Which index is used for estimating project costs based on specific attributes?

The Marshall-Swift Index is specifically designed to estimate project costs based on various attributes, making it particularly useful in the construction and real estate sectors. This index takes into account factors such as labor, materials, and construction methods, providing a detailed and tailored approach for appraising project costs. It helps professionals in financial planning and budgeting to develop more accurate cost estimates by adjusting historical costs to current conditions based on specific project attributes.

The other indexes listed have different purposes. The Consumer Price Index primarily measures inflation by tracking the price changes of a basket of consumer goods and services. The GDP Deflator is an economic metric that reflects the level of prices for all new goods and services produced in a country, serving as a general inflation measure. The Producer Price Index, while also an inflation measure, focuses on the prices producers receive for their products at wholesale rather than providing detailed cost estimations for specific project attributes. Therefore, the Marshall-Swift Index stands out as the best choice for estimating project costs in this context.