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Construction Cost Indices for Civil Engineering Projects

The cost index for civil engineering projects show the trends in prices for construction work in Denmark. It is used, among other things, for regulation of building contracts.

Statistical presentation

The cost index for civil engineering projects shows trends in prices for work performed by different contractors in civil engineering projects: Earthwork, asphalt work, concrete structures, iron structures and sub-indices for traffic performance by lorries and materials and machinery. Trends in costs for construction of roads are also monitored based on a weighting of indices for earthwork, asphalt work and concrete structures.

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Statistical processing

The indices are calculated on the basis of information from the Price index for domestic supply, the Producer price index for services (regarding freight transport by road), as well as wage rate agreements between the Danish Association of Builders (Dansk Byggeri) and the United Federation of Danish Workers (3F).

For all indices sub-indices for labor costs and number of main cost groups are calculated. These sub-indices are weighed together to form the main indices. The weights reflect the shares of labor costs, material costs and equipment costs of the total costs of performing civil-engineering projects.

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Relevance

The purpose of the Construction cost indices for civil engineering projects is to reflect the development in the costs of civil-engineering projects. It is mainly used for regulation of building contracts. The indices are utilized primarily by construction organizations, contractors, building owners, lawyers and public authorities.

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Accuracy and reliability

The weighting of the indices for earthwork, asphalt work, concrete structures, iron and steel structures is prepared on the basis of an analysis of completed and ongoing construction work. In agreement with the Danish Roads Directorate, State Railways and the Danish Association of Builders the weighting is finally determined. The weighting for the construction cost index for roads is prepared in collaboration with the Danish Roads Directorate on the basis of an analysis of various completed motorway and highway projects.

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Timeliness and punctuality

The statistics are published quarterly at the beginning of February, May, August and November. The statistics are usually published without delay in relation to the scheduled date. Construction cost indices for civil engineering projects are compiled quarterly at the end of March, June, September and December.

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Comparability

The construction cost index for civil engineering projects was calculated for the first time in 1959.

The indices have since then changes both weights and calculation method several times, thus they are not directly comparable over time when going back to 1959.

The Norwegian statistical agency are producing a cost index for road construction which is comparable to the Danish indices.

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Accessibility and clarity

The statistics appear in News from Statistics Denmark, in Prices and consumption, in Main Indicators.

Annual publications: Statistical Yearbook and Statistical Ten-Year Review.

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