Transcript Construction Statistics, Part 2

Business statistics and registers
Construction statistics, part 2
Copyright 2010, The World Bank Group. All Rights Reserved.
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Large construction enterprises
• Large construction enterprises may create special problems of data
collection owing to the complex forms in which information may be
available within the enterprise
• One solution is intensive register maintenance, including complete
structuring of the enterprise in complete sets of statistical and
reporting units
• Another extreme is classifying enterprises as single-establishment
or as multi-establishment entities
• Single establishments receive a single questionnaire covering the
whole set of data required
• Enterprises receive an enterprise questionnaire covering enterpriselevel data and a set of questionnaires for its establishments which
the enterprise is then asked to report on
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Building and dwelling production
• Statistics on building and dwelling production
describe the volume of construction
• Volume is normally measured in cubic capacity
and number of dwellings of building projects
• The volume index describes changes in the value
at constant prices of new buildings
• Volume units are the number of buildings, cubic
volume, gross floor area, total area, number of
dwellings and volume of production
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Index of construction turnover
• An index of turnover of construction is comparable to an
index of industrial production
• It describes the monthly development in the turnover of
construction companies
• Indices of turnover of building construction, civil
engineering and specialized construction activities may
be calculated as sub-indices
• Apart from the original indices, seasonally adjusted
series can be calculated
Copyright 2010, The World Bank Group. All Rights Reserved.
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Renovation building
• Renovation is an important sub-activity of
construction
• Renovation is different from normal repair in that
it encompasses more complex operations
• Statistics on renovation building describe the
renovation activity of building construction
• Data maybe obtained from large-scale housing
owners and companies
• Renovation projects may be classified into various
types of renovation
Copyright 2010, The World Bank Group. All Rights Reserved.
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Construction prices
• Construction price indices are needed to calculate the
volume of production by construction industries
• These indices are used for deflation of components of
national accounts, but also for adjustment of
construction contracts and leases, and as a basis for
indexation for insurance purposes
• There is considerable variation in the concepts
underlying the compilation of construction price
indices by countries
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Difficulties
Construction price indices may be described as indices compiled from:
• Prices paid by the contractor for inputs to the construction process
• The price received for the completed output of construction activity
paid by the client
• The selling price including all of the demand side cost elements paid
by the purchaser or final owner
• Difficulties include:
– The product “building” or “construction” is not only produced by the
construction industry
– Sub-contractors selling their output to the construction industry
– The many different activities of the construction branch
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Supply side
• Most information used in the compilation of construction
price indices comes form the supply side
• However the completed building or construction is not
always produced d by one construction contractor alone
• Often the client concludes contracts with a number of
firms, also firms outside the construction industry
• Work categories correspond to the “goods” or “products”
observed in other price statistics
• For the construction contractor, the prices in question may
be either the prices of the various inputs, or the prices
received by the construction contractor for the output
Copyright 2010, The World Bank Group. All Rights Reserved.
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Output prices
• From the supply side, output prices are a
function of the following factors:
– Direct inputs: materials, labor, energy, etc.
– Indirect inputs and overheads: depreciation,
administrative expenses, etc.
– Productivity: how efficiently inputs are converted
into outputs
– Profit: a residual determined by the sales price,
and combinations of the three preceding items
Copyright 2010, The World Bank Group. All Rights Reserved.
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Demand side
• Construction price indices may also be
compiled from the demand side
• This could entail collecting information
on the price actually paid by the
purchaser
• It could also involve gathering
information on a number of additional
cost elements
• Such elements may include the price of
the land, permissions, taxes, insurance
etc.
Copyright 2010, The World Bank Group. All Rights Reserved.
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Seller’s prices
• Seller’s price indices measure changes in the prices of construction
output paid by the purchaser or final owner
• Seller’s price indices cover the total sales price of completed
construction, including not only the cost of labor and materials, but
also land, direct and indirect selling expenses, and seller’s profits
• These include both supply factors such as wage rates, material
costs, and productivity, and demand factors such as demographic
changes, incomes, and the availability of mortgage finance
• These indices are the closest approximations in item coverage to
the actual price paid for construction output
• Seller’s construction prices are close to the consumer price concept
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Standard construction indicators
• There are no internationally recommended indicators for construction
• However, many countries collect data on the following aspects of
construction:
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Building activity
Index of construction production
Building approvals
Building commencements
Construction prices of various types
Construction of infrastructure
Employment in construction
Completed dwellings
Changes in dwelling stock
Housing finance
Housing sales
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