Basic concept of indexers

Indexers are indicators or references used to measure the variation of prices, costs or values ​​in a certain sector or context, allowing contracts, budgets or investments to be adjusted according to economic fluctuation. In the construction field, indexers are essential to ensure that contracts adapt to changing market conditions, especially in terms of costs of materials, labor and associated services.

Generally, indexers are expressed as percentages or numerical indices that reflect the evolution of a specific set of economic or material variables. Its main function is to avoid financial imbalances between the parties involved in a project due to inflation or other external economic factors.

General economic indexers

General economic indexers include indicators such as the Consumer Price Index (CPI), the Producer Price Index (PPI) or the Cost of Living Index. These indices reflect the general variation in prices in an economy and are used to adjust contracts that do not require sector specificity. In construction, its use is frequent in projects where specific indices are not available or for general cost adjustments.

The CPI, for example, measures the average variation in the prices of a representative basket of goods and services consumed by households. Its application in contracts allows maintaining the purchasing power of the parties against general inflation.

However, these indices do not always accurately reflect the particularities of the construction sector, which is why in many cases specific indexers are preferred.

Specific indexers for construction

The specific indexers for construction are designed to reflect the evolution of the sector's own costs, such as materials, labor, machinery and other inputs. Among the most used are the Construction Cost Index (CCI), Construction Materials Index and other sectoral indices published by government or private entities.