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Production in construction

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Agency for statistics of Bosnia and Herzegovina 

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The Index (volume) of Production in Construction (IPC) is calculated based on the number of actual hours worked on construction sites. IPC is published for the level of total construction – Section F according to KD BiH 2010 (=NACE Rev.2), and it consists of the building construction indices and of the civil engineering indices.  Data are collected through a reporting method, by using Quarterly Report on Construction Activity (K KPS GRAĐ-21).

13 August 2024

The aim of IPC is to measure changes in the volume of output in regular intervals, which implies the measurement of volume trends in value added through a given reference period.  IPC has been calculated by using actual hours worked on construction sites, covering all types of construction works (new constructions and reconstructions, repairs and maintenance), and all types of constructions according to CC classification (residential, non-residential, transport, pipelines, communication and electricity lines; complex construction of industrial sites; other civil engineering).  Total hours worked on construction sites include the hours of work done by employees directly involved in the production process, that is, construction, including overtime hours, while the hours of work of the administration and all paid non-working days (such as holidays, sick leave, etc.) are excluded.  Currently, the productivity factor is not applied to the data series on hours worked. Data are collected on a quarterly basis.

Detailed definitions of indicators are described in the new European Business Statistics (EBS) Regulation no. 2019/2152 and Commission Implementing Regulation (EU) 2020/1197 (Variable 140101 - Production (volume)) as well as in the EBS Manual 2021.  

Theoretical target of the production volume index:

  • In the view of business cycle statistics, own output should be measured. The terms ‘production’ or ‘output’ in the sense of business cycle statistics do not include inputs from other units.
  • The objective of the production volume index is therefore to measure changes in the volume of value added at close and regular intervals.
  • The changes in volume of value added measured should in general approximate the value added measured by the National Accounts concepts of value added

Indices for the Building construction and Civil engineering works for Bosnia and Herzegovina are currently calculated by using hours worked, while the indices for total construction activity are calculated indirectly from these two indices by using Laspeyres’ formula. Due to fact that quarterly value added data are not available, a comparison of annual value added data and the value of construction works done has been prepared and it’s concluded that these two values have almost the same trend. Therefore, quarterly values of construction works done for building constructions and civil engineering works are used for the calculation of total IPC for BiH as a composite index.  

Reporting units are enterprises and LKAUs dealing with construction activities in Section F – Construction, divisions F41, F42 and F43 according to KD BiH 2010 (NACE Rev.2). LKAUs are used in case when the enterprise’s principal activity falls outside the NACE Rev.2 section F. This survey does not cover the reporting units (enterprises and LKAUs) outside the territory of Bosnia and Herzegovina. Observation units coincide with reporting units.

The survey on IPC (K KPS GRAĐ-21) is based on the cut-off sample by using the number of employees variable (20 and more employees). Target population covers all active enterprises from section F according to NACE Rev.2 (note: entrepreneurs are not included in target nor frame population) based on data available from the Statistical Business Register of BiH. In 2023, there were 435 enterprises selected into the sample.  

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

Data are collected in quarterly periodicity. The reference period of this report is 2023. 

Considering a very high rate of responses, about 98%, 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

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

Data for IPC compilation are collected by using the Quarterly report K KPS GRAĐ-21 based on the cut-off sample (enterprises and KAUs with 20 or more employees). Random sampling is not applied to enterprises with less than 20 employees, nor is any assessment made concerning them. Indices for Building construction and Civil engineering are calculated by correlating the hours worked in the current quarter and the previous year’s average (base year). A total index has been calculated by indirect aggregation of already calculated indices for Building constructions and Civil engineering by applying the Laspeyres formula.  The weights are defined based on the share of values of the completed Building constructions and Civil engineering works in the total value of the completed construction works in the current quarter. Values of the completed construction works in every quarter (the reference one) are used as the weights, considering that there are no available data on value-added for section F - Construction on a quarterly basis. This decision has been made on the basis of analysis performed by using annual data on value-added from the SBS survey and annual completed construction works values. It has been concluded that the annual values of the completed construction work for Building construction and Civil engineering works and their annual added value follow the same structure. It’s assumed that quarterly values of value added for Building construction and Civil engineering follows the same structure of value of performed construction works.  Therefore, it is decided that the values of the completed works are to be used as the added value approximations at the quarterly level. Currently, IPC is not adjusted for the productivity factor.

Quarterly statistical survey, by mail, using the K KPS GRAĐ-21 questionnaire

Index of Production in Construction for BiH is disseminated on a quarterly basis

The provisional quarterly indicators are transmitted to Eurostat in the required form (for total production, buildings and civil engineering). The legal deadline is 60 days following the reporting period (by countries obliged to prepare the index on a quarterly basis). Data collection has been done at a quarterly frequency. Reporting units have the deadline for data delivery 20th of the month for the previous (reference) quarter. Eventually, two more days are available for re-calling of reporting units that didn’t deliver the data in order to get the data from all surveyed reporting units. The deadline for data publishing is T+50 days (for the level of BiH and the Brčko District) for the Preliminary results. 

Considering that the IPC 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 IPC has been calculated and published since 2005, quarterly. The IPC time series are calculated under a single methodology and are comparable and free of any break in series