Czech Statistical Office

Prices Statistics Department

Petra Hochová

Na padesátém 81

100 82, Praha 10

Czech Republic

The construction cost index, abbreviated as CCI, is a business cycle indicator showing the trend in the costs incurred by the contractor in the construction process. The construction cost index covers influences of materials, labour, plant and equipment, transport, energy and other costs.

Construction costs: The objective of the index is that it is used to determine the cost change of a new construction production over a certain period of time. Construction costs index is calculated with the use of this indices: industrial producer price, inland freight transport, forestry and labour costs. Measure unit is a percentage and an index. The source is administrative data - a secondary product of other surveys: chosen industrial producer price indices associated with construction works, price indices of forestry, price indices of inland freight transport, indices of labour costs in construction and indices of outgoings.

Material costs: The objective of the index is that it is used to determine the material cost change of a new construction production over a certain period of time. Material costs index is calculated with the use of industrial producer price indices. Measure unit is a percentage and an index. The source is administrative data - a secondary product of other surveys: chosen industrial producer price indices associated with construction works and price indices of forestry. Surveyed prices are exclusive of VAT.

Labour costs: The objective of the index is that it is used to determine the labour cost change of a new construction production over a certain period of time. Labour costs index is calculated from ondices of average monthly nominal wage and hourly rate of auxiliary works. Measure unit is a percentage and an index. The source is administrative data - a secondary product of other surveys.

Construction costs: NACE Rev. 2 section F: 25, 28, 33, 41 – except 41.10, 42, 43, 80; CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14; CC 1, 11, 111, 112.

Material costs: NACE Rev. 2 section F: 25, 28, 33, 41 – except 41.10, 42, 43, 80; CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14; CC 1, 11, 111, 112.

Labour costs: NACE Rev. 2 section F: 41, 42, 43; CZ-ISCO 71, 72, 81, 83, 93; CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14; CC 1, 11, 111, 112.

Construction costs:

• Industrial producer price indices: CPA 2008 (B 08,C 10-31,D 35,E 36)
• Price indices of inland Freight transport: CPA 2008 (H 49, 50)
• Price indices of Forestry: CPA 2008 (A 02)
• Labour costs in construction: ISCO 71, 72, 81, 83, 93 for NACE Rev.2 (section F: 41, 42, 43)

 Material costs:

• Industrial producer price indices: CPA 2008 (B 08,C 10-31,D 35,E 36)
• Price indices of Forestry: CPA 2008 (A 02)

Labour costs: ISCO 71, 72, 81, 83, 93 for NACE Rev. 2 (section F: 41, 42, 43)

Construction costs: administrative data - a secondary product of other surveys:

• 4-digit of chosen Industrial producer price indices associated with construction work. 
• Price indices of inland Freight transport (included in Market services in the Business Sphere price indices).
• Price indices of Forestry – price indices of wood used in construction works.
• Labour costs in construction - 20%: average monthly nominal wage of construction enterprises with 50 or more employees; 80%: hourly rate of auxiliary construction works.Outgoings are estimated and extrapolated values used in the past time.

Material costs: administrative data - a secondary product of other surveys:

• 4-digit of chosen Industrial producer price indices associated with construction work. 
• Price indices of Forestry – price indices of wood used in construction works.

Labour costs: administrative data - a secondary product of other surveys:

• 20%: average monthly nominal wage of construction enterprises with 50 or more employees
• 80%: hourly rate of auxiliary construction works.

Note: survey frame of entering data is statistical form – chiefly “Ceny Prum 1-12” for Industrial producer price indices, “Ceny Dop S 1-12” and “Ceny Dop Ž 1-12” for price indices of inland Freight transport, “Ceny Les 1-04” for price indices of Forestry and “Stav 1-12” or "Ceny Stav 1-04" for index of Labour costs.

Cost tracking uses the results of several sample surveys based on tracking price trends over time. A reporting unit and an observation unit is an enterprise.

Construction costs indices are put together from the administrative data - we are not able to say how many statistical units contribute to a computation of the cost indices.

