How to calculate escalation on construction in Microsoft Excel

[hanni ball]

When one tenders on a contract, there is a clause about escalation of the contract price. If I remember correctly, one formula is for labor and one for material. Can someone please tell me how to calculate escalation on construction in Microsoft Excel.

[Go!pee]

You have not provided any details about the business rules for escalation, but I can give you some general idea. Hopefully you are keeping track of day-to-day expenses (or perhaps, even more detailed transactions). At the least, you probably have cumulative results for these items for you project. The idea (I think) is to sum up the labor and material costs and compare them to some nominal, expected values you have stored somewhere. There is also probably a target completion date somewhere, so you know whether a project is close to completion or not--this might can serve as a trigger for escalation. In logical terms, IF [days to project target completion] < 30 AND [labor cost > expected labor cost * .90] then [flag for escalation]. This is a pretty simplistic example, but without more knowledge of your business rules for escalation, it's impossible to give specific advice.