Non-residential Building Construction Price Index

The composite price index for non-residential building construction decreased 4.2% to 145.1 (2002=100) in the first quarter compared with the previous quarter. The quarterly decrease was mostly the result of declines in construction material prices and competitive conditions due to a weaker non-residential building construction market, most notably in Western Canada.

Among census metropolitan areas (CMAs), Vancouver (-10.7%) recorded the largest quarterly decrease while Montréal (+0.4%) had the only increase of the seven CMAs surveyed.

Year-over-year, the composite price index for non-residential building construction was up 1.0%. Decreases were recorded in only two CMAs, Vancouver (-9.1%) and Edmonton (-4.7%), while Montréal (+6.2%) recorded the largest increase.

Note: In the fourth quarter of 2008, the five building models used in the calculation of non-residential building construction price indexes were replaced with updated models. Also, the base year was changed to 2002=100.

The Non-residential Building Construction Price Index provides an indication of the changes in new construction costs in six CMAs (Halifax, Montréal, Toronto, Calgary, Edmonton and Vancouver) and the Ottawa 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 327-0043 and 327-0044.

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

The first quarter 2009 issue of Capital Expenditure Price Statistics (62-007-X, free) will be available in July.

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: 613-951-3117; prices-prix@statcan.gc.ca), Producer Prices Division.