Non-residential Building Construction Price Index

The composite price index for non-residential building construction decreased 0.4% in the fourth quarter compared with the previous quarter. The quarterly drop in the price index was mainly due to a slight decline in the price of construction materials.

Among the seven census metropolitan areas (CMAs) surveyed, Edmonton (-1.6%) posted the largest quarterly decrease, while only Montréal (+0.2%) and Halifax (+0.1%) registered increases.

Year over year, the composite price index for non-residential building construction was down 7.7%. Of the CMAs surveyed, Vancouver (-15.9%) recorded the largest decline, while Montréal (+1.2%) was the only CMA to post an 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 census metropolitan areas or 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 fourth quarter 2009 issue of Capital Expenditure Price Statistics (62-007-X, free) will be available in April.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free 1-888-951-4550; 613-951-4550; fax: 613-951-3117; ppd-info-dpp@statcan.gc.ca), Producer Prices Division.