13 JAN 2020
BCIS has partnered with Hays Construction & Property to develop a series of construction labour cost indices.
The new index series provides an accurate, up-to-date and representative assessment of labour cost dynamics at all project stages by using a direct measurement of rates.
The indices display relative dynamics in much more detail than the Working Rule Agreement indices, with short-term changes and labour market volatility also more evident when viewing quarterly movements.
"Costing labour is an integral part of any construction project, yet data to inform this has not typically been as reliable as it is for other project elements such as materials. The new Hays-BCIS index will compare actual market rates and determine their true movement." emphasises RICS Solutions Architect Paul Burrows.
"Better visibility of short-term movements in rates will provide BCIS users with a much more realistic and accurate view of the market. It will clearly highlight changes in demand for different grades of workers too – particularly relevant in today's economic climate", Paul continued.
“Costing labour is an integral part of any construction project, yet data to inform this has not typically been as reliable as it is for other project elements such as materials. The new Hays-BCIS index will compare actual market rates and determine their true movement.”
Solutions Architect, RICS
Hays Construction Director Duncan Bullimore states below that the benefits of more effective labour-costing processes will also have a positive impact on the industry as a whole:
"Encouragingly, we know from our own experience and data that employers are adopting a forward-looking, adaptable and flexible approach to resourcing for projects amid ongoing skills shortages and uncertainty as an EU exit approaches."
"Providing credible data on traditional construction roles UK-wide will help employers with effective procurement by contributing to cost and margin control."
The six separate index series calculated by BCIS from labour categories identified by Hays are: