Agency for statistics of Bosnia and Herzegovina 

Business Statistics Sector – Department for Industry and Construction Statistics

Zelenih beretki 26, 71 000 - Sarajevo

Producer Price Index in Construction/residential buildings (CPPI) is calculated by using the Standard Components Method (SCM). Price indices are compiled using the prices of these homogenous components. A representative construction (or a number of projects) is also chosen. The actual work entailed in its completion is broken down into precisely defined standard “construction works” or components. These indices are then aggregated for the residential building. Data are collected by a reporting method using the Quarterly Report on Prices of Construction works on residential buildings (K KPS GRAĐ PCG).

• Classification of Economic Activities of BiH 2010 (KD BiH 2010) for enterprises and local units (fully harmonized with all levels of NACE Rev.2).

• Classification of Types of Constructions in BiH (KVGO BiH) which is identical to Classification of Types of Constructions - CC.

It covers the construction-related economic activities listed in section F - Construction according to the Classification of Economic Activities KD BiH 2010 harmonized with Statistical Classification of Activities in the EU, (EU NACE Rev. 2.), divisions F41- Civil construction (excluding 41.10 Development of building projects) and 43 - Specialized construction activities. The selection of statistical units was done using both stratification variables and the top-down method (the sample is based on the cut-off method). The main criteria for the selection of units in the sample are: Unit is active, financial statements have been submitted, and criteria of turnover.

The main purpose of this indicator is its use as a deflator, so it’s possible to compare the deflated value of production in construction over the periods. Producer Price Index in Construction (CPPI) is compiled from the collected price observations through time. Producer Price Index in Construction/residential buildings is an output index – it measures the rate of changes in the prices of construction works quarterly. The appropriate price for calculating the CPPI is the basic price that excludes VAT and similar deductible taxes which are directly linked to turnover. Price indices are calculated as a weighted average of the “relevant products”, in this case, performed construction works. Price is the unit value of construction work performed/conducted by the construction company in the reporting quarter. The price includes the invoiced unit value of the built-in materials, labor costs, and the margin of contractors for each type of construction work by appropriate measurement unit, expressed in KM (excluding VAT). Four main groups of construction works are identified for selected typical residential buildings and are: Architecture and construction works, Plumbing and sewers works, electrical installations works and Heating installations work. Indices for sub-groups, groups of construction works and total CPPI are calculated by using the Laspeyres formula.

Reporting units are business entities engaged in section F - Construction, in divisions 41 - Civil construction (excluding 41.10) and 43 - Specialized construction activities, according to the Classification of Activities of the KD BiH 2010 which is based on the Statistical Classification of Activities in the EU, (EU NACE Rev. 2.). Entrepreneurs are excluded from the survey.

This survey does not cover the reporting units (enterprises and LKAUs) outside the territory of Bosnia and Herzegovina).  Observation units coincide with reporting units.

Reporting units are businesses entities/legal units which are, by the main activity in the Statistical Business Register registered in divisions F41 (excluding 41.10) and F43 of KD BIH 2010, as well as businesses entities/legal units which are, by the main activity, registered in other activities (KAUs) but were misclassified or perform those activities additionally.

The survey on Producer Prices of Construction works on residential buildings (K KPS PCG) is based on the cut-off sample by using a number of employees variable (10 and more employees).  Entrepreneurs are not included in the target or frame population. Based on data available from the Statistical Business Register of BiH. In 2022, there were 225 enterprises selected into the sample.  

The BiH territory (includes two entities – the Federation of Bosnia and Herzegovina, Republika Srpska and the Brčko District). 

In accordance with the requirements of EBS Regulation, CPPI is conducted on a regular quarterly basis. Data are published since the first quarter of 2016 for Total index, Architecture and construction works, Plumbing and sewers works, electrical installations works and Heating installations works, following a quarterly frequency. 

The figures calculated each quarter show the development from the base period, using an average of 2015. The weighting system for CPPI in Bosnia and Herzegovina is based on the bill of quantity for a typical residential building. The weights should be updated every 5 years. For each activity price, an elementary index is calculated on the company level by dividing the price in the current period and the price from the base period. Each collected price has a corresponding base price.

Indices are calculated and published on the previous quarter and recalculated to a common base year (currently 2015=100) with chain linking. 