A survey frame of entering data is based on the statistical sample survey – chiefly “Ceny Prum 1-12” for Industrial producer price indices (1160 observation units; 4900 representatives. It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Dop S 1-12” and “Ceny Dop Ž 1-12”for price indices of inland Freight transport (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Les 1-04” for price indices of Forestry and Hymenopthera (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.) and “Stav 1-12” or "Ceny Stav 1-04" for index of Labour costs (600 observation units in Ceny Stav 1-04 and 8 000 representatives for the quarterly survey; It is not possible to say, how many respondents or representatives belong to chosen price indices.).

The whole Czech Republic.

Construction costs: Index of Construction costs is released from 2004 and indices were calculated down to the year 2000 in 2008 and was recalculated in 2018 to the base period of 2015 average = 100.

Material costs: Indices of Material costs were calculated down to the year 2000 in 2008 and was recalculated in 2018 to the base period of 2015 average = 100.

Labour costs: Indices of Labour costs were calculated down to the year 2000 in 2008 and was recalculated in 2018 to the base period of 2015 average = 100.

2015 average.

Index.

Quarterly routine.

Statistical surveys carried out by the Czech Statistical Office are governed by terms of the State Statistical Service Act. No. 89/1995 Coll. This act defines the independence of the CZSO and its rights and duties towards reporting units. Data protection is also guaranteed by the law.

Obligation on units to provide data: reporting units (respondents = enterprises) are obligated to provide data by the law.

Without data sharing.

The confidential data is not published and is not provided to the public.

Treatment of confidential data: it is based on observation of more than 3 enterprises for statistical information. (None of enterprise has more than 85% influence on a result of calculation). In case of non-fulfilment of given condition, it is necessary to publish higher level of an aggregation.

They are disseminated aggregated indices in price statistics of construction works - the treatment of confidential data is solved.

Index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 is not released.
Index of Construction costs of residential buildings (CC 11 Residential buildings - includes CC 113) is released in "Time series" every quarter; in "Data sets" there is released yearlong data in February of the next year.
See Catalogue of products in annexes.

See Catalogue of products in annexes.

No one has prior access to the data. No one has access to the data before release.

Construction costs: index is transmitted to Eurostat as Annex B, 320 (csti). Index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 isn’t released. Index of Construction costs of residential buildings (CC 11 Residential buildings - includes CC 113) is released in an electronic version of publication every quarter with the use of CC classification; in a printed version of publication there is released yearlong data in February of the next year.

Material costs: index is transmitted to Eurostat as Annex B, 321 (cstm). Index of Material costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 isn’t released. Index of Material costs of residential buildings (CC 11 Residential buildings - includes CC 113) is released in an electronic version of publication every quarter with the use of CC classification; in a printed version of publication there is released yearlong data in February of the next year.

Labour costs: index is transmitted to Eurostat as Annex B, 322 (cstl). Index of Labour costs isn’t released. Index is calculated for Eurostat only.

Quarterly.

Identification of ministerial commentary on the occasion of statistical releases: no News release.

Name of national electronic dissemination: Price indices of Construction works, price indices of Constructions and indices of Construction costs.
(version: Czech - English, it is free on www.czso.cz).

(Time series - Quarterly)

Costs index of residential buildings (CC 11 Residential buildings - including CC 113) is released in the table No. 4 (code of publication is 011041).
Data is presented as a price index, 2015 average =100, at the 3-digit CC level, quarterly.
There are also costs indices for quarter-on-previous-quarter (q-o-q) and quarter-on-same-quarter-of-previous-year (y-o-y) in the table No. 4.

There is a national online database for construction prices statistics.

There is no microdata access.

The indices are quarterly sent to Eurostat -Annex B, 320, 321, and 322 (csto; F_CC11_X_CC113).

.

Construction costs: index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 in association with its methodical notes is released in the publication 011041 - “Price indices of Construction works, price indices of Constructions and indices of Construction costs”
(version: Czech - English, it is free on www.czso.cz).

