Part E is a cost escalation factor that allows forward pricing of the estimated construction costs to account for inflation during the design and construction period. The cost escalation factor is the Cost Estimating Format forward pricing function.

The escalation factor should be based on a 2-year average of either the Building Cost Index or the Construction Cost Index according to the Engineering News Record. The average monthly increase (expressed as a percentage) is applied to the number of months remaining to mid-point of project construction.

The Public Assistance Group Supervisor, or designee, is responsible for calculating this percentage at the beginning of a disaster. If the escalation factor has not yet been distributed, use the chain of command to request this number. The escalation factor is not to be determined by individuals in the field.