Producer cost indices for construction (contract escalation) - Civil engineering (TP) indices - Base 2010

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Criteria for selecting series

21 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 (21 items)


Producing organisation: INSEE

Warning

Past indices have been stopped, but, as for any rebasing, INSEE systematically proposes a “corresponding series” in front of each “stopped series”, with following rules:

  • Before rebasing, i.e. until September 2014 included, the “stopped series” is directly accessible and is authoritative;
  • After rebasing, i.e. since October 2014 included, stopped series can be extended this way: the “corresponding series” has to be multiplied by the connecting coefficient, then the obtained product rounded with one decimal.

Introduction

The civil engineering (TP) indices are production cost indices of different activities in the construction sector: division 42 – Constructions and construction works for civil engineering and the first branches of division 43 – Specialised construction works. These indices are mainly used for contract escalation. From 1975 to 2013, these indices were published and calculated by the Ministry of Ecology, Sustainable Development and Energy. In 2014, these tasks were transferred to INSEE, temporarily keeping the same general methodology, weightings and reference year. In the same way as for all short-term indicators produced by INSEE, a change of base - which updates all methodological aspects - takes place every 5 years. Thus, from January 2015 onwards, the civil engineering indices are published in base year 2010, with indices of October 2014 as first definitive indices available in base 2010 only. In order to use the new indices (in base 2010) in existing contracts that make reference to the old indices, which were stopped in September 2014, users can refer to the correspondance table which contains connecting coefficients for each index.

Goals

These indices allow businesses, local authorities and public organisations to escalate contracts.

Businesses and local authorities can use these official indices for construction work bids, by selecting the activity that is closest to the subject of their bid. These “indices” consist of parametric formulae representing changes in costs for different inputs, as recommended in the guide (pdf file) Le prix dans les marchés publics (“Prices in public procurement”) published by the legal department of the Ministry of Economy and Finances in April 2013 (version 1.1). However, other better adapted parametric formulae are also permissible, such as using the “miscellaneous costs” and “transport” headings published under “various indices in the construction industry”.

Legal basis

Decree N° 2014-114 of February 7, 2014 and the circular of May 16, 2014 relative to building indices (BT), civil engineering indices (TP) and various construction indices (pdf file) transferred the responsibility of these indices from the Ministry of Ecology, Sustainable Development and Energy to INSEE.

Scope and list of TP indices

Even though the TP indices were not originally coordinated with the NAF 2008, they are calculated by branches of the divisions 42 and 43, and their articulation with the official classification NAF 2008 can be summed up as follows:

NAF / CPF
2008, rev. 2
Civil Engineering Index
42.11ZTP08Roads development works and maintenance
TP09Making and implementation of mixes
42.13ATP02New civil engineering and structure works, or renovation
TP13Carpentry and metal art works
42.13BTP05aTraditional underground works
TP05bUnderground works in tunnel boring machines
42.21ZTP10aPipeworks, sanitation and water supply, with supply of pipes
TP10bPipeworks, with no supply of pipes
TP10cRehabilitation of non-visitable pipes
TP11Long-distance transport / transfer pipelines, pipes supplied
42.22ZTP12aEnergy and communication networking
42.91ZTP06aLarge-scale marine dredging
TP06bRiver dredging and small marine dredging
TP07bCivil works, concrete and steel for maritime works
TP14Underwater works by divers
42.99ZTP01All works General index
43.12ATP03bBlasting works
43.12BTP03aLarge-scale excavation works
43.13ZTP04Foundations and geotechnical works
43.21BTP12bPublic lighting - Installation works
TP12cPublic lighting - Maintenance works

Technical characteristics

Methodology

The civil engineering (TP) indices are costs indices, which are derived from 7 line-items in an analytical accounting process similar to the “KLEMST” approach used by economists in relation to productivity (where K = capital for “assets”, L = labour, E = energy, M = materials, S = services for “miscellaneous costs”, T = transport).

The articulation between the items in the indices and the lines in the general accounting plan are as follows, considering that the item “transport” has been given priority over all the other items, subcontracting has been removed from production, the heading “miscellaneous costs” has been capped, and only costs that can be linked to a specific construction site are assumed to be taken into account:

Item General financial accounting
K
 
Capital
605Purchase of capital assets, equipment and work
606 \ 6061Purchases not stored (small items)
612 \ partialLeasing excluding transport equipment
6131 \ partialEquipment hire excluding transport equipment
615 \ partialMaintenance and repairs excluding transport equipment
68 \ partialDepreciation and amortisation of fixed assets excluding transport equipment
L
 
Labour
604Purchases of services
621Temporary staff
6311Payroll tax
64Personnel expenses
E
 
Energy
60221 \ partialCombustibles excluding fuels
6061Non-stockable supplies (water, energy, electricity)
M
 
Materials
601Stored purchases
602 \ 60221Other supplies
609Rebates and allowances on purchases
S
 
Services
61External services minus 611 “general subcontracting”,
minus 612 “leasing”, minus 6131 “Equipment hire”,
minus 615 “maintenance and repairs”, minus 6163 “transport insurance”
622Remuneration of intermediaries and professional fees
623Advertising, public relations
625Travel and entertaining
626Postal and telecommunication charges
68 \ partialDepreciation and amortisation of fixed assets
T
 
Transport
60221 \ partialFuel
Part du 612Leasing transport equipment
Part du 6135Hire of trucks without drivers
Part du 6155Maintenance and repair of transport equipment
6163Transport insurance
624Transport of goods and employee transport
68 \ partialDepreciation and amortisation of transport equipment

The weighting of each item in each index is determined by the account analysis of the involved businesses (or the involved construction works). Similarly, each item is broken up into basic indices (of cost or price) derived from public statistics, with a weighting.