Material costs: index of Material costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 in association with its methodical notes are released in the publication 011041 - “Price indices of Construction works, price indices of Constructions and indices of Construction costs”
(version: Czech - English, it is free on www.czso.cz).

Labour costs: methodology of Labour costs index isn’t released.

20% of data is calculated from average monthly nominal wage of construction enterprises with 50 or more employees (it is estimated for less then 20 employees)– its methodology is released on the CZSO website:

https://www.czso.cz/csu/czso/sta_m

80% of data is calculated from surveyed hourly rate of auxiliary construction works (sample survey Ceny Stav 1-04).

There are not available any specific documents of the quality of construction costs and prices. See general documents in the annexe.

See annexes - key documents of the CZSO.

Compliance with these principles is being ensured by a set of processes, procedures, and instruments, including appropriate organisational structures, system of instructions, and methods of allocation of human and financial resources of the CZSO.

The data user is Eurostat. Requirements of Eurostat in terms of time series are fulfilled. All deadlines of Eurostat (and the CZSO) are respected by the whole Prices Statistics Department of the CZSO.

The trend of index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 contains trend of index of Material costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 and trend of Index of Labour costs of construction industry. Obviously there is a strong coherence firstly between the index of construction costs and the index of material costs and secondly between the index of construction costs and the index of labour costs.

Comparability over time is linked to a common attribute of indices in the time series that they are based on the same base 2015 average. Commonly they are conducted consultations with specialized institutions in the Czech Republic. An expert pursues development of the construction industry and he has contacts with current events in the building industry. The methodology is published on the czso website.

The data user is Eurostat. Data is put together according to an assignment of the user.

Not available.

Requirements of Eurostat in terms of time series are fulfilled.

Depends on the underlying component indices. Overall accurancy is good. The underlying component indices which are used are in very good quality. Price information from sample surveys is checked by the special central office staff. Extreme price deviations are sorted out with the help of software. There is no automatic rejection; all suspicious data are re-checked by the office workers.

Commonly they are conducted consultations with specialized institutions for calculation of the cost indices. Our expert pursues development of the construction industry and he has contacts with current events in the building industry.

Depends on the underlying component indices. Not available.

Construction costs indices are put together from the administrative data - the response rate is 100%. Without its own statistical survey there is no occassion for solving of the nonresponse error.

There are not estimates in calculation of the final index and carrying of data collection is not performed. The final indicator is calculated about the 5th calendar day of February, May, August, and November. The data are published nationally and provided to Eurostat at the same time.

The following principles of non-response are applied to the surveyes from which we get input data:

Response rate: the first indicator is compiled every month after a calendar quarter. The final indicator is compiled less then one week after that. 90-100% response rate is normally achieved during the third month of the reference quarter or the following month. Final indicator is compiled when the response rate reaches 100%. It happens normally at the end of January, April, July and October. Usually the final indicator is calculated about the 10th calendar day of February, May, August and November.

Actions to speed up or increase the rate of response: a notice of opening the survey for a quarter is sent to the reporting unit during the 1st month of the observation quarter. On the 15th calendar day of the 3rd month of the observation quarter is the deadline for replies. The respondent has the opportunity to communicate via a web application, by telephone, e-mail and by mail.

CZSO workers oversee the received data and contact respondents when an error occurs.

Solving of the nonresponse error: the unit is sent a request to start of reporting prices to its data box. The company is obliged to monitor its data box, so if it does not respond, we can use a law process with a fine. But cases do not go that far. We have the opportunity to impose a fine up to CZK 100,000 on non-responding enterprises. This is guaranteed by the law No. 89/1995 Coll.

The response rate is 100%. There are not estimates in calculations.

The data is released on 46th calendar day after the end of reference quarter.

Construction costs: we have the use of administrative data on 36th day after the end of reference quarter.

Material costs: we have the use of administrative data on 36th day after the end of reference quarter.

