Producer cost indices for construction (contract escalation) - Various indices for construction - Stopped series

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10 series are available ;

You must select at least one item from each of the lists proposed below. You will get the series corresponding to your choice.

Index (10 items)


Producing organisation: INSEE

Introduction

The indices concerning road transport, various overheads, landscape architecture, engineering and road marking are cost indices of the various activities in the construction sector, mainly used for the indexing of contracts. These indices (in French only), up until January 2014 covering the distribution of the indices of October 2013, were published and calculated by the Department for the economy, evaluation and integration of sustainable development of the Ministry for Ecology, Sustainable Development and Energy. Decree N° 2014-114 of February 7, 2014 on the national building index for all trades and the circular of February 21 from the Ministry of Economy and Finance, NOR EFIS 1404646 C, transferred that responsibility to INSEE. As from February 2014, as far as the distribution of indices of November 2013 are concerned, the general methodology, the weightings and the period of reference have been kept, but the basic indices have all been chosen from among the indices drawn up by the public statistics authority for calculation of variations.

These indices are used in the calculation of the Building and Public Works indices but can be used individually or combined.

Goals

These indices enable firms and local authorities to index contracts.

Firms and local authorities can use these official indices for contracts concerning landscape architecture (parks and gardens), road marking, road transport of people and equipment, various overheads covering a manager in charge of a building site or of a landscaping site (various costs), the cost of the work of an engineer on a worksite, including miscellaneous costs (engineering).

The indices covering the Provision of Plants (FV) and the Provision of grains (FG) are used to calculate the indices for the work of landscaping (parks and gardens). They can also be used directly in combination with other elements in the formulae used for price review.

The fascicle 35 of the “technical and general clauses of public works contracts covering landscaping, sports grounds and open air leisure facilities” (in French only) sets out the definitions and recommendations for use of these indices related to landscaping.

These “indices” consist of parametric formulae of the variations in the costs of various inputs, as recommended in the guide “Prices in public procurement” published by the legal affairs division of the Ministry for the Economy and Finance in April 2013 (version 1.1.). However, other more suitable parametric formulae can be used as well as the items “miscellaneous costs” and “transport” published in the “various indices of construction”.

Statistical field and list of the calculated indices

The list below gives the various indices in construction by code of activity in NAF 2008 and CPF 2008 so as to facilitate the choice of the right index thanks to the reading notes of the classification available on the INSEE web site:

List of various indices

French classification of activities / French classification of products (revision 2 of 2008) Various indices
01.19Other non permanent cropsFGProvision of grains
01.30Reproduction of plantsFVProvision of plants
42.11.20Construction work on motorways, roads, streets and other thoroughfares for vehicles and pedestrians and runwaysPMRRoad marking products
49.3Other overland transport of passengersTRRoad transport
71.1Architectural and engineering services and related technical consultancy servicesINGEngineering
81.3Landscape architecture servicesEV1Greening work
EV2Application of crop protection products
EV3Creation of parks and gardens
EV4Maintenance of parks and gardens
FDMiscellaneous costs

Technical characteristics

Methodology

The other indices are cost indices of the various activities in the construction and landscape architecture sectors listed under 6 items according to an approach towards analytical accounting: “cost of labour” now called “wages and charges”, “materials”, “equipment”, “energy”, “transport”, “miscellaneous costs”, similar to the “KLEMST” approach used by productivity economists (K = capital for “equipment”, L = labour for “labour”, E = energy for “energy”, M = materials for “materials”, S = services for “miscellaneous costs”, T = transport for “transport”).

The correspondence between the items of the indices and the accounts of the general accounting plan is as follows, given that subcontracting can be removed from production, that the item “miscellaneous costs” is capped and that only costs linked to a worksite are taken into account:

ItemsGeneral accounting of enterprises
KCapital605Purchase of equipment and works
606 \ 6061Non-stocked purchases (hand tools)
612 \ partialFinancial lease, to the exclusion of transport equipment
6131 \ partialRentals of equipment to the exclusion of transport equipment
615 \ partialMaintenance and repairs to the exclusion of transport equipment
68 \ partialAllocations to amortisation of capital assets to the exclusion of transport equipment
LLabour604Purchase of studies and services
621Personnel from outside of the firm
6311Taxes on wages
64Personnel charges
EEnergy60221 \ partialCombustibles to the exclusion of fuels
6061Non stockable supplies (water, energy, electricity)
MMaterials601Stored purchases
602 \ 60221Other supplies
609Reductions, rebates and discounts on purchases
SServices (miscellaneous costs)61Outside services minus 611 “general subcontracting”, minus 612 «financial lease”, minus 6131 “Rentals”, minus 615 “maintenance and repairs”, minus 6163 “transport insurance”
622Remuneration of intermediaries and fees
623Advertising, public relations
625Travel, assignments and receptions
626Postal and telecommunications costs
68 \ partialAllocation to amortisation of capital assets
TTransport60221 \ partialFuels
Share of 612Financial lease on transport equipment
Share of 6135Costs for rental of trucks without drivers
Share of 6155Maintenance and repair of transport equipment
6163Transport insurance
624Collective transport of goods and collective transport of personnel
68 \ partialAllocation to amortisation of transport equipment

Each item consists of basic indices, now all derived from public statistics.

The weighting of the items and basic indices is set for the duration of the base.

Aggregation and reference

The items are calculated according to a Lowe's aggregation-chaining technique. The index level of the item in the previous month is multiplied by the weighted mean of the variations in prices of the basic indices making up the item.

Although the structure and weighting of the other indices and index have been periodically revised, the periods of reference have remained unchanged.

Weighting

The current weightings are the result of work undertaken by the general commissariat for sustainable development of the Ministry of ecology, sustainable development and energy.

The Annual sectoral survey (ESA) on construction and services, enclosed with the fiscal data forwarded to INSEE, forms the basis of the weightings of the items and basic indices.

Weighting of other indices, item by item
IndexItems
Codes Titles Cost of labour Equipment Transport Energy Misc. costs Mate­rials Total
ING Engineering 70% 15.9% 14.1% 100%
FD Miscellaneous costs 5% 26% 27% 26% 16% 100%
TR Road transport 40% 40% 20% 100%
PMR Road Marking Products 20% 80% 100%
EV1 Greening work 40% 20% 5% 35% 100%
EV2 Application of crop protection products 40% 20% 5% 35% 100%
EV3 Work for the creation of parks and gardens 55% 18% 6% 21% 100%
EV4 Maintenance work of parks and gardens 75% 15% 10% 100%
FG Provision of grains 100% 100%
FV Provision of plants 100% 100%

Composition of the various indices

Parks and Gardens “EV”

These indices are monthly.

  • EV1: Greening work
    Materials consist of the “provision of grains”, equipment of “agricultural equipment (10 %) and vans” (10 %), and the source of energy is diesel fuel.
  • EV2: Application of crop protection products
    Materials consist of “agrochemical products for agriculture”, equipment of “motor vehicles” (10 %) and of “agricultural equipment” (10 %). The source of energy is diesel fuel.
  • EV3: Work for the creation of parks and gardens
    Materials consist of the “provision of plants” (18 %) and the “provision of grains” (3 %). Equipment consists of “agricultural equipment” (9 %) and “motor vehicles” (9 %). The source of energy is diesel fuel.
  • EV4: Maintenance work of parks and gardens
    Equipment consists of “agricultural equipment”. The source of energy is unleaded petrol with a 98 octane index.

Transport “TR”

The variation in road transport costs is tracked with the “TR” index.

This index was established by the general commissariat for sustainable development in concert with the representatives of professionals in the sector of Building and Public Works, on the basis of a parametric formula.

Equipment consists of “vans” (35 %) and tyres (5 %). The source of energy is diesel fuel.

Miscellaneous costs “FD”

This item was defined to provide a lump-sum representation of the miscellaneous management costs of a firm in the Building and Public Works sector.

Materials consist of “stationery”. Equipment consists of the “cost of construction” (21 %) and office equipment (5 %). Transport consists of transport services (14 %) and vehicles (13 %). The miscellaneous costs consist of communication costs (21 %) and catering costs (5 %).

Engineering “ING”

The Engineering index is calculated monthly.

Equipment consists of the “cost of construction” (3 %) and of the MIG EBIQ - Energy, intermediary goods and capital goods (12.9 %). The miscellaneous costs consist of the consumer price index of “Transport, communications and hotel and catering costs”.

Road Marking Products “PMR”

Metal containers account for 10 points in the “materials” item, which consists of a large number of basic indices.

Provision of grains “FG”

This index is calculated on the basis of information provided quarterly by the National Professional Group of Grains and Plants.

It represents the variations in the prices of a sample of grains, including English rye-grass, red fescue, smooth-stalked meadow-grass, timothy and reed fescue.

Provision of plants “FV”

This index is calculated annually.

It represents the variations in the prices of a sample of large trees, roadside trees, evergreen and deciduous shrubs and conifers.

Sources of information

The item “wages and charges” consists of the index of the hourly cost of labour in the corresponding sector, with a lag of 3 months.

The basic indices of the other items consist essentially of producer price indices, and in particular those for the Producer price indices of French industry for the French market (base 2010) - Purchaser's price for contract escalation).

All the other indices have been derived from public statistics.

Statistical unit surveyed

The other indices and index do not entail a new survey but use the existing public statistics and in particular the OPISE programme to create the basic indices.

Conceptually, the unit observed for its costs is a branch or sub-branch of activity of French construction firms.

Frequency of the operation

Monthly.

Dissemination

The various construction indices are distributed three months after the month reviewed on the BDM website under the theme “Prices and price indices” under the heading “Production and import price indices” and the sub-headings “Construction producer price and costs indices” and “Producer cost indices for construction (contract escalation)”.

They are also published in the Journal Officiel.

Background