COST ESCALATION

James Arthur of Riskology made an interesting presentation to OPERA on 20^th January 2022, entitled “valuations and cost trends in the process industries”. We are all aware of rising prices in our daily lives, so so I guess we should not have been too surprised to learn from James that his calculations indicate that the cost escalation of process plants between December 2020 and December 2021 was between 13 and 23%. His prediction was that the escalation for 2022 would be between -3 and +3.5% but could reach 19.2%.