PAFI continued to be the accepted industry measure, widely used on longer term contracts, particularly in civil engineering but also for specialist agreements on contracts for minerals extraction, 106 agreements, etc.
Accessed over 100,000 times
The sudden price shocks of the past couple of years led to a level of innovation in sharing the risk of inflation. In addition to fully fluctuating contracts, some contracts were let with limited fluctuations covering the most volatile trades and resources, such as steel, timber and asphalt.
There were also contracts that allowed for the pre-ordering of materials, some which included prime cost of price sensitive items and some where the forecast increases were declared and adjusted, if the out-turn was above a certain percentage of the forecast.
This has resulted in a significant increase in the use of the PAFI indices, which were accessed well over 100,000 times in 1Q2023.
Usage up by 200%
We have compared the number of times the indices were accessed by subscribers to the BCIS PAFI service in the latest quarter, with a similar period in the quiet days before COVID-19 and the subsequent shocks to the market. This shows that usage of all the current series* was up over 200%.