|
<br />.. .
<br />. .... . > "; ~- - . .~,.,
<br />. jn a~-index based~n a S~~ll't'~~ber of
<br />components, it \\"3S felt tha a large
<br />number of elements would in ease the
<br />time lag between verifying correct prices
<br />and. releasing the computed index.
<br />eFinally, an index m.lde up of fewer
<br />elements or components is more sensi-
<br />tive than one made up of many.
<br />A broad base. A number of users of
<br />indexes have iocon-eetl.... assumed that
<br />the ENR cost indexes a~e based' on ilie
<br />quantities, of materials used in construc-
<br />tion 'during 191~. In ~s' belief. they
<br />have asked if the original weighting
<br />should be adjusted to quantitiles of ma-
<br />terials now used. Actually, the base used
<br />was broader, taking into account the
<br />overall U.S_ economy.
<br />
<br />Building .cost components
<br />
<br />
<br />
<br />
<br />reedy hy me cost of machinery and
<br />equipment, the demand for armor plate
<br />and rails and bv the overall demand for
<br />imports. It is tll'erefore necessary to take
<br />into consideration the entire production
<br />of steel. The same holds uue in varying
<br />degress for lumber, cement and labor.
<br />Thexears 1913, 1916 and 19-19 were
<br />selecte for computing the average pro.
<br />duction figures. Total steel products for
<br />these years averaged 33 million tons,
<br />cement 17 million tons and lumber 42
<br />million board feet. The number-of com-
<br />mon industrial laborers reported by the
<br />1910' census was 4 million. These
<br />amounts were multiplied by 1913 prices
<br />and added to~ether, resulting in follow-
<br />ing relationshtps:
<br />
<br />surveyed by ENR. This subjective
<br />weighting yielded the following results
<br />in the original construction cost index
<br />published July 21. 1921:
<br />Common labor ................ 38%
<br />Structural steeL.............. 38%
<br />Lumber, 2x4s................... 1710
<br />Portland cement ................ 7%
<br />To establish the weighting for labor
<br />in the buiIding.cost index, ENR divided
<br />~e 1913 average .wage for a rewesenta-
<br />bve group of skilled workers mto -the
<br />labor component. of the consuuction-
<br />cost index for 1913. This yielded- the
<br />number of hours, 68.38, for weighting
<br />skilled labor to a building-cost index
<br />v,.ith a 1913 base.
<br />In 1921, when the mat(.rials were
<br />
<br />Building Cost IndelCHistory 1913-1985
<br />
<br />.- i: 1
<br />\:: ....... ,.-.
<br />
<br />"
<br />. '~:
<br />
<br /> , How ENR builds the Index: 200 hQurs ,01 common labor at the 20-cities average rate, plus25 cwt
<br /> How ENR builds the Index: 68.38 hours of skilled labor at the 2lJ.<:ities average of bricklayers'. ot standard structural steel shapes at the mill price, plus 22-56 cwt (1.128 IOhS) of PorUand .
<br /> carpenters' and structural ironworkers' rates. plus 25 cwt 01 standard structural steel shapes l:H cement at the 20-clties average price, plus 1,088 board feet of 2 x 4 lumber at the 20-cities aver-
<br /> the mill price, plus 22'.56 cwt (1.128 tons) ot Portland cement at the 2O-pjties average price, plus age price.
<br /> 1,088 feet of2)[ 4 lumber at the 20~cities average price.
<br /> 1906 95 1915 93 1924 215 - 1933 170 . 1942 276 1951 543 1960 824
<br /> 1913 100 1921 166. 1929 191 1937 196 1945 239 . 1953 431 1961 568 1907 101 1916 130 1925 207 1934 198 1943 290 1952 569 1961 847
<br /> 1914 92 1922 155 1930 185 1938 197- 1946 262 1954 446 . 1962 580 1908 97 1917 181 1926 208 1935 196 1944 299 1953 '600 1962 872.
