Data quality, concepts and methodology: Non-residential building construction price indexes

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(Tables 327-0043 and 327-0044: 2002=100 quarterly 1981 to present)

Introduction

These indexes measure contractors' selling price change of non-residential construction (i.e., commercial, industrial and institutional). The indexes relate to both general and trade contractors' work and exclude the cost of land, design and real estate fees.

Characteristics

General

Sample items of work-in-place to be priced were selected from five different buildings. Three of these buildings (office, warehouse and shopping centre) fall in the category of commercial building, one building (light factory) falls in the category of industrial building and the school falls in the category of institutional building. All prices are collected directly by Statistics Canada quantity surveyors and include costs for materials, labour, equipment, relevant federal (until 1991) and provincial taxes, and contractor's overhead and profit. Value Added Taxes such as the Federal Goods and Services Tax (GST), the Quebec Sales Tax (QST) and the Harmonised Sales Tax (HST) are not included.

Frequency of pricing

Beginning in the first quarter 1988, prices are collected for all 5 models in six census metropolitan areas (CMAs) and the Ontario part of the Ottawa-Gatineau CMA. In the years 1986 and 1987, prices were collected each quarter in Montreal, Toronto and Vancouver for all 5 models. In Halifax and Edmonton, prices were collected semi-annually in the second and fourth quarters and in Ottawa and Calgary, prices were collected semi-annually in the first and third quarters. Price movement was estimated for the intervening quarters.

Prices used

The prices for work-in-place are obtained through phone surveys from sub-contractors and general contractors on the basis that they are bidding on a fixed specification and quantity in the real market and as such, include the current overhead, profit and market conditions. Prices for certain materials, labour rates, rental of equipment, municipal charges and sales taxes are obtained from a variety of secondary sources, particularly for the mechanical and electrical trades.

Weight base

Weights are derived from detailed cost analysis of each structure wherein quantities for each model were expressed in 2005 price levels. The office, light factory, school, warehouse and shopping centre models used were derived from the specifications of structures built in the mid 2000's. Weights used at the CMA, building category and seven CMA composite levels are derived from the Building Permits Survey (Survey ID 2802).

Index formula

A fixed weighted formula is used at the model level. A Chain-Laspeyres index formula is used for aggregations at the building category, the CMA and seven CMA composite levels, for which the weights are derived from building permit data for the previous three years valued at the price levels of the fourth quarter of the last year.

Revisions

The figures of the most recently published indexes are subject to revision but all other figures are final.

Historical data

1972 to 1983 on a 1976 base for four CMAs (Montreal, Ottawa, Toronto and Vancouver) and three models (Office, Factory and School).

1981 to 1989 on a 1981 base for seven CMAs (Montreal, Toronto, Vancouver, Halifax, Ottawa, Calgary and Edmonton) and five models.

1986 to 1997 on a 1986 base for seven CMAs (Montreal, Toronto, Vancouver, Halifax, Ottawa, Calgary, and Edmonton) and five models. Tables 327-0034 and 327-0035.

1981 to 2001 on a 1992 base for seven CMAs (Montreal, Toronto, Vancouver, Halifax, Ottawa, Calgary, and Edmonton) and five models. Tables 327-0001 and 327-0002.

1981 to third quarter 2008 on a 1997 base for seven CMAs (Montreal, Toronto, Vancouver, Halifax, Ottawa, Calgary and Edmonton) and five models. Tables 327-0039 and 327-0040.

1981 to current quarter on a 2002 base for seven CMAs (Montreal, Toronto, Vancouver, Halifax, Ottawa, Calgary and Edmonton) and five models. Tables 327-0043 and 327-0044.

Reference documents and further reading

For further information, contact Dissemination Unit at telephone: 613-951-4550, toll-free: 1-888-951-4550, fax: 613-951-3117, e-mail: ppd-info-dpp@statcan.gc.ca, Producer Prices Division, Statistics Canada, Ottawa, Ontario, K1A 0T6.

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