search

Content paper: Developing inflation indices for civil engineering



The Price Adjustment Formulae Indices (PAFI) have been the industry standard for use in index-linked inflation adjustment clauses in the UK since they were introduced in the early 1970s.

 

This paper describes the development and consultation process that produced the new Price Adjustment Formulae Indices for civil engineering and related specialist engineering.

 

“The fair allocation of risk is key to achieving the best value on a contract. Requiring contractors to take responsibility for risks they cannot assess or manage will result in either a high-risk premium or commercial pressures caused by insufficient provision. The availability of PAFI allows the inflation risk to be modelled to the contract. We therefore welcome this review and are keen to participate in its delivery”.

 

(Alasdair Reisner, CEO, CECA)

 

To download our 'How BCIS data supports reinstatement cost assessment' content paper please fill in the form below:

By providing your information you agree to BCIS contacting you to inform you of the latest updates to this service and other related products. All information you supply will be used in accordance to Data Protection Act,  full details can be found here RICS’ data protection notice.

If you do not wish to be contacted about these service please contact us a privacy@rics.org

Your information will not be passed on to any other third party and will only be used by RICS for this particular communication.

 

Developing inflation indices for civil engineering