Q4 Non-residential Building Construction Prices Up 0.6%

 

February 17, 2017 

The Non-residential Building Construction Price Index (NRBCPI) was up 0.6% in the fourth quarter compared with the previous quarter. This was the fifth consecutive quarterly increase and the largest gain since the second quarter of 2014.

Contractors reported quarterly increases in six of the seven census metropolitan areas (CMAs) surveyed. Vancouver (+1.1%) and Montréal (+0.9%) posted the largest advances, which mainly reflected higher material prices for contractors in the architectural and structural trades. The composite index for Edmonton was unchanged in the fourth quarter.

Year over year, the NRBCPI rose 1.6%, with Vancouver (+5.8%) and Toronto (+3.7%) reporting the largest increases. Edmonton (-2.6%) and Calgary (-1.9%) reported the only year-over-year declines.

How construction prices have evolved

As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of construction prices in Canada.

Information on wholesale building material prices dates back to 1871. Data collection to produce a non-residential material input price index started in 1926. Back then, prices were collected for materials used in projects such as shipbuilding, bridge building and woodworking plants, projects that differ greatly from construction projects today.

In 1970, Statistics Canada adopted model pricing to measure the price changes of construction projects. Using this approach, representative cost components for each building model are weighted according to their relative importance, and then priced through time. These components include the costs of materials, labour and equipment, and contractors’ overhead and profit.

The model approach was first applied to representative models of an office building and a high school, which were then priced in Montréal, Toronto, Ottawa and Vancouver. A light factory building was subsequently added, and the agency began to publish data for all three models as part of the NRBCPI in 1972.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/170214/dq170214a-eng.htm.

 

Related Articles


Latest Articles

  • Maximizing Excel: Practical Use Cases for Preconstruction

    Maximizing Excel: Practical Use Cases for Preconstruction

    November 8, 2024 By Melvin Newman Excel is a powerful and flexible tool that can enhance efficiency in electrical construction estimating.  Spreadsheets, like those in Excel, consist of a grid of “cells” where each cell can hold various types of data. Originating from mainframe computers in the 1960s and later developed for Apple computers in… Read More…

  • The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    November 4, 2024 The total value of building permits in Canada decreased by $858.1 million (-7.0%) to $11.5 billion in August, following a strong July during which construction intentions rose sharply (+20.8%). The residential and non-residential sectors contributed to the decrease in August. On a constant dollar basis (2017=100), the total value of building permits decreased 7.6% in… Read More…

  • A Slight Decrease in Residential Building Construction for August

    A Slight Decrease in Residential Building Construction for August

    November 4, 2024 Investment in building construction edged up 0.2% to $21.0 billion in August, after a 1.6% decrease in July. The residential sector edged down (-0.1%) to $14.6 billion, while the non-residential sector was up 1.0% to $6.4 billion. Year over year, investment in building construction grew 7.2% in August. On a constant dollar basis (2017=100), investment in building construction was… Read More…

  • When a Familiar Door Closes

    When a Familiar Door Closes

    November 4, 2024 By Keith Sones, seasoned utility industry executive Most of the articles I’ve written have been based on personal experiences, many of them occurring decades ago, which eventually translate into helpful life lessons. The years allow the events to marinate in a savoury stew of time and reflection, clarity never coming immediately, or even… Read More…


Changing Scene

  • Ontario Streamlining Pathways for Veterans into Skilled Trades

    Ontario Streamlining Pathways for Veterans into Skilled Trades

    November 8, 2024 The Ontario government is making it easier for Canadian Armed Forces (CAF) members, their spouses and veterans to start careers in the skilled trades. The province is also investing $2.4 million through the Skills Development Fund (SDF) to provide free training for CAF members and veterans in tech and cybersecurity careers. These initiatives… Read More…

  • Electric Avenue Partners with Rexel Atlantic to Expand EV Charging Solutions Across the Region

    Electric Avenue Partners with Rexel Atlantic to Expand EV Charging Solutions Across the Region

    November 8, 2024 Electric Avenue Manufacturing is pleased to announce a new distribution partnership with Rexel Atlantic. This strategic alliance will bring Electric Avenue’s advanced EV charging solutions to a broader audience, delivering convenience and quality to residential, commercial, and industrial sectors throughout the Atlantic region. Through this collaboration, Rexel Atlantic will offer Electric Avenue’s full… Read More…

  • BJ Take Rebrands as BJ Take Lighting

    November 8, 2024 BJ Take is an acronym chosen by the company’s founders, so they would not lose focus of why they were starting their company. The name stands for the Buma familt name and Ed and MaryAnn Buma’s five children. Now in its second-generation of family ownership, BJ Take has rebranded to BJ Take… Read More…

  • Government of Canada Invests $10.45M to Accelerate Residential Construction in Quebec

    Government of Canada Invests $10.45M to Accelerate Residential Construction in Quebec

    November 8, 2024 To better meet the evolving needs of all regions across the country, the Government of Canada yesterday launched the Regional Homebuilding Innovation Initiative (RHII). Delivered by Canada’s regional development agencies (RDAs), the RHII supports manufacturers in the residential construction sector in order to accelerate innovation in this industry and transform how homes will be built in the future. The federal government… Read More…