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

Save on Energy Ontario Industrial Focused Programs

Save on Energy Ontario Industrial Focused Programs

December 6, 2024 As part of the IESO’s reliability toolkit, industrial energy efficiency is a valuable resource that helps reduce demand. Save on Energy Ontario offers industrial-focused programs, as well as training and support, to help industries improve their energy efficiency and energy management practices to cut costs, increase competitiveness and improve grid reliability. “Ontario’s…

Ideal National Championship

An Ideal Invitation

With COVID interrupting our lives, IDEAL Electric was committed to continue with its IDEAL National initiative. The rationale was pretty straightforward – they wanted to continue to recognize electricians for their efforts and maintain the momentum they have created in recruiting the next generation of electricians.

Latest Articles

  • ESA has Identified Increasing Safety Concern Surrounding Meter Base Installations

    ESA has Identified Increasing Safety Concern Surrounding Meter Base Installations

    April 18, 2025 ESA and EFC are raising awareness on an increasing safety concern the ESA has identified surrounding meter base installations. ESA identified an increase of installed meter bases where the neutral block is isolated from the enclosure. According to OESC Rule 10-210 a bonding conductor must be installed between the meter base and… Read More…

  • Non-residential Construction Investment Continues to Reach Record Highs in January 2025

    Non-residential Construction Investment Continues to Reach Record Highs in January 2025

    April 18, 2025 Overall, investment in building construction rose 1.8% (+$393.7 million) to $22.1 billion in January. The residential sector increased 2.3% to $15.4 billion, while the non-residential sector was up 0.8% to $6.7 billion. Year over year, investment in building construction grew 5.7% in January. On a constant dollar basis (2017=100), investment in building construction increased 1.5% from the previous month to $13.2 billion… Read More…

  • BC Non-Residential Drives Growth, Multi-Family Component Drives Residential Decline in February Building Permits

    BC Non-Residential Drives Growth, Multi-Family Component Drives Residential Decline in February Building Permits

    April 18, 2025 In February, the total value of building permits issued in Canada increased by $371.3 million (+2.9%) to $13.1 billion. Gains in construction intentions were led by British Columbia’s non-residential sector. On a constant dollar basis (2017=100), the total value of building permits issued in February grew 3.2% from the previous month and was up 5.6% on… Read More…

  • Navigating Tariffs: Practical Strategies for ECABC Members

    Navigating Tariffs: Practical Strategies for ECABC Members

    April 18, 2025 Canadian businesses are facing uncertain and unprecedented risks created by tariffs on Canadian goods from the United States. The combination of the economic impact to BC’s economy from these tariffs, and the potential increase in the cost of construction materials and equipment as Canada is forced to respond with retaliatory tariffs, has… Read More…

Changing Scene

  • Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    April 18, 2025 As a next step in its plan to protect Ontario by unleashing the province’s economy, the Ontario government is introducing the Protect Ontario through Free Trade within Canada Act to unlock free trade and labour mobility within Canada. This legislation will, if passed, create new opportunities for job creation and investment attraction, supporting economic… Read More…

  • Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    April 18, 2025 Prince Edward Island and Ontario have joined the Nova Scotia by introducing reciprocal legislation that will help foster an environment of mutual recognition of goods, services and labour mobility between these provinces. “Leaders across the country are expressing interest in removing trade barriers, and I’m very pleased that P.E.I. and Ontario have… Read More…

  • New Brunswick Signs MOU with Ontario to Reduce Trade and Labour Mobility Barriers

    New Brunswick Signs MOU with Ontario to Reduce Trade and Labour Mobility Barriers

    April 18, 2025 The governments of New Brunswick and Ontario have signed a memorandum of understanding on free trade and labour mobility. “Ontario is New Brunswick’s second-biggest trading partner, and we are excited to be building on the positive momentum to reduce internal trade barriers across Canada,” said Premier Susan Holt. “Today’s signing of this… Read More…

  • EFC Welcomes New Manufacturer Member: MegaResistors Corp.

    EFC Welcomes New Manufacturer Member: MegaResistors Corp.

    April 18, 2025 Founded in 2008, MegaResistors is a proudly Canadian company specializing in the design and production of high-quality power resistors, including grounding resistors, braking resistors and resistive load banks, tailored for demanding industry and mission critical applications. Their extensive line of products helps them meet the needs of the industry, from crane control… Read More…