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Inflation and Escalation

Escalation sets control the escalation/inflation for operating costs, capital, and processing fees.  For price escalation see Escalating Price Sets.  To edit these escalation sets:

1. Select Admin - Escalation sets from the main menu
2. Edit the escalation values
3. Press the "Save" Button
4. Close the window
5. Go to the project General data, and link the new escalaton to your project (see General Data / Project Data)

Escalation can be entered for Opcost, Capital and Processing.  The effective date reflects when the escalation occurs.  The actual escalation "time zero" is the project start See Dates for more information.

Escalation can be entered in either yearly, or monthly.  If it is yearly, then the effective rate is in %/year.  If it is set to monthly, then it is %/month.



Yearly escalation will apply the escalation as a "step-change" from one year to the next, while monthly, will escalate throughout the year.  This affect can be seen in reporting, when you report monthly.

See also