Non-residential Building Construction Price Index

The composite price index for non-residential building construction increased 1.6% from the previous quarter to 159.9 (1997=100) in the third quarter, and 9.6% from the third quarter of 2006. As in the first half of 2007, the quarterly increase was mostly the result of higher labour and material costs, and the persistent strength of the non-residential building construction market.

Western Canada recorded the highest increases from the second quarter of 2007, with Edmonton posting a 3.3% increase, followed by Vancouver (+2.7%) and Calgary (+2.5%). Smaller upward movements were recorded in Eastern Canada, with Halifax recording a rise of 0.8%, followed by Toronto (+0.7%), Ottawa–Gatineau, Ontario part (+0.5%) and Montréal (+0.2%).

Edmonton had the largest change (+17.9%) from the third quarter of 2006, followed by Calgary (+17.1%), Vancouver (+13.3%), Ottawa–Gatineau, Ontario part (+6.5%), Toronto (+6.4%), Halifax (+5.9%) and Montréal (+3.4%).

Note: The non-residential building construction price index provides an indication of the changes in new construction costs in six census metropolitan areas or CMAs (Halifax, Montréal, Toronto, Calgary, Edmonton and Vancouver) and the Ontario part of the Ottawa–Gatineau CMA.

Three construction categories (industrial, commercial and institutional buildings) are represented by selected models (a light factory building, an office building, a warehouse, a shopping centre and a school).

Besides the CMA and composite indexes, a further breakdown of the changes in costs is available by trade group (structural, architectural, mechanical and electrical) within the building types.

These price indexes are derived from surveys of general and special trade group contractors. They report data on various categories of costs (material, labour, equipment, taxes, overhead and profit) relevant to the detailed construction specifications included in the surveys.

Available on CANSIM: tables 327-0039 and 327-0040.

Definitions, data sources and methods: survey numbers, including related surveys, 2317 and 2330.

The third quarter 2007 issue of Capital Expenditure Price Statistics (62-007-XWE, free) will be available in February.

For more information, or to enquire about the concepts, methods and data quality of this release, contact Client Services (toll-free 1-866-230-2248; 613-951-9606; fax: 613-951-1539; prices-prix@statcan.gc.ca), Prices Division.

Table(s).