Construction Statistics Handbook Chapter 1

Chapter 1 Construction in General

1．Estimate of Construction Investment

Release Date: About beginning of fiscal year.
Publicizing Organization:

Estimation Method

1.Key points of the Statistics

1) Representative indicators for following trends in public and private sector investments are: housing investments, public investments, capital investments by private sector corporations, and so on (refer to Figure 1).
2) The estimates for construction investment in different regions provide indispensable information for conducting regional analyses on topics such as regional trends in construction investment by the national government.
3) With the use of these statistics, it is possible to make supplyand demand analyses and forecasts for construction materials and labor costs.

2.Points to be noted on the use of Statistics

In the amounts for construction investment, the costs for land,compensation, surveys, and machinery are not included. Figure 2 shows the relationship between public enterprise-related costs, government construction investments, and public capital investment formation<. 3.Definition of terms

1) Conceptual categories of public sector construction investment

Public sector Construction Investment	Building	Housing
		Non-Housing
	Civil Engineering	Public Infrastructure	Forestation,flood, coast cont'l
			Roads
			Harbors, fishing ports airports
			Life environment facilities(Parks, sewage, environment And hygiene)
			Hazard prevention
			Other public enterprises(Agricultural infrastructure, Logging roads and the like)
		Others

2) Conceptual categories of private sector construction investment

Private Sector Construction Investment	Building	Housing
	Building	Non-Housing
	Civil Engineering	Railroad [JR Group (ex.East Japan Railway Co.), private lines]
		Telecommunication (ex.NTT)
		Electric power (9 electric power companies,etc.)
		Private gas companies
		Private sector real estate and construction
		Private sector building works (Others)

*** Click on a figure, you can get the bigger one ***

Figure 1 Relationship between Gross Domestic Expenditure and construction investment 'FY 1997)
Note

The breakdown of Gross Domestic Expenditure (upper figure) was obtained from the Japanese government's economic outlook 'January 1998). The breakdown of construction investment (lower figure) is obtained from the Estimate of Construction Investment in FY 1998, The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) (June 1998). Due to this, the figures in the upper and lower figures somewhat differ.
The figures in the brackets are ratio to the Gross Domestic Expenditure.Public enterprise-related expenditure budget

Figure 2 Relations among public-related expenditure, Government construction investment, and public capital formation

*** Click on a figure, you can get the bigger one ***

2.Quick Estimate of Construction Investment

Release Date: about the 17th day of every month.
Publicizing Organization:

Estimation Method

The estimates are made using the following two statistics: Building Starts, and Current Survey on order Received for Construction. Using the data from these statistics, a conversion is made from the start basis to an amount basis per work. Then, the statistics are adjusted for missing items, and a correction to the investment amount is made from total work amount. The estimates are made from the amounts of construction work starts, the amounts of completed construction, and the amounts of uncompleted construction for different months. The estimates also take into account organizations in prefectures (Tokyo Metropolitan Area and Hokkaido, and prefectures) placing orders and the kinds of construction work.

1.Key Points of the Statistics

1) Through the statistics, it is possible for us to know the amounts of construction completed each month. At the same time, the amounts of starts and uncompleted construction work in construction as a whole are known. This combines construction and civil engineering work.
2) Using the amounts of starts, the amounts of completed work, and the amounts of uncompleted construction work, construction work is understood from various angles such as differences among regions, differences in organizations placing orders(investors), and the kinds of construction work.

2.Points to be noted on the use of statistics

1) Quick Estimate of Construction Investment is processed statistics. This means that the figures in the statistics are not in direct accord with the figures on Building Starts, and Current Survey on order Received for Construction. The amounts are adjusted for missing items and unit price adjustments, and there are expenses that are not included in the concepts for the various statistics, such as the expenses paid by the organizations placing the orders(investors).
1. Adjustments for missing items in the statistics
  In statistical surveys in general, all subjects cannot be surveyed exhaustively, and even in an "all-subjects survey," there tends to be some subjects that are not covered. Therefore, the sample survey is executed. Some surveys exclude companies capitalized at less than one million yen, and some surveys exclude buildings with less than 10 square meters of floor space.
  The above mentioned processing of samples is called adjustment for missing items in statistics, which is adjusting for subjects missing or excluded. With this type of adjustment, it is possible to calculate statistics that are closer to those that would be obtained with an all-subjects survey.
2. Unit price adjustments
  One of the items in the statistic on Building Starts is the planned amount of construction costs. The very nature of this statistic is that it is a projected amount, and it is not an actual construction cost calculated from the start of construction until completion. In general, this type of statistic tends to underestimate actual costs. In the statistic on Building Starts, the "Adjustment Survey" is conducted to estimate actual construction costs by obtaining the ratio of discrepancy between planned and actual construction costs. This is called the unit price adjustment ratio.
  When construction work on a building is conducted, the investor pays costs other than those paid to the contractor for the contracted construction costs. In the case of building construction, there is design fee paid to the construction design office. In the case of public-sector construction work, the costs incurred by the investor (the national government, the prefectural government, and the like) other than those paid to the contractor (construction company) include: office expenses, surveying costs, testing expenses, machinery and equipment costs, and so on. In general, the construction investment amount includes the construction cost paid to the construction company and the costs incurred by the investor.
2) MLIT publicizes the Estimate of Construction Investment separately as a construction investment amount. In order to use the Quick Estimate of Construction Investment in conjunction with the Estimate on Construction Investment with accountability, it is desirable to not use the figures from the Integrated Statistics on Construction Works since the statistics are processed figures, as has been stated above. It would be desirable to use the figures after converting them to ratios, such as the ratio of the investment amount in a prefecture to that invested in all of Japan, the composition of monthly investment amounts within a fiscal year, and the shares of those placing orders for different types of construction work.

3.Definition of terms
General Tables

1)Table of Work Categories

Category				Contents
Total
	1.Private sector			Total of construction work ordered by private sector organizations (other than public organizations).
		2.Buildings		Subtotal of building construction orderd by private sector organizations.
			3.Housing	Dwelling building, dwelling and industrial use combined buildings.
			4.Mining construction and manufacturing	Mining and manufacturing buildings.
			5.Commercial and service industry use	Commercial buildings and service industry buildings
			6.Others	Agricultural,forestry and fishery buildings, public enterprise buildings, official and educational buildings, and buildings that cannot be included in other categories.
		7.Civil engineering		Subtotal of civil engineering work ordered by private sector organizations.
	8.Public Sector			Total of construction work ordered by public organizations such as the national government, public corporations, public enterprises, postal service, forestry bureau, prefectural governments, local public corporations, Local Housing Supply Corporations, Land ImprovementDistrict and the like.
		9.Buildings		Subtotal of building work ordered by public organizations.
			10.Housing	Work on housing and facilities.
			11.Others	Work on non-housing and facilities.
		12.Civil Engineering		Subtotal of civil engineering work ordered by public organizations.
			13.General	Civil engineering work ordered by the National Government, prefectural governments, and local governments, excluding below.
			14.Corporations	Civil engineering work ordered by public corporations,public enterprises,Japan Post Group,forestry bureau,Electric Power Development Co., Ltd., and other local public corporations, excluding maintenance and repair work and machinery installation work.
15.(Repeated listing) Total Buildings
16.(Repeated listing) Total Civil Engineering

2) Table of Regions
(the same applies to tables of Public Organizations, Construction Types,and Private Sector Civil Engineering Works.)

Region	Name of Prefectural Governments
Hokkaido	Hokkaido
Tohoku	Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima
Kita-Kanto	Ibaraki, Tochigi, Gunma, Yamanashi, Nagano
Minami-Kanto	Saitama, Chiba, Tokyo, Kanagawa
Hokuriku	Niigata, Toyama, Ishikawa, Fukui
Chubu	Gifu, Shizuoka, Aichi, Mie
Kinki	Shiga, Kyoto, Osaka, Hyogo, Nara, Wakayama
Chugoku	Tottori, Shimane, Okayama, Hiroshima, Yamaguchi
Shikoku	Tokushima, Kagawa, Ehime, Kochi
Kyushu	Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima, Okinawa

Public Organizations General Tables

3)Type of Investors

Investors	Contents
1.National Government	Organizations such MLIT, Ministry of Agriculture, Forestry and Fisheries, Okinawa Integrated Secretariat, and so on.
2.Independent administrative organization, Public Corporations	Independent administrative organization such as Japan Railway Construction, Transport Technology Agency, Japan Water Agency, Urban Renaissance Agency. Public corporations such as Japan Post Group, Forestry Bureau, national university corporation, East Nippon Expressway Co. Ltd, and so on.
3.Prefectural Government	Departments and bureaus of prefectural governments (excluding those in charge of public corporations).
4.Local Governments	Departments and bureaus of local governments (excluding those in charge of public corporations).
5.Local Public Corporations	Departments and bureaus in charge of public, prefectural governments, and local governments (city water, transportation, gas, etc.).
6.Others	Cooperatives and development corporations of local public organizations, local public housing supply corporations, local highway corporation, land improvement districts, forestry cooperatives, and so on.

