Cost update: March 2002 | Features

Hot rates: Common work items
Item	Unit	Keen (£)	Typical (£)
Groundwork
Excavate trench not exceeding 2 m deep	m3	7.25	8.50
Excavate pit not exceeding 2 m deep	m3	7.00	8.00
Remove excavated material from site	m3	13.80	15.70
Granular filling DOT type 2 not exceeding 250 mm thick	m3	20.50	23.80
Insitu concrete/precast concrete
Plain concrete (GEN 3) in foundations	m3	75.00	77.00
Reinforced concrete (C20 – 20 mm agg) in beds not exceeding 150 mm thick	m3	77.50	80.50
High yield bar reinforcement, 16 mm diameter	t	540.00	560.00
Masonry
Half brick thick wall in common bricks	m2	35.00	36.50
Medium density precast concrete blocks, 100 mm	m2	18.00	19.00
Medium density precast concrete blocks, 140 mm	m2	25.00	26.00
Structural/carcassing
Fabricated universal beams (40-100 kg/m) (excluding erection)	t	550.00	700.00
Fabricated universal columns (40-100 kg/m) (excluding erection)	t	630.00	735.00
Bolted fittings	t	600.00	1030.00
Permanent erection on site	t	135.00	160.00
50 × 100 treated sawn softwood floor members	m	2.50	2.80
Surface finishes
13 mm Thistle Hardwall and Multi-finish plaster	m2	8.00	9.00
One mist and two coats of emulsion to plaster walls	m2	2.50	2.65
Disposal systems
Vitrified clay drainage pipes, 100 mm diameter	m	5.25	5.50
Vitrified clay drainage pipes, 150 mm diameter	m	9.00	9.75

Building costs: Price changes
	Price movement % since spring 2001
Reinforcement	+6
Concrete blocks	+2
Cavity wall insulation	+5
Structural steelwork	+2
Clay roof tiles	+6
Tanking and damp proofing	-2
Joinery items	+4
Plasterboards	+3
Paints	+3.5
Steel shelving	+7
Brick paviors	+4
Aluminium pipes and fittings	+3
Cast iron pipes and fittings	+4
Copper tubes and fittings	-6
Electrical wires and cables	-2

Building costs: Materials prices
Key indicators	% change since May 2001 (05/01 to 01/02)	% change over last 12 months (01/01 to 01/02)
Retail prices index
Headline rate	-0.5	+1.3
All items excluding mortgage interest payments – government’s target index	+0.2	+2.6
All items excluding mortgage interest payments and indirect taxes	+1.3	+3.0
Industry generally
Materials and fuels purchased by manufacturing industry	-7.6	-6.3
of which	materials	-9.6
	fuel	+8.8
Materials and fuels purchased by manufacturing industry, excluding food, beverages, tobacco and petroleum industries	-2.4	-4.1
Output prices of manufactured products	-0.9	-0.5
Output prices of manufactured products, excluding food, beverages, tobacco and petroleum	-0.1	+0.1
Construction industry
Construction materials	-0.3	+0.7
Housebuilding materials	-0.2	+1.0
Machinery and equipment (UK manufacture)	+0.3	+1.1
Electrical machinery and apparatus (UK manufacture)	+0.2	+0.8
source: Office for National Statistics (Jan 2002 figures provisional)
Notes: The ONS category of “machinery and equipment” includes mechanical engineering items such as pumps, taps, valves, lifts, cooling and ventilation equipment. “Electrical machinery and apparatus” includes electrical engineering materials such as electricity distribution and control apparatus, wires and cables and lighting equipment.

New hourly rates of pay for electricians and plumbers
Electricians
Rates for the principal grades, effective from 7 January 2002 to 5 January 2003, are as follows:
	Shop rate £/hour	Travel rate £/hour
Technician	9.87	11.06
Approved electrician	8.63	9.82
Electrician	7.87	9.05
Labourer	6.09	7.27
Plumbers: Scotland and Northern Ireland
Rates of wages for plumbers and gas service operatives in Scotland and Northern Ireland will rise 7% from 8 April 2002:
	Rate per hour (£)
Technician plumber and gas service technician	9.37
Advanced plumber and gas service engineer	8.40
Plumber and gas service fitter	7.51
Plumbing labourer	6.62
Wage rates will rise by a further 7% on 28 October 2002 as the third part (of four) of a two-year deal, raising rates by 29% over 24 months.

Wage agreement summary
The following table summarises the wage agreements currently in force for the principal wage fixing bodies within the construction industry
Operatives	Agreement body	Wage rates effective since	Details in	Date of next review
Builders and civil engineering operatives	Construction Industry Joint Council	25 June 2001	Cost update 1 June 2001 Spon’s Architects’ and Builders’ Price Book 2002	24-Jun-02 (third part of three-year agreement)
	Building & Allied Trades Joint Industrial Council	11 June 2001	Cost update 1 June 2001 Spon’s Architects’ and Builders’ Price Book 2002	10 June 2002
Plumbers	The Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales	3 September 2001	Cost update 31 August 2001	2 December 2002 (second part of two-year agreement)
	Scottish and Northern Ireland Joint Industry Board for the Plumbing Industry	3 September 2001	Cost update 31 August 2001	8 April 2002 (second part of two-year agreement) See below
Heating and ventilation operatives	Joint Conciliation Committee of the Heating, Ventilating and Domestic Engineering Industry	3 September 2001	Cost update 31 August 2001 Spon’s Mechanical and Electrical Services Price Book 2002	7 October 2002 (third part of three-year agreement)
Electricians	The Joint Industry Board for the Electrical Contracting Industry	7 January 2002	Cost update 9 November 2001	6 January 2003 (second part of three-year agreement)
	Scottish Joint Industry Board for the Electrical Contracting Industry	7 January 2002	See above	06-Jan-03 (2nd part of 3 year agreement)

Regional variations
	% variation from outer London	Forecast first quarter 2002 tender price index	Adjustment to Spon’s major works section
Outer London	0	393 %	+1
Inner London	+9	428	+10
East Anglia	-12	346	-11
East Midlands	-16	330	-15
Northern	-19	318	-18
Northern Ireland	-39	240	-38
North-west	-15	334	-14
Scotland	-18	322	-17
South-east	-5	373	-4
South-west	-12	346	-11
Wales	-21	310	-20
West Midlands	-16	330	-15
Yorkshire	-22	307	-21
% Midpoint of forecast range from the Tender price forecast, published 25 January 2002
The figures represent broad averages for the regions. Differences will occur within regions and further adjustments will be needed for city centre or isolated locations.