The weightings of the items and basic indices are normally fixed for the duration of the base. However, considering the adopted calculation formula, the modification of these parameters throughout the duration of the base would only affect the changes starting from a certain date.

Weightings

The following tables give the weightings by item for the different indices, and the weightings by index for the TP01 (the TP01 index is the weighted mean of all the other TP indexes ; the coefficients are in the left column of the table):

Weightings (in %)
Weightings of base 2010 TP indice by item
Weighting
for
TP01
TP Index Items
K
Capital
L
Labour
E
Energy
M
Materials
S
Services
T
Transport
D
Waste
10.0 TP02 New civil engineering and structure works, or renovation 15 55 1 27 1 1
19.0 TP03a Large-scale excavation works 27 33 8 22 2 5 3
0.2 TP03b Blasting works 23 27 7 40 3
4.0 TP04 Foundations and geotechnical works 16 44 5 27 2 3 3
1.5 TP05a Traditional underground works 17 39 2 33 5 1 3
1.5 TP05b Underground works in tunnel boring machines 27 33 3 25 6 1 5
0.9 TP06a Large-scale marine dredging 54 20 19 7
0.5 TP06b River dredging and small marine dredging 47 38 12 3
0.2 TP07b Civil works, concrete and steel for maritime works 13 20 3 57 5 2
12.5 TP08 Roads development works and maintenance 12 22 8 36 7 15
12.5 TP09 Making and implementation of mixes 11 14 9 50 1 15
16.0 TP10a Pipeworks, sanitation and water supply, with supply of pipes 22 37 3 29 2 5 2
2.0 TP10b Pipeworks, with no supply of pipes 25 43 4 16 2 5 5
1.4 TP10c Rehabilitation of non-visitable pipes 22 35 3 34 1 5
0.6 TP11 Long-distance transport / transfer pipelines, pipes supplied 11 21 3 58 2 3 2
12.0 TP12a Energy and communication networking 10 45 4 34 7
1.6 TP12b Public lighting - Installation works 8 24 3 57 8
2.4 TP12c Public lighting - Maintenance works 13 62 3 13 9
1.0 TP13 Carpentry and metal art works 11 47 3 35 1 3
0.2 TP14 Underwater works by divers 17 60 6 4 10 3

Additional Information:

Aggregation and reference

The TP indices base 2010 are Laspeyres-chained indices in reference year 2010.

The items are obtained by the aggregation of the elementary indices:


where p is the item, j the elementary index.

Then the indexes are obtained by the aggregation of the items:


where i is the TP index, p the item.

Finally, the TP01 index is obtained by the aggregation of the other indices:


where i is the TP01 index.

Sources of information

The item “wages and charges” is generally made up from the hourly labour cost index in the construction sector, produced by INSEE, with a lag of 3 months. The elementary indices for the other items are made up for the most part from producer price indices, and in particular the Producer price indices of French industry for the French market (base 2010) - Purchaser's price for contract escalation, produced by INSEE. All the other indices are derived from public statistics.

Statistical units

There is no specific survey for the TP indices ; they use existing public statistics, and especially the OPISE survey, to make up the elementary indices. Conceptually, the unit observed in relation to costs is a branch, or a sub-branch, of activity in French construction companies.

Frequency of the operation

Monthly.

Dissemination

The TP indices are disseminated around the 15th of the third month following the month under review (m+75), on the BDM, under the topic Prices and price indices, heading “Production and import price indices”, sub-heading “Construction producer price and costs indices” then “Producer cost indices for construction (contract escalation)”. They are also published in the Journal Officiel.

Rules for connection between the old and the new Civil engineering (TP) indices

Producer cost indices for construction of October 2014, which have been published on 15th of January 2015, have shifted at the same time to base 2010. Past Building indices (BT), Current Civil Engineering indices (TP) and various indices for construction have then been stopped, but, as for any rebasing, INSEE systematically proposes a “corresponding series” in front of each “stopped series”, with following rules:

  • Before rebasing, i.e. until September 2014 included, the “stopped series” is directly accessible and is authoritative;
  • After rebasing, i.e. since October 2014 included, stopped series can be extended this way: the “corresponding series” has to be multiplied by the connecting coefficient, then the obtained product rounded with one decimal.

As list of Building indices (BT), Civil Engineering indices (TP) and of various indices for construction has changed, several points are worthy of attention:

  • Some current TP indices have two or three “corresponding series” in base 2010. It is case of current TP02, TP03, TP06, TP10a and TP12 indices. Normally, nature of works involved allow to determine the good “corresponding series” to use for extension of the “stopped series” in the context of a given contract;
  • Some current TP indices “without supplies” have corresponding series “with supplies”. Such contracts are rare. It is not possible to suggest more adapted indexation formulas.

As Direction des Affaires Juridiques des ministères économiques et financiers, reminds it in a questions and answers (pdf file, in French only) dedicated to this rebasing of Producer cost indices for construction:

Il n'est pas nécessaire de rédiger un avenant pour prolonger une ancienne série par une série correspondante (nouvelle) et un coefficient de raccordement publiés par l'Insee quand la série correspondante est unique : l'information du comptable suffit. En revanche, quand plusieurs séries correspondantes sont proposées, le choix de la série correspondante doit faire l'objet d'un avenant, sauf si en raison de l'objet même du marché, l'index nouveau s'impose à l'évidence et dans la mesure où le libellé de l'index (notamment son numéro de référence BTxx ou TPxx) n'est pas substantiellement modifié. Si l'objet du marché justifie l'utilisation de plus d'un index dans la nouvelle série par rapport à la série ancienne, un avenant est également nécessaire.

Additional Information: