Cost update | Features

Price movements for waterproofing
	Unit £	London £	South-east £	East Anglia £
Plasterboard drylining
British Gypsum Dri Wall plasterboard 12.5 mm thick, full plaster skim coat, lining to walls 2.4-2.7 m high	m	27.50	23.25	21.25
External angle to same	m	1.25	1.05	1.00
Insulated plasterboard lining to walls; 40 Gyproc thermal board on dabs, plaster skim coat 2.4-2.7 m high	m	46.50	39.50	36.25
Gypliner wall lining system 38 Glasroc thermal liner, sealant, framing, cavity, board finish plaster, 2.4-2.7 m high in staircase areas	m	63.50	54.00	50.00
Dry wall angle bead	m	1.35	1.15	1.05
Rigid sheet flooring/lining
Plywood wall lining 18 m thick, Grade WBP	m²	15.60	13.40	12.30
Plywood flooring 18 m thick, Grade WBP	m²	14.20	12.10	11.20
Chipboard flooring 22 mm thick, screwed	m²	10.75	9.25	8.50
Plasterboard fixed partitions/ inner walls
Metal stud partition 100 mm thick, 12.5 mm wallboard each side, insulation, plaster skim coat, 3.0-3.3 m high	m	89.00	76.50	70.00
Metal stud partition 70 mm thick, 12.5 mm moisture-resistant board one side, plaster skim coat 2.4-2.7 m high	m	66.00	56.50	52.00
External angle to same	m	1.60	1.40	1.25
Suspended ceilings
British Gypsum M/F System with 12.5 mm wallboard, plaster skim finish	m²	19.50	17.50	16.00
Extra for access panel 600 × 600 mm	nr	120.00	105.00	98.00
Clip-in metal panel system concealed suspension, perforated polyester painted galvanised steel panels 600 × 600 mm	m²	33.00	29.00	27.00

Key indicators
Percentage change over months to December 1998	Six months	12 months
Retail price index
Headline rate	+0.6	+2.8
All items excluding mortgage interest payments – government’s target index	+0.8	+2.6
All items excluding mortgage interest payments and indirect taxes	+0.6	+2.0
Industry
Output prices of manufactured products	– 0.4	0.0
Output prices of manufactured products other than food, beverages, petroleum and tobacco industries	–0.4	–0.6
Construction industry
Construction materials	–0.6	+0.3
Housebuilding materials	–0.4	+0.5
Machinery and equipment	–0.1	+0.5
Electrical machinery and apparatus	–2.1	–2.3
Source: Office for National Statistics (December 1998 figures are provisional) 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.

Materials prices
Building, civil engineering and landscaping materials	(%)
Cement	+3
Ready-mixed concrete	+2
Reinforcement	–2
Bricks	+3 to 5
Clay handmade tiles	+2.5
Artificial slate	+5
Mineral-fibre insulation	+5
Expanded-polystyrene insulation	+5
Roof windows	+3
Chipboard/MDF/blockboard	+4.5
Adhesives	+1
Expanded metal products	+3
Precast kerbs	+2
Fencing	+1
Mechanical and electrical services and materials	(%)
Expansion joints	+4
Fans	+2.5
Insulation	+5
Clock systems	+1.5
Fire-detection and alarm systems	+3
Cabling trunking systems	+2

Building costs and tender prices
Packages whose indices have fallen
Work category	Index	Six-month change Jul-98 to Dec-98
3/08	Concrete: reinforcement	–1.8
3/12	Softwood carcassing and structural members	–1.6
3/13	Metal: decking	–3.8
3/14	Metal: miscellaneous	–4.0
3/15	Cladding and covering: glazed	–1.8
3/17	Cladding and covering: coated steel	–3.3
3/22	Cladding and covering: aluminium	–3.4
3/23	Cladding and covering: copper	–1.2
3/24	Cladding and covering: zinc	–4.6
3/26	Cladding and covering: built-up felt reefing	–1.4
3/32	Linings and partitions: self-finished	–1.6
3/34	Raised access floors	–2.3
3/54	Fencing	–3.1