Units of measure fro CPPI are indices and percentage changes (%).

The reference period of this report is 2022. Data are collected in quarterly periodicity.

• Law on Statistics of BiH (Official Gazette of BiH No. 26/04 and 42/04), as well as laws on statistics of the entity statistical institutions. The Agency for Statistics of Bosnia and Herzegovina is responsible for data collection, data processing and data publishing for the state level (BiH level) as well as for the implementation of methodologies in all three statistical institutions in BiH in a unique way;
• Multi-annual statistical work programs for BiH (2021 – 2024) and Annual work plans of BiH;
• Strategy for development of statistics of Bosnia and Herzegovina 2030; 

Data delivery/sharing between the Institutes of Statistics from the entities (Republic of Srpska Institute for Statistics and the Institute of Statistics of the Federation of BiH) and the Agency for Statistics of BiH is regulated by Laws on statistics as well as Agreement on data sharing between all three statistical institutions;

-          Data sharing to external users -  state institutions in the country is regulated by Law on Statistics and other laws which regulate the work of state institutions (for example Directorate for Economic Planning of BiH, Ministry of Finance of BiH; Central Bank of BiH, etc.).

-          Statistical Office of the European Union (Eurostat);

-          External users – international organizations like UN Statistics Division (UNSD), International Monetary Fund (IMF), World Bank (WB), etc. based on their requests and/or agreements signed;

Other users (students, academic community, individual users, etc. in accordance with special procedures defined by the Agency together with the individual agreements signed).

Confidentiality of statistical data has been regulated by law, and personnel conducting statistical surveys are obliged, under the same legislation, to protect confidentiality.  The Law on Statistics of BiH (Official Gazette of BIH 26/04 and 42/04 - Chapter XI - Articles 23-29) sets forth the principle of confidentiality as one of the main principles.  The Agency of Statistics of BiH distributes statistics in accordance with the principles of the European Statistics Code of Practice, and especially with the principle of statistical confidentiality.  

The document titled “Book of Rules on Protection of Statistical Data in the Agency for Statistics of Bosnia and Herzegovina” contains the procedure to secure confidentiality during data gathering, processing and dissemination - which includes protocols securing individual data to which access is allowed, rules defining confidential cells in the output tables and procedures for detection and prevention of subsequent disclosures, as well access to micro-data for the survey purposes.

The release calendar for Statistical Press Releases in BiH is published in advance for the entire year and it contains detailed information about all publications planned to be published. In December every year, the Agency for Statistics of BIH publishes on a website a calendar with accurate dates and time of publication of statistics for the next year.  The calendar is published on the website in four language versions (Bosnian, Croatian, Serbian and English languages) and in pdf format. CPPI – T+55 days after the end of the reference quarter for the previous (reference) quarter (for example, 25th May for the 1st quarter as reference quarter).

Release calendar for Statistical Press Releases in BiH for 2022 is available at the following link: http://bhas.gov.ba/Calendar/?lang=en

All publications are published in accordance with the defined release calendar on exactly the specified date, at 11 o’clock, on the Agency’s website.  If the publishing of the press release will be delayed, the relevant information shall be posted on the website and a new date/time shall be published. All publications intended for users are available in 4 languages, that is, 3 local languages plus an English version. Users shall not have access to new data prior to their official publication on the Agency’s website, nor is it possible for them to be granted access to data earlier. 
The principle that all users should have equal access to statistical data on an unbiased base is stipulated in Article 8, paragraph (2), subparagraph h) and Article 19, paragraph (2) of the Law on Statistics of BiH, and the Agency for statistics of BiH strictly comply with it in practice.  

Producer Price Index in Construction/residential buildings (CPPI) for BiH is disseminated on a quarterly basis.

Press releases of the CPPI are published on the T+55 days after the end of the reference quarter for the previous quarter, in accordance with the defined date of publishing in the Release calendar, at 11 o’clock, on the Agency’s website: www.bhas.gov.ba in pdf format and also as a hard copy, upon request. 

 -  Producer Price Index in Construction/residential buildings (CPPI) in Bosnia and Herzegovina for the quarter ___ of the current year. 
https://bhas.gov.ba/data/Publikacije/Saopstenja/2023/CON_09_2022_Q4_1_BS.pdf

-  BiH in figures – section “Construction”

https://bhas.gov.ba/data/Publikacije/Bilteni/2023/NUM_00_2022_TB_1_EN.pdf

An online database for time series on CPPI is not available.

Micro-data are not disseminated and users have no access to them.

Data on Producer Price Index in Construction/residential buildings are transmitted to Eurostat quarterly. Published data for Bosnia and Herzegovina are on its website.   

European Business Statistics Manual (2021) contains all recommendations pertaining to the compilation of short-term statistical data, including CPPI: 

https://ec.europa.eu/eurostat/documents/3859598/12453409/KS-GQ-21-001-EN-N.pdf/f67631e8-c728-e650-d777-de0d9079bf18?t=1614247963543

Methodological document on production of CPPI for Bosnia and Herzegovina is available at the following link:

https://bhas.gov.ba/data/Publikacije/Metodologije/CON_09_2017_MD_0_BS.pdf 

Methodological document prepared by the Statistical Office of the European Community is also consulted for the Producer Price Index in Construction/residential building compilation:

„Sources and methods, Construction Price Indices”, Statistics Directorate, Organisation for Economic Co-operation and Development, Paris; Statistical Office of the European Community, Luxembourg

Also, detailed indices for Construction Prices and Construction Work, from the German Federal Statistical Office, Wiesbaden, Series 4, May 1994 is used for the Producer Price Index in Construction/residential building compilation.

New EBS Regulation no. 2019/2152 is used as relevant for the production of CPPI for Bosnia and Herzegovina.

Development of the Quality Report is in progress.

The Agency for Statistics of BiH (BHAS) follows the recommendations for quality management provided in the European Statistics Code of Practice (CoP) and implements the guidelines provided in the European Statistics System Quality Assurance Framework (QAF).  More details about quality assurance and all procedures describing the BHAS’s quality policy are contained in the document:  BHAS Quality management policy and mechanisms available at website:

https://bhas.gov.ba/Content/Read/92?title=Kvalitet

The quality of data corresponds to the requirements of the principles of relevance, accuracy, timeliness and availability and comparability.  Producer Price Index in Construction/residential buildings is a very important indicator used in BiH and beyond. The indices pertain to the entire BiH territory and are produced for the level – Total index, Architecture and construction works, Plumbing and sewers works, electrical installations works and Heating installations works, in accordance with the Classification of Economic Activities of BiH 2010 (KD BiH 2010) for enterprises and local units (fully harmonized with all levels of NACE Rev.2).

The indices are based on reliable data, thoroughly analyzed and the quality of the collected data is verified, comparing them with those from the previous periods. All data, from the first quarter of 2016 onwards, are comparable and there is no disruption in the series.  

Key users of the survey in statistics data are:

• International main users: Eurostat, IMF, UN/UNECE, OECD, WB
• National main users: Directorate for Economic Planning of BiH with the Council of Ministers of BiH, Foreign Trade Chamber of BiH, Central Bank of BiH, Ministry of Finance of BiH, other bodies and institutions of the Government
• Other users: business entities – enterprises, associations of employers, researchers and students, media and the general public.

Internally, these data are used for economic analysis of the residential buildings domain, for deflation in the National Account statistics for the production of the Gross Domestic Product, for contract escalation and in the Short-term Business Statistics

The Agency for Statistics of BiH is conducting a user satisfaction survey, carried out in 2020. This survey will be conducted in 3-annual periodicity.  A total of 242 users was asked to respond to the questionnaire and 107 users provided their responses.  Most interviewees visit the internet site and use the Agency’ statistical data occasionally (37.0%) or monthly (24.0%), at the same time, our website is daily visited by 7.0% of interviewees. Most interviewees are interested in the statistical field of population statistics (64.0%), employment and salaries (56.0%). A report on the survey conducted is posted on the Agency’s website and is available to the users:

https://bhas.gov.ba/data/Dokumenti/Kvalitet/AZK2020_BS.pdf

Users’ main needs for data pertaining to the website notification format. Namely, for the purpose of easier data management and analysis, the pdf format of the notification does not suit the users’ needs and efforts are being made for Excel tables to also be posted.

