Construction Price Index Prediction through ARMA with Inflation Effect: Case of Thailand Construction Industry
Article
Article Title | Construction Price Index Prediction through ARMA with Inflation Effect: Case of Thailand Construction Industry |
---|---|
ERA Journal ID | 210216 |
Article Category | Article |
Authors | Maqsoom, Ahsen, Prasittisopin, Lapyote, Musarat, Muhammad Ali, Ullah, Fahim and Alqahtani, Fahad K. |
Editors | Hromada, E., Kaderabkova, B. and Cermakova, K. |
Journal Title | Buildings |
Journal Citation | 14 (5) |
Article Number | 1243 |
Number of Pages | 23 |
Year | 2024 |
Publisher | MDPI AG |
Place of Publication | Switzerland |
ISSN | 2075-5309 |
Digital Object Identifier (DOI) | https://doi.org/10.3390/buildings14051243 |
Web Address (URL) | https://www.mdpi.com/2075-5309/14/5/1243 |
Abstract | Over-budgeting due to inflation is a common phenomenon in the construction industry of both developed and developing countries. Inflation, with time changes, leaves an adverse effect on the project budget. Hence, this study aims to focus on the construction price index (CPI) behavior and inspect its correlation with inflation in Thailand’s construction industry as there has not been much work performed. The prediction of CPI was made from 2024 to 2028, relying on the data set from 2000 to 2023. The relationship between inflation and CPI categories helps in prediction by considering inflation as the independent variable and CPI (All Commodities, Lumber and Wood Products, Cement, and Iron Products) as the dependent variable that was incorporated in EViews to perform automated ARIMA forecasting. The correlation results show that out of four CPI, only Iron Products showed a significant relationship with inflation. For All Commodities, Lumber, and Wood Products, the predicted values were fluctuating, while for Cement and Iron Products, a clear seasonal pattern was observed. This prediction gives a direction to construction industry practitioners to make necessary adjustments to their budget estimation before signing the contract to overcome cost overrun obstruction. |
Keywords | Budget; construction price index; cost overrun; inflation; construction projects; prediction |
Article Publishing Charge (APC) Amount Paid | 4367.0 |
Article Publishing Charge (APC) Funding | Researcher |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 330202. Building construction management and project planning |
400505. Construction materials | |
Byline Affiliations | Chulalongkorn University, Thailand |
PETRONAS University of Technology, Malaysia | |
School of Surveying and Built Environment | |
King Saud University, Saudi Arabia |
https://research.usq.edu.au/item/z651w/construction-price-index-prediction-through-arma-with-inflation-effect-case-of-thailand-construction-industry
Download files
22
total views14
total downloads2
views this month1
downloads this month