copyright 2010, the world bank group. all rights reserved. 1 construction statistics, part 2...

Copyright 2010, The World Bank Group. All Rights Reserved. 1

Construction statistics, part 2

Business statistics and registers

Copyright 2010, The World Bank Group. All Rights Reserved.

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 enterprise-level 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

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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

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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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DifficultiesConstruction 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

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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

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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.

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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:– 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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copyright 2010, the world bank group. all rights reserved. 1 construction statistics, part 2...

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