Q3 Non-residential Building Construction Price Index Rises 0.4%
November 14, 2016
The composite price index for non-residential building construction rose 0.4% in the third quarter compared with the previous quarter. The increase was the result of higher material prices reported by contractors in the structural and architectural trades in Vancouver.
Contractors in four of the seven census metropolitan areas surveyed reported quarterly increases. Vancouver (+1.5%) posted the largest gain. Building construction costs were unchanged in Halifax, Montreal and Ottawa–Gatineau (Ontario part).
Year over year, the composite price index for non-residential building construction rose 1.3%. The largest year-over-year increases were recorded in Vancouver (+4.7%) and Toronto (+3.2%). Edmonton (-2.6%) and Calgary (-2.5%) posted the only declines compared with the third quarter of 2015.
The Non-residential Building Construction Price Index is a quarterly series that measures changes in contractors’ selling prices of new non-residential building construction in seven census metropolitan areas: Halifax, Montreal, Ottawa–Gatineau (Ontario part), Toronto, Calgary, Edmonton and Vancouver. Three classes of structures are covered: commercial, industrial and institutional.
Selling prices include costs of materials, labour, equipment, provincial sales taxes where applicable, and contractors’ overhead and profit. The cost of land, land assembly, design and development as well as real estate fees are excluded. Value added taxes such as the Federal Goods and Services Tax and the Harmonized Sales Tax are excluded.
Source: Statistics Canada http://www.statcan.gc.ca/daily-quotidien/151110/dq151110c-eng.htm.