4) Type of Construction

Construction Types		Contents
1.Total of Civil Engineering		Total of civil engineering work in 2 - 15 below.
	2.Erosion and Flood Control	River control work, multipurpose dam construction, erosion flood control dam construction, forestation, seashore protection and anti-erosion work.
	3.Agriculture, Forestry, and Fishery	Construction work on agricultural roads, land, grass land, and facilities, work related to cultivation and reclaiming land, construction of logging road, and construction related to fishing port, fishery, and fish cultivation facility.
	4.Roads	Road construction.
	5.Ports and Airports	Construction of harbors, ports, and airports.
	6.Sewerage	Sewage-related construction.
	7.Parks	Construction of parks and athletic fields and facilities.
	8.Recovery from Disasters	Construction work relating to recovery from disasters.
	9.Land Development	Construction related to land development.
	10.Railways and Tracks	Construction of railroads, tracks, automobile traffic facilities.
	11.Electric Power and Gas	Construction of facilities for electric power and gas.
	12.City and Industrial Water	Construction related to water facilities for city and industrial water.
	13. Disposal of Waste	Construction of facilities for disposal of waste.
	14.Maintenance and Repair	Maintenance and repair work.
	15.Others	Outdoor electrical and civil engineering work related to buildings. (including postal work and machine installation.)
16.Total of Building		Total of building in 17 and 18.
	17.Housing	Construction of housing buildings and housing facilities.
	18.Others	Construction of non-housing and related facilities.

Building Construction Table

5) Investor Types

Investors Contents

1.Private Sector Companies, other corporations,, individuals

2.Public Sector National Government, prefectural governments, and local governments

6) Types of Dwellings and Industries

Use Type	Contents
1.Housing	Dwelling buildings, dwelling and industrial use combined buildings
2.Mining and quarrying of stone and grave,Comstruction,Manufacturing
3.Transport and postal activities
4.Wholesale and retail trade
5.Real estate
6.Accommodations,eating and drinking services
7.Medical, Health care and welfare
8.Education, learning support
9.Miscellaneous business service
10.Others	Agricultural, forestry and fishry buildings, public enterprise buildings, official and educational buildings, buildings that cannot be included other categories

7) Use Type

Usage	Contents
1.Housing	Dwelling, dwelling and industrial use combined buildings
2.Office	Office
3.Store	Store
4.Factory and Work Room	Factory and work room
5.Warehouse	Warehouse
6.School	School building
7.Hospital	Hospital and clinic
8.Others	Others

8) Structure Type

Structure Type	Contents
1.Wooden	Wooden structure(W)
2.Steel-frame Reinforced Concrete	Steel-frame reinforced concrete structure (SRC)
3.Reinforced Concrete	Reinforced concrete structure (RC)
4.Steel frame	Steel frame structure(S)
5.Other	Concrete block structure, others (CB, others)

Tables of Private Sector Civil Engineering Works

9) Types of Investors

Investors

1.Agriculture, Forestry,and Fishery

2.Mining and quarrying of stone and grave, Construction

3.Mining and Manufacturing

4.Electric Power, Gas, District heating, City water

5.Transportation and Telecommunications

6.Information and Communications

7. Wholesale and retail trade

8.Finance and Insurance

9.Real Estate

10.Service

11.Others

10) Types of Construction

Construction Type	Contents
1.Dams and Water Electric Generation	Construction of dams for water electric generation.
2.Railway	Railway construction.
3.Land Development	Land development and landfill work.
4.Wharf, port and harbor	Construction of wharf, port, and harbor.
5.Road	Road construction.
6.Electric Power Transmission/Distribution Lines	Construction of transmission/distribution lines for electric power.
7.Pipeline Construction	Construction of pipelines and hot-water pipes.
8.Golf Link Construction	Constructor of golf links.
9.Premise Environment Development/Improvement Work	Factory, store, and office premise environment development/improvement work on such things as gate, wall, protection wall, side gutter, hedges, and coating, excluding above 1 -8.
10.Others	Civil engineering work excluding above 1-9 such as oil tank, gas tank, shipbuilding dock, tower, swimming pool, play ground, athletic field, pavement for parking lots, and other civil engineering work facilities.

