How the indices are calculated
Mechanical cost indexThe MCI is based on labour rates agreed by the mechanical industry’s wage body, the JCCHVDEI, and materials prices from the Office for National Statistics. Electrical cost index
The ECI is compiled from materials data from the Office for National Statistics and labour costs agreed by the electrical industry’s wage body, the JIBECI. Building cost index
The BCI measures movement in contractors’ labour and materials costs. It is compiled from nationally agreed labour rates and materials prices from the Office for National Statistics. Tender price index
Davis Langdon & Everest’s TPI is compiled by analysis of successful building tenders worth more than £250 000. It includes movement in wage rates, discounts, plant costs, overheads and profits.
Current trends Up: Tender prices rose 3% in the fourth quarter of 2000
Up: Prices in London increased 9% last year, and have risen almost 30% in the three years from 1998
Up: DETR figures show that, since spring 2000, new orders have been just below the record levels of 1998
Up: Contractors report that workload rose in the third quarter of last year, after a dip in the second quarter
Same: The Construction Confederation reports that labour shortages are hitting more firms than at any time since the late 1980s Forecasts Same: Construction Forecasting and Research has downgraded its output growth forecasts to 2.5% for 2001 and 2002. This amounts to £1.7bn extra work a year
Up: Labour shortages and rising materials prices will help push up tender prices 5-7% over the next year
Down: The value of private and public housing output is set to fall this year
