Inflation is an important aspect in the economy of any country.
At times when the inflation rate is high, the economy of the country is distorted. The construction industry suffers from the negative consequences of inflation as well. This report deals with a solution employed to offset the effects of inflation in the construction industry. After giving a basic definition of inflation, its causes and consequences, and the effects of inflation while developing construction projects, a solution to mend such problem is proposed in this paper. This consists in adjusting unit prices according to changes in price indexes, which are figures used to express changes of prices in percentage terms, in reference to a base period.