24 APR 2019
In no particular order, the top three popular indices are:
As the indices are accessed in different ways, establishing the usage is not straightforward. However, in some cases the numbers are staggering. For example, the HRCI is rarely accessed directly but in the last year it was used in calculating rebuilding cost assessments in the BCIS Rebuild online service nearly 500,000 times and in the Rebuild look-up service used by insurance aggregators over 25m times.
The HRCI is an adjusted Resource Cost Index (RCI) measuring the movement in the cost of rebuilding single dwellings (houses and flats) and is produced monthly. It is designed to be used in updating insurance rebuilding cost assessments and cover during the currency of an annual policy. It is an integral part of BCIS advice to the insurance industry and is used in calculations carried out by surveyors, loss adjusters, insurance companies and aggregators. The index is based on changes in the rebuilding costs for all house types included in the BCIS Rebuild online service, resulting from changes in the input costs of labour, materials, plant, profit, overheads and fees.
The TPI measures the trend of contractors' pricing levels in accepted tenders, i.e. cost to client, for schemes let on a lump sum basis. Its primary use is in adjusting known project costs, order of cost estimates and cost plans for date. It is calculated by analysing the pricing in accepted tenders for individual projects. The project indices are averaged (geometric mean) in each quarter. It is based primarily on traditional procurement routes – projects based on a contractor-led procurement method. However, the same general market conditions apply to all single-stage lump sum procurement routes, such as design and build.
Early estimates for the index are based on the results of the BCIS TPI panel survey. It is accessed via the BCIS online service and also used in the calculation of the BCIS average prices and updating analyses in the service.
The GBCI is an RCI measuring the movement in costs of labour, materials and plant, i.e. input cost to contractor. It is used to adjust costs for inflation in calculating estimates and in inflation clauses in contracts. The index is calculated using cost models produced by BCIS, which represent average buildings, and is based on factory gate prices for materials and plant and nationally agreed labour rates and other employment costs.
The GBCI includes all types of construction and all categories of work (i.e. it includes mechanical, electrical and lift installation work). It is accessed via the BCIS online service and used in adjusting costs in the BCIS Schedule of Rates and is accessed automatically from third-party systems.
Maintenance costs, as measured by the All-in Maintenance Cost Index, rose by 3.9% in the year to 4th quarter 2018.
The BCIS Online featured project for May 2019 is the recently completed conversion, reconfiguration and refurbishment of Port Talbot’s neo-Georgian style Grade II Listed former Magistrates’ Court building.