Labour costs: we have the use of administrative data or surveyed data on 36th day after the end of reference quarter.

There is not necessary to meet the deadline in hours for construction prices statistics - we have the exact days only.

All deadlines of Eurostat (and the CZSO) are respected by the whole Prices Statistics Department of the CZSO, so all the input price indices we get in time every quarter.

There is not a geographical comparability at disposal. The whole national territory is equally covered.

Definitions of cost indices meet the requirements of CR No 1503/2006.

Comparability over time is linked to a common attribute of indices in the time series that they are based on the same base 2015 average. There are not breaks in the time series those are based on the same base 2015 average. The time series were retrospectively recalculated to the year 2000 in 2008 and was recalculated in 2018 to the base period of 2015 average = 100.

Construction costs: trend of index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 is similar to the trend of index of Construction costs of residential buildings (CC 11 Residential buildings - includes CC 113) with the use of CC classification.

Material costs: trend of index of Material costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 is similar to the trend of index of Material costs of residential buildings (CC 11 Residential buildings - includes CC 113) with the use of CC classification.

Labour costs: trend of index of Labour costs of construction industry is not broadly comparable with some other trend.

Data is not confronted with other results.

The trend of index of Construction costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 contains trend of index of Material costs of residential buildings CPA 41.00.1 Residential buildings (new buildings only) excluding CPA 41.00.14 and trend of Index of Labour costs of construction industry. Obviously there is a strong coherence firstly between the index of construction costs and the index of material costs and secondly between the index of construction costs and the index of labour costs.

Burden (respondents - hours per year):

Construction costs (Annex B, 320, csti):

It is a secondary product of other surveys - its burden is included in the burden indicated partly in A310 and D310 (we are not able to separate it). Part of the input data comes from the surveys outside of the STS.

Material costs (Annex B, 321, cstm):

It is a secondary product of other surveys - its burden is included in the burden indicated partly in A310 (we are not able to separate it). Part of the input data comes from the surveys outside of the STS.

Labour costs (Annex B, 322, cstl): 

It is a secondary product of other surveys:

80%: its burden is 571.

20%: the input data comes from the survey Stav 1-12 ... its burden is included in the burden indicated under B110, B115 and B116 (we are not able to separate it).

Cost (NSI - hours per year in 2019):

Construction costs: 16

Material costs: 16

Labour costs: 156

Indices are final with the first publication. The initially released values normaly do not change. There are fundamental revisions of price indices and their weighting system with the use of chain-linking method and one-quarter overlap - nearly every 5 years.
The revision policy applied to data released nationally and transmitted to Eurostat is the same. The major revision policy applied to data released nationally is applied also for transmissions to Eurostat. Routine and non-scheduled revisions we do not apply to this
statistics
For more information see annexes below.

The same revision policy which is applied to the national data is applied to the data sent for Eurostat.

Major Revision of construction price statistics is made nearly periodicaly. It means update of weighting scheme, update of representatives, update of classifications.
Some of time series end and some new time series are generated. With the use of a chain-linking method of revision there are not recalculated the data published in the
past. The new results are calculated from the new point of view and have it’s origin in the new weighting scheme. The coherence with the previous time series is
ensured. The data is confronted only within the construction price statistics on the CZSO. The last revision was made in 2017.
Information about revision or major changes in methodology is released on the CZSO website at the time of change. The note of forthcoming a fundamental revision isdisplayed on the CZSO website.
A revision calendar does not exist. The expected date is around the year 2023. The coherence with the contemporary time series will be ensured.
MAR = MR = 0; quality indicators MR and MAR are not provided. There are no data estimates and their revision. When using the revision chain method, there is no possibility to calculate a numerical calculation between the original and converted indices.

More information:

The administrative data has its own revision. A choice of producer price indices is updated. The first release is reliable.
Major revision (on a national level) of price indices was made in 2017 with using chain-linking method and one-quarter overlap. Aggregations of price indices were
compilated in primary time series (technical price indices) and were compiled afterwards using constants to secondary time series. Price index for Eurostat is based on
the 2015 average and has been published since 2018.
The current weighting scheme was put together from results of construction production between the years 2011 and 2016.