Producer Price Index in Construction/residential buildings in BiH is an important primary source of data for a large number of relevant authorities which are decision-makers for the public and private sectors.  For example:

• enables the BiH authorities to prepare themselves for bilateral and multilateral negotiations within trade agreements,
• forms an important source of information for the Balance of Payments and National Accounts statistics and for economics studies,
• helps enterprises to conduct the market survey and develop their business strategy,
• indexation in legal contracts in both the public and private sectors, particularly for more detailed PPI components;

The international and national requirements of the time series are fulfilled. Indices for –Architecture and construction works, Plumbing and sewer works, electrical installations works, Heating installations works and Total index are available on a quarterly basis for national purposes and are delivered to Eurostat. It is in accordance with the requirements of EBS Regulation No 2019/2152.

Considering a high rate of responses, about 95%, overall accuracy is very good. For all reporting units included in the sample, data must be completed before data compilation (reporting units are re-called or visited and, if even after re-calling it is not possible to obtain data from them, imputation shall be applied).  The exclusion of small enterprises shall not lead to an important bias in the series

Not relevant. Quantifying sampling errors is not possible because the sample is not based on random sampling. The comprehensive survey is performed on a cut-off census (included are enterprises and parts thereof employing 10 or more persons). For enterprises with less than 10 employees' data are not collected and the sampling procedure is not applied.

This survey is compulsory and the response rate is relatively high, approximately 95%. All data are available according to deadlines. There is a certain number of businesses, approximately 5% of them, which do not provide their answers (unit non-response).  In the case of unit non-response, the following imputation methods shall be applied:  based on data from the previous quarter or based on data on the production trend of the most similar units.  In the case of non-response to certain items in the questionnaire, reporting units shall be contacted by phone, until responses are obtained.  Microdata are checked automatically during the data entry into IT application by applying numerical and logical checking controls as well as comparing data with data provided for the previous quarter. For the Entity territories, data are controlled by the Entity Institute/Office for Statistics, while for the territory of the Brčko District, the control is performed by the Agency for Statistics of BiH. For the aggregated data, checking is done by different persons, firstly by persons directly involved in the calculation of indices and then by their head responsible for Producer Price Index in Construction/residential buildings. Tables are prepared in Excel every quarter in order to check the data for each particular Entity and then to check the data/indices calculated for the BiH level.

The provisional quarterly indicators are transmitted to Eurostat in the required form (for the Total CPPI index). Data collection has been done in a quarterly frequency. Reporting units have the deadline for data delivery 25^th in the month for the previous (reference) quarter. Eventually, two more days are available for re-calling of reporting units which didn’t deliver the data in order to get the data from all surveyed reporting units. The deadline for data publishing is T+55 days (for the level of BiH and the Brčko District) for the Preliminary results.

There is no difference between the announced and actual date of the publication (according to the Release Calendar).  All 4 press releases of the quarterly surveys on the Producer Price Index in Construction/residential buildings are published on the date of publication as foreseen in the Release Calendar.  

Considering that the CPPI results are published in accordance with the EBS Regulation 2019/2152, the results are comparable with those of other countries (EU primarily) which apply these regulations, methodology, and relevant classifications

The BiH Producer Price Index in Construction/residential buildings has been calculated since 2016 and published since 2019, quarterly. Producer Price Index in Construction/residential buildings time series are calculated under a single methodology and are comparable and free of any break in series.

All comparisons of data with those from other research are made on an ad-hoc basis and are not available to users.  Comparisons are made with other construction statistics surveys. 

Data are internally comparable concerning the overall available time series data.  Data coherence is ensured by applying the single compilation method (calculation) and the weighting system

Currently, data on Producer Price Index in Construction/residential buildings are collected by using paper questionnaires which require a lot of money and human resources. Data are collected by three statistical institutions: Republic of Srpska Institute of Statistics for the territory of Republika Srpska, Federal Institute of Statistics of FBIH for the territory of Federation of BIH and the Agency for Statistics of BiH for the Brcko District of BiH territory. Approximately, 5 people are involved in the data collection process and data compilation process on an annual basis (40% of their work time). In addition, one IT expert per institution is responsible for the development and maintenance of IT application (30% of their working time). All three statistical institutions have very high costs of printing the questionnaires, postal and telephone costs. The response burden is not very high, approximately 15 minutes for fulfilling the questionnaires per respondent.

