Building cost index: documentation of statistics

Data description (SIMS 3.1)

The building cost index describes relative changes in the building costs of building works and buildings of essentially identical structures by monitoring developments in the prices of the basic inputs used in their building.

Concepts and definitions (SIMS 3.4)

Building cost index

The building cost index is an index of input prices that describes development in the prices of factors of production, materials, wages and salaries and other inputs of building trade relative to the average price level of a base year.

Building trade

Building trade refers to commercial building against payment. Cf. Independent building.

Independent building

Independent building refers to building projects undertaken by households themselves, which include new and renovation building of single-family houses, free-time residences, agricultural buildings and other domestic utility buildings without paid labour. Cf. Building trade.

Input of supplies

Inputs of supplies describe development in the prices of supplies and material used in the construction industry relative to the price level of a base year. The prices are monitored with an inquiry conducted among producers, wholesalers and retailers of building supplies.

Labour input

Labour input describes development in the cost of labour in the construction industry relative to a base year. It is monitored against average hourly earnings for regular working hours in the construction industry, indirect labour costs complying with collective agreements, and estimated development of earnings.

Other inputs

Other inputs comprise data on the prices of services that are not directly associated with building construction. Some of them relate to building contracting and some to the overhead costs of building sites. Data on the costs of transport, machine works and lift installations are collected by monitoring subcontracting costs.

Transfer price coefficient

Transfer price coefficients are calculated from changes in the building cost index. They are used in calculating compensations paid in transferring shares in a tenement building of a joint-stock property company or housing company or the maximum price of a tenement building financed with a long-term renovation loan. The coefficient is calculated using the currently valid building cost index. Building cost indices of different years have their own product selections and weight structures. This ensures that the index measures correctly the structure of building costs prevalent at each point in time.

Institutional mandate (SIMS 6)

Quality assurance (SIMS 11.1)

Release calendar (SIMS 8.1)

User access (SIMS 8.3)

Confidentiality - policy (SIMS 7.1)