3.Statistics on Construction Undertaken

Release Date: The last business day of March.
Period coverd:

Annual, Previous fiscal year(April of the year before last - March of the last year) Publicizing Organization:

Estimation Method

Survey subjects

All companies with licenses with capital or paid-in capital of 30 million yen
All companies with licenses in paving and dredging, sheet-metal, and well drilling work.
Those companies with licenses other than the above that are stratified by capital size and business types. The samples are selected using the selection ratio for each stratum. (1/3 - 1/106)

Survey Period

1.Key points of the Statistics

1)The statistics will provide structural data for construction businesses.
2)The statistics provide structural data for the amounts of construction activities.
3)The coverage of the detailed items makes more detailed analyses are possible.
1. Types of licences from Minister of MLIT or prefectural governor and private companies or juridical enterprises.
2. Capital or paid-in capital
3. Amount of tangible assets
4. Types of construction work in different areas (32 work areas from a set of general civil engineering to sanitation system)
5. Number of workers (Permanent workers from directors to field workers, temporary and day workers, employees in non construction areas)
6. Amount of completed construction work in the past year (Main contractor work (private sector, public sector) and subcontractor work)
7. Amount of sales in other businesses
8. Amount of orders received in a year (Main contractor work (private sector, public sector) and subcontractor work)
9. Value added amounts (Labor costs, personnel costs, taxes, operating profits, depreciation costs)
10. Completed construction amount (as the main contractors) in different prefectures

2.Points to be noted on the use of Statistics

1) The coverage of the Statistics
2)Relations with the other construction statistics

1. Samples (construction companies with licenses) :		Approx. 500,000 companies

2. Statistics on Construction Undertaken (survey conducted every year) Sampling method ALL construction companies with licenses from the Minister of MLIT Construction companies with licenses form the prefectural governor are sampled as follows; All companies with licenses with capital or paid-in capital of 30 million yen or more All companies in paving, dredging, sheet-metal, and welling work companies with licenses. Those companies with licenses other than the above that are stratified by capital size and business type. Samples are selected using the selection ratio for each stratum. (1/3 - 1/106)	Sample extraction: ->	About 111,000 companies

3. Survey of Housing Land Complete Areas (Conducted every year) Sampling method Among those companies subject to the Statistics of Construction Undertaken, all companies with licenses in three construction businesses types (general civil engineering;general building; and scaffolding,earthwork and concrete)are the subjects.	Sample extraction: ->	About 80,000 companies
4. Current Survey of Orders Received for Construction (Every month) Sampling method Among those companies subject to the Statistics of Construction Undertaken, companies are extracted according to the completed amount of contractor construction and the completed amount of main contractor on public construction in the preceding fiscal year. Companies with amounts less than 100 million yen: not extracted. Companies with amounts more than 5000 million yen: all extracted. Those companies other than the above that are classified according to the completed amounts size layers and the completed amounts size layers of main contractor on public construction. Samples are selected using the selection ratio for each layers. (1/2 - 1/10) .	Sample extraction: ->	About 12,000 companies

According to the extraction rates, the recovery is conducted on the sample.
As for those companies who did not return the questionnaire, they are treated as those with no business results.

3.Definition of terms

1) Main contractor construction
This is construction work contracted directly from the investor.
2) Subcontractor construction
This is construction work contracted as a subcontractor from other construction companies.
3) Construction ordered by public sector organizations
This is construction work ordered by the National Government, local governments, and public organizations, public finance companies, corporations, and the like. Construction work ordered by Nippon Telegraph and Telephone Corporation, JR Group (ex. East Japan Railway Co.) is treated as private sector construction work.
4) Construction ordered by private sector organizations

This is construction work other than that ordered by public sector organizations.

5) New construction
This is a construction work for building new structures or adding or renovating structures. This includes improvement and recovery work and removal and disassembly work after natural disasters. As for work that contains both new construction andmaintenance and repair work, the work is categorized into the type of work that contains the major portion.
6) Maintenance and repair work
This type of work is work other than new construction which include maintenance work, periodically conducted for maintaining previous functions of existing buildings, repair, improvement, transfer and recovery work from natural disasters.
7) Civil engineering construction
In addition to so-called civil engineering construction (road construction, river construction, and so on), agricultural civil engineering construction (agricultural road construction, land improvement work, and so on), civil engineering construction includes work on electric power transmission lines, sewage, oil tanks, and the like.
8) Building construction
Building construction work includes leveling work and constructing the gates and walls that go along with the construction.
9) Construction facility work
Construction facility work includes work on such facilities as air-conditioning, ventilation, water supplies and drainage, electric power, gas, fire extinguishers, and work on chimneys and the like.
10) Machinery installation work
Machinery installation work includes work on such facilities as motor, piping, machinery and equipment, and work on such facilities as transformer facilities, indoor telecommunication facilities, and play facilities in parks and the like.
11) Amount of orders received
The amount of orders received is the contract amount received by the main and subcontractors for orders received.
12) Amount of orders by a consortium
For the amount of orders received for construction work by a consortium, the total of the orders received is in accordance with the amounts received by the corporations in the consortium.