<br /> 1915 95 1923 186 1931 168 1939 197 1947 313 1955 469 1963 594 1909 91 1918 189 1927 206 1936 206 1945 308 1954 628 1963 901
<br /> 1916 131 1924 186 1932 141 1940 203 1948 345 1956 491 1964 612 1910 96 1919 198 1928 207 1937 235 1946 346 1955 660 1964 936
<br /> 1917 167 1925 183 1933 148 1941 211 1949 352 1957 509 1965 627 1911 93 1920 251 1929 207 1938 236 1947 413 1956 692 1965 971
<br /> 1918 159 1926 185 1934 167 1942 222 1950 375 1958 525 1966 6SO 1912 91 1921 202 1930 203 ' 1939 236 1948 461 1957 724' 19661019
<br /> Skilled labor 1919 159 1927 186 1935 166 1943 229 1951401 1959 548 1967 672 1913 100 1922 174 1931 181 1940 242 .1949 477 1958 759 19671070
<br />; 56% 1920 207 1928 188 1986 -172 1944 235 1952 416 . 1960 559 1968 721 1914 89 1923 214 1932 157 ."._,,1941 258 1950 510 1959 797 19681155
<br />i
<br />. j 1913 = 100 Monthly : 1913=100 MonthlY'
<br />'-j . Annual'
<br /> A=
<br /> Jan. Feb. Mar. Apr. Mar June July Aug. Sept. Oct. ..NoY. .Dee. ..Ayerage Jan. Feb. Mar. APr.. May June ~,!:Ily Aug. Sept. Ocl. Nov. Dee. Ave<a
<br /> 1966 635 641 643 649 652 656 663 6S5 656 655 6S5 655 65. I 1965 968 997 998 1006 1014 1029 1031 1033 ;034 1032 1033,
<br /> 1034 1019
<br /> 1961 656 657 6S9 660 666 671 673' 678 681 684 685 667 rm 1961 1039 1041 1043 1044 1059 1068 1078 1089 .1092 1096 1097 1098 1070
<br /> 1966 692 695 698 701 710 716 721 729 741 747 747 7SS 721 1968 1107 1114 1117 1124 1142 1154 -1158 1171 1186 1190 1191 1201 1155
<br /> 1969 764 770 780 790 791 798 792 799 796 797 801 602 790 1969 1216 1229 1238 1249 1258 1270 1283 1292 -1285 1299 1305 1305 1269
<br /> 1970 802 601 602 813 827 634 848' 851 657 862 666 866 836 1970 1309 1311 1314 1329 1351 1375 1414 1418 1421 1434 1445 1445 1385
<br /> 1971 875 677 90S 913 983 946 959 970 996 997 1001 1005 ... 1971 1465 1467 1496 1513 1551 1589 16-18 1629 1654 1557 16_65 1672 1581
<br /> Structural steel 1972 1011 1016 1022 1027 1039 1047 1053 1057 1067 1070 1082 1090 1048 1972 1686 1691 1697 1707 1735 1761 1772 1777 1786 1794 180B 1816 1753
<br /> 26% 1973 1102 1114 1123 1135 1140 1138 1137 1144 1150 1156 1155 1158 1138 1973 1B38 18SO 1859 1874 1880 1896 1901 1902 1929 1933 1935 1939 '1a95
<br /> 1974 1156 1154 1155 1177 1177 1199 1233 1240 1238 1246 1239 1240 1204 1974 1940 1940 1940 1961 1961 1993 2040 2076 2089 2100 2094 2101 2D2O
<br /> 1975 1242 1255 1265 1269 1287 1307 1317 1330 1333 1351 1349 1354 1306 1975 2103 2128 2128 2135 2164 2205 2248 2274 2275 2293 2292 2297 2212
<br /> 1976 1362 1370 137-8 1391 1398 141.6 1425 1455 1467 1476 1479 1484 .'425 1976 2305 2314 2322 2327 2357 2410 2414 2445 2465 2478 2486 2490 2401
<br />
<br /> 10n 1489 1499 1504 lS06 1507 1521 1539 1554 1587 16_'8 1604 1607 1545 1977 2494 2505 25-13 2514 2515 2541 2579 2'611 2644 2675 2659 266. 2ST1
<br /> Lumber, 2 x 46 1978 1609 1617 1620 1621 1652 1663 1696 171JS 1720 1721 1732 1734 1674 1918 2672 2681 2693 2698 2733 2763 2821 2829 2851 2851 2861 2669 m6
