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Construction Cost Indices for Civil Engineering Projects

The Construction cost indices for civil engineering projects show the trends in prices for construction of civil engineering projects in Denmark. It is used, among other things, for regulation of building contracts, and for following the economic conjuncture in the construction industry. The statistics have been compiled in various forms since 1959, but in its current form the indices for earth work, asphalt work, concrete structures, and iron structures are comparable from 1976 and onwards. The index for roads is comparable from 1996 and onwards.

Statistical presentation

The Construction cost indices for civil engineering projects shows trends in prices for work performed by different contractors in civil engineering projects: Earth work, 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, and The Building and Construction Agreement.

For all indices, sub-indices for labor costs and 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. The weights are based on an analysis of actual, completed civil engineering projects.

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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, craftsmen, lawyers and public authorities.

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Accuracy and reliability

Overall the statistics are assessed to be representative for the general trends in costs of civil engineering projects in Denmark. The weight basis is based on an analysis of actual civil engineering projects. Changes in the typical use of materials, unusual price developments etc. may therefore affect the index' accuracy. The weight basis was reevaluated in 2015, where it was deemed representative for typical civil engineering work.

For further information on the accuracy of collected prices see the documentation of statistics for the Producer and Import Price Index for Commodities.

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Timeliness and punctuality

The statistics are published quarterly at the beginning of March (4th quarter), June (1st quarter), September (2nd quarter) and December (3rd quarter). Yearly statistics (four quarter averages) are also published in connection with the 4th quarter publication. The statistics are usually published without delay in relation to the scheduled date.

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The first cost index for road fund work was compiled for March 1959 and the index for motorway work was compiled for the first time for March 1967.

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 /(Statistics Norway) produce 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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