cost of goods and services - inflation?

As stated in Page 6, the present year is 2011. But on page 9, it says that the amounts and costs of goods and services are estimates based on the Fairgrove project in 2005. Are these given estimates in terms of Year 2005 or Year 2011 prices? In other words, do we have to adjust these prices for inflation before we can use them for our costing? Is so, can we just use an assumption such as "inflation is assumed to be 3% per year"?

Technically you should scale the prices or make an allowance. Although this is commercially important, this is not a very important part of the assigment. Don't spend long doing this, as other teams won't be marked down for not doing it.