Construction costs: administrative source - a secondary product of other surveys:

• 4-digit of chosen Industrial producer price indices associated with construction work.  
• Price indices of inland Freight transport (included in Market services in the Business Sphere price indices).
• Price indices of Forestry – price indices of wood used in construction works.
• Labour costs in construction - 20%: average monthly nominal wage of construction enterprises with 50 or more employees; 80%: hourly rate of auxiliary construction works.
• Outgoings are estimated and extrapolated values used in the past time 

Material costs: administrative source - a secondary product of other surveys: 

• 4-digit of chosen Industrial producer price indices associated with construction work. 
• Price indices of Forestry – price indices of wood used in construction works.

Labour costs: administrative source - a secondary product of other surveys:

• 20%: average monthly nominal wage of construction enterprises with 50 or more employees
• 80%: hourly rate of auxiliary construction works.

Note:

A survey frame of entering data is based on the statistical sample survey – chiefly “Ceny Prum 1-12” for Industrial producer price indices (1160 observation units; 4900 representatives. It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Dop S 1-12” and “Ceny Dop Ž 1-12”for price indices of inland Freight transport (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Les 1-04” for price indices of Forestry and Hymenopthera (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.) and “Stav 1-12” or "Ceny Stav 1-04" for index of Labour costs (600 observation units in Ceny Stav 1-04 and 8 000 representatives for the quarterly survey; It is not possible to say, how many respondents or representatives belong to chosen price indices.).

Quarterly indices: Price indices of Forestry and Price indices of construction works (hourly rate of auxiliary construction works).

Monthly indices: Industrial producer price indices, Price indices of inland Freight transport, average monthly nominal wage of construction enterprises and indices of outgoings.

Monthly indices are recalculated into quarterly indices.

The data user is Eurostat. Requirements of Eurostat in terms of time series are fulfilled. All deadlines of Eurostat (and the CZSO) are respected by the whole Prices Statistics Department of the CZSO.

Administrative data is regularly obtained from the CZSO statistics. Most of administrative data is not published and is not provided to the public.

Questionnaires used in the survey: A survey frame of entering data is based on the statistical sample survey – chiefly “Ceny Prum 1-12” for Industrial producer price indices (1160 observation units; 4900 representatives. It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Dop S 1-12” and “Ceny Dop Ž 1-12”for price indices of inland Freight transport (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.), “Ceny Les 1-04” for price indices of Forestry and Hymenopthera (under 100 observation units and 200 representatives; It is not possible to say, how many respondents or representatives belong to chosen price indices.) and “Stav 1-12” or "Ceny Stav 1-04" for index of Labour costs (600 observation units in Ceny Stav 1-04 and 8000 representatives for the quarterly survey; It is not possible to say, how many respondents or representatives belong to chosen price indices.).

Data collection media: electronic questionnaires , e-mails, recorded delivery letters or telephones.

Input indices are compared to the indices of previous periods. Trends of construction costs indices are checked with trend of output price indices and changes are analysed.

Plausibility of the input indices guarantees the plausibility of the final construction costs indices. The input indices are plausible enough.

Weighted average is used for calculation of the construction costs indices. Weighting scheme is based on budgets of chosen constructions. The current weighting scheme was put together from results of construction production between 2011-2016.

A fundamental revision of price indices was made in 2017 with the use of chain-linking method. The weighting scheme was put together from results of construction production between 2011-2016. Aggregations of indices was put together in primary time series (technical indices) and was recalculated afterwards using constants to secondary time series – aggregations of indices can not be put together in the secondary time series.  Indices based on the 2015 average have been published since 2018. The time series were connected with the previous published data.

No grossing-up. Index of Outgoings from the index of Construction Costs is estimated; no other estimates.

WDA, SA and other calculations: no manipulations. Data for Eurostat is not disseminated nationally.

No additional comments.