There is no clearly defined review policy except in the case of an error, wherein the corrected data shall be marked as "corrected data" and accompanied by an explanation to all users of the reasons for the data correction. This is published in official publication as well as on the website of the Agency, and sent to Eurostat.     

Usually, big revisions are done in a way that representatives of all three statistical institutions have to discuss together and agree on new proposed Statistical Standards/methodologies which will require data revision. Main changes in the methodology shall be published on the Agency’s website.  All methodology changes are thoroughly explained in the Press release, in the section Methodological Notes. Corrections of Press releases resulting from errors have been published automatically by releasing a revised/corrected Press release including a note and explanation to users concerning the reason for the revision/correction.  Data on Producer Price Index in Construction/residential buildings are published every quarter as preliminary data, including a note that, when publishing the data for the next quarter, preliminary data from the previous quarter shall become final. Data on Producer Price Index in Construction/residential buildings are published 55 days after the end of the reference quarter (on 25th May, 25th August, etc.). 

Quarterly statistical survey, by mail, using the K KPS GRAĐ PCG questionnaire.

Quarterly

Producer Price Index in Construction/residential buildingsdata for BiH are collected through the statistical survey K KPS GRAĐ PCG conducted by mail and using the hard-copy questionnaires. Data are collected through the cantonal/ regional offices of the Entities – for the Entity level and through the Brčko District Branch Office of the Agency for statistics of BiH for the territory of the Brčko District

The Entity Institutes/Offices for Statistics perform entry and validation of data for their Entity territory, while the Agency performs that for the territory of the Brčko District. The Entity Institutes/Offices provide the Agency with all data required for the compilation of Producer Price Index in Construction/residential buildings data at the BiH level, in agreed formats. Data cross-checking controls are applied. If “Suspicious” data are found, they are sent back to the Entity's statistical institutions for checking and verification. The Entity Institutes/Offices for Statistics recheck data and, if required, a phone call-back procedure is applied or pays a visit to them, if it is necessary. Data validation is done automatically by applying predefined data controls through IT applications. All verifications are performed through the IT application for CPPI. The following set of formal and logical controls are defined for data editing: for inliers, the logical control is the occurrence of three consecutive quarters without price change, with standardized reasons as consistency check; for outliers, the logical control is a control range for both unit values and price developments, e.g. ± 10 %, also with standardized reasons as a consistency check.
A control range for unit values should be revised periodically based on previous data, e.g. for the previous 8 quarters; for non-response, the logical control is the occurrence of the missing questionnaires (unit non-response) or missing, some prices (item non-responses). In all cases of non-response, a consistency check is extensive contact with reporting units. If unsuccessful in contacting these units, treatment of non-response is imputation. In case of unit non-response for several consecutive quarters, it could be rotating of the sample (replacing a unit that does not respond with a new one). In cases when item non-response appears, because works are no longer performed, a new or substitute reporting unit should be reported using an overlapping approach, especially when we have less than 3 reporting units for that type of work. It is also advisable to follow up on reasons for price changes which could indicate if they are caused by quality changes. For the data transmission to Eurostat, a file format has been developed in IT application. . For the data transmission to Eurostat, a file format has been created by using a special IT tool. A new SDMX-ML format is used for data transmission to Eurostat. No validation controls and checking are applied to this file because the national validation rules have already been applied.

Data for Producer Price Index in Construction/residential building compilation are collected by using the Quarterly report K KPS GRAĐ PCG. Producer Price Indices for residential buildings in BiH are calculated by using the Standard Components Method (SCM). Price indices are compiled using the prices of these homogenous components. The weighting system for Producer Price Index in Construction/residential buildings in BiH is based on the Bills of quantities for the typical residential building. A number of representative construction enterprises that have recently performed any of these construction works are surveyed to determine the price they have actually agreed to or invoiced for these construction works. Calculation of weights on the group level is done by using the values ratio of performed construction works for the group level of works and the total value of performed construction works for the typical residential building. Each group of works consists of a certain number of sub-groups of construction works. Price indices are calculated from prices of representatives of selected reporting units by aggregating simple price indices into an aggregate using a modified Laspeyres formula.

Adjustment procedures (i.e. calendar and seasonal adjustment) are not applied to CPPI. 

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