Construction Cost Living Index (CCLI) Methods with Examples

1. Materials Index

Tracks price changes of construction materials (lumber, cement, steel). Example: lumber +5 %, cement +3 %, steel +2 % → index = 3.3 %.

2. Labor Index

Measures wage changes for trades (carpenters, plumbers, electricians). Example: +4 %, +3 %, +2 % → index = 3 %.

3. Equipment Index

Monitors equipment price shifts (cranes, bulldozers, trucks). Example: +6 %, +5 %, +4 % → index = 5 %.

4. Composite Index

Average of the three sub‑indices. Example: (3.3 % + 3 % + 5 %) / 3 = 3.8 %. Most commonly used for overall construction cost adjustment.