<br /> 15% 1979 1740 1740 1750 1749 1763 1609 1829 1849 1900 1900 1901 1909 1819 1979 2872 2677 2886 2886 2889 2984 3052 3071 3120 3122 3131 3140 .3003
<br /> 198. 1897 1896 1918 1902 1891 1919 1953 1974 1976 1976 2000 2017 1943 1980 3132 3134 3159 3143 3139 3198 3260 3304 3319 3327 3357 3376 3237
<br /> Portland cement 1981 2015 2016 2014 2064 2076 2083 2109 2134 2154 2151 2181 2178 2098 1981 3372 3373 3384 3452 3473 '3510 3562 3616 3657 3660 3697 3695 3537
<br /> :,;3% 1982 2184 2198 2192 2197 2199 2225 2258 2259- 2263 2~62 2268 2297 2233 1982 3704 3728 3721 3732,3734 3815 3899_ 3899 3902 '3901 3918 3950 3825
<br /> 1983 2311 ~3.48 2352 2347 2351 2388 2414 2428 2430 2 16 2419 2406 23B4 1983 3960 4001 ,4006 400L4003 ',40~' 4108,,4132',:4142"lm A133,'4110 .:'4055 '
<br /> :-',>" ".1984 2402 2407 2412 2422 2419 2417 2418 2428 2430._~,4_2,1 }4.~.~, 24t8 ::.2418 1984 4109. 4113_,4118 '<<l-13,g.,4142,,4,16~"A166 4169,4176:;4161" 4158.4171 _ '..4148 .
<br /> --'o,,'y,;-:,' .,"" 198' 2420 2426 ~ ". ,~~<~,~ ~;;S".,. . . 1985':,,:4~~J~.f:fY'~;;~~:~~~4F~~~~~~~~~"~~~~~~%:', ,;':'t::,tt~,;':':*6
<br />100 ENR/~ 21, 1985
<br /> ^
<br />
<br />relanve escalanon fate. In the late l~flUS
<br />labor's share of the index decreased be--
<br />cause material prices were rising faster
<br />than wage rates. This trend began to
<br />reverse itself in 1981. In March, 1971,
<br />when Jabor rates were rising rapidly,
<br />cornman labor represented $76 out of
<br />every $100 in the construction-cost in.
<br />dex. The current construction-cost in-
<br />dex.is:
<br />Common labor ................ 74%
<br />Structural steeL.........:..... 15%
<br />Lumber,_ 2x4~"................... 9%
<br />Portland cement ______mmon. 2%
<br />In the building-cost index, skilled la-
<br />bor represented $61 out of every $100
<br />in March, 1971, and steel only $19. Re-
<br />flecting the relatively strong increases in
<br />
<br />Changes aUect the matenals component
<br />very little during the year of change.
<br />Dealing with produetjvity. Both. the
<br />construction and building-cost indexes
<br />measure the effects of wage.rate and
<br />materials.price trends. Thcv do not ad.
<br />j';lSt for productivity, managerial effi-
<br />aency, competitive conditions, contrac.
<br />tor overhead and profit, design changes
<br />or o~er intangibles.
<br />l~ tlme~ when productivity is low, the
<br />sellIng pnce of construction, represent.
<br />ed by the final costs of structures in
<br />place, will be relatively higher than the
<br />mdex. At the other extieme, when pro-
<br />ductivity is high and bidding competi-
<br />tio~ sharp, such as in a recession, the
<br />selhng pnce of finished construction will
<br />
<br />Construction Cost Index History 1906-1985
<br />
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