Packages whose indices have risen
Work category	Index	Six-month change (%)
3/37	Windows and doors: steel	+2.3
3/45	Finishes: rigid tiles and terrazzo work	+1.5
3/49	Sanitary appliances	+1.5
3/55	Pipes and accessories: spun and cast iron	+1.5
3/57	Pipes and accessories: plastics	+2.9
3/58	Pipes and accessories: copper	+1.3
3/60	Pipes and accessories: clay and concrete	+1.4

Labour
Current electrician rates (£/hour)
	National standard rates	With London weighting
Technician	8.48	8.94
Approved electrician, instrument mechanic and instrument pipefitter	7.42	7.88
Electrician, instrument mechanic and instrument pipefitter	6.76	7.22
Labourer	5.24	5.70
Senior graded electrical trainee	6.08	6.54
Adult trainee	5.24	5.70
Adult trainee (under 21)	3.93	4.39

Wage agreement summary
Operatives	Agreement body	Wage rates effective since	Date of next review
Builders and civil engineering operatives	Construction Industry Joint Council	29 June 98	28 June 99 Increases of 7.6-10% already promulgated
	Building & Allied Trades Joint Industrial Council	18 June 98	June 99
Plumbers	The Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales	24 August 98	August 99
	Scottish and Northern Ireland Joint Industry Board for the Plumbing Industry	02 November 98	09 August 99
H&V operatives	Joint Conciliation Committee of the Heating, Ventilating and Domestic Engineering Industry	24 August 98	23 August 99 Increases of 7-7.2% already promulgated
Electricians	The Joint Industry Board for the Electrical Contracting Industry
	– main operatives	04January 99	January 00
	– apprentices	05 October 98	October 99
	Scottish Joint Industry Board for the Electrical Contracting Industry	04 January 99	January 00
The table summarises the wage agreements in force for the principal wage-fixing bodies in the construction industry.

Annual and hourly cost of 11-strong gang of electricians (£)
	Technician (1)	Approved electricians (4)	Electricians (6)	Subtotals
Hourly rate from 4 January 1999	8.48	7.42	6.76
Working hours a year	1732.50	6930	10395
Public holidays hours a year	60	240	360
× hourly rate = £/year	15 200.40	53 201.40	72 703.80	141 105.60
Incentive scheme @ 5%	760.02	2 660.07	3 635.19	7 055.28
Daily travelling time allowance (10-15 miles)	6.56	6.56	6.56
Days/year	231	924	1 386.00
£/year	1 515.36	6 061.44	9 092.16	16 668.96
Daily travel allowance (10-15 miles each way)	3.68	3.68	3.68
Days/year	231	924	1 386.00
£/year	850.08	3 400.32	5 100.48	9 350.88
JIB combined benefits scheme (no of weeks)	52	208	312
Benefit credit value	32.66	29.46	27.46
£/year	1 698.32	6 127.68	8 567.52	16 393.52
National Insurance contributions
Weekly gross pay (subject to NI) each	383.26	340.08	313.19
% contributions	10	10	10
£ contributions each	38.33	34.01	31.32
× no of electricians = £ contributions/week (46.2 weeks)	38.33	136.03	187.92
£ contributions/year	1 770.68	6 284.69	8 681.72	16 737.08
			Subtotal	207 311.32

Training (including any trade registrations), say 1%				2 073.11
Severance pay and sundry costs, say 1.5%				3 109.67
Employer’s liability and third-party insurance, say 2%				4 146.23
Annual cost of notional 11-strong gang (10.5 electricians actually working)				216 640.33
Annual cost per productive electrician (that is, divided by 10.5)				20 632.41
All-in hourly rate (based on working year of 1732.5 hours)				11.91
In calculating the above, it has been assumed that the working week of 37.5 hours is made up of 7.5 hours Monday to Friday and that no time is lost through sickness or similar reasons.