One of the most important items in cost data, particularly with regards to forecasting techniques, which rely on historical data, is the cost index. The objective of the cost index is to measure changes in the cost of an item or group of items from one point in time to another. A base date is chosen and is usually given the value of 100, all past and future increases or decreases being related to this figure.

There are number of uses to which these indices can be used in the construction industry, among others as follows:

1. Updating elemental cost analysis
2. Calculation for price fluctuations
3. Identification of changes in cost relationships
4. Extrapolation of existing trends
5. Assessment of economics market conditions
6. Updating for research

View Building Materials Cost Index

1. By work section for
   

   Peninsular Malaysia	Sabah	Sarawak
   2002
   2003	2003	2003
   2004	2004	2004
   2005	2005	2005
   2006	2006	2006
   2007	2007	2007

   
   
2. By category of building for
   

   Peninsular Malaysia	Sabah	Sarawak
   2002
   2003	2003	2003
   2004	2004	2004
   2005	2005	2005
   2006	2006	2006
   2007	2007	2007

   
   
3. By material group for
   

   Peninsular Malaysia	Sabah	Sarawak
   	2003	2003
   	2004	2004
   2005	2005	2005
   2006	2006	2006
   2007	2007	2007

View the latest Building Materials Cost Index (2008)

1. By work section for Peninsular Malaysia (Apr), Sabah (May), Sarawak (May).
2. By category of building for Peninsular Malaysia (Apr), Sabah (May), Sarawak (May).
3. By material group for Peninsular Malaysia (Apr), Sabah (May), Sarawak (May).

Way back on 1st January 1980, the Government has implemented a Contract Price Fluctuations provision for building contracts. However to date, changes or adjustment to building cost indices due to inflation are only; limited to materials, excluding labour and plant and are applicable for certain categories of public building projects only and to certain extend some materials used in the civil engineering work.

CIDB will initially concentrate on the usage of the indices in the calculation for price fluctuations. By applying the indices to work undertaken during a specified period, it is possible to evaluate, to an acceptable degree of reliability, the increase in cost of resources to the contractor since the date of tender. This enables the financial control of contracts, which adopt fluctuations clause to be exercised more speedily with less ambiguity. Formula used for the Price Adjustments will be established together as an additional option to be incorporated with the existing CIDB Standard Form of Contract for Building Works 2000 Edition.

Initially CIDB is working towards the formation of the Building Construction Materials Cost Index. This was made possible by identifying major categories of building projects in Malaysia, both for public and private sector and carrying out the analysis of the breakdown of these various categories of building. CIDB officers also, together with the assistance of Jabatan Perangkaan Malaysia have been visiting selected outlets all over the peninsular for the collection of the price of major basic construction materials in the different regions.

CIDB acknowledged that this index would cover for the whole industry rather than only the public sector. This exercise will be a continuous effort in order to take care of the availability of new major materials as well as the ever changing method of construction technology. This index will be compiled on regional basis for Peninsular Malaysia initially, while for Sabah and Sarawak will follow in due course. This index will be published on a quarterly basis.

This index for Peninsular Malaysia is launched on 19 December 2003 by YAB Datuk Seri S. Samy Vellu starting with reference month July 2002. It will be updated monthly in this website.