Chapter 5 Construction Prices

---

Construction Cost Deflator

Release Date: Around 17th of every month

Publicizing Organization:
   Research and Information Division, Economic Affairs Bureau
   Ministry of Land, Infrastructure, Transport and Tourism (MLIT)

Estimate Method Construction type Indices Construction type Indices are cost indices compared with bench mark year, by different construction types. These are made by the Laspeyres formula from material cost index and weight in the construction cost. The weight in construction cost is made based on Imput-Output table on the benchmark year. It = W1IM + W2IE  It = Construction deflator  IM = Material cost index deflator  IE = Labor price index  W1, 2 = The weights in the construction cost  Integrated Indices Integrated Indices are Implicit deflators, and made from construction type indices and the nominal construction cost of each year.

1.Key points of the Statistics

• 1) It is possible to grasp trends of construction cost by different types.
• 2) The construction cost deflator has been made since FY 1960. The construction type was subdivided in 1970 and 1985.

2.Points to be noted on the use of the Index

• 1) The indices are made by using the weight at the benchmark year, therefore the quality and productivity improvement are not reflected.
• 2) The construction deflator is useful for planning and budget-making, however it is unsuitable to grasp cost of a concrete work accurately.

---

Table of Construction Cost Deflators for Different Types of Construction Work

Integrated Construction	Integrated Building Construction	Integrated Housing	W Housing*
			Integrated Non-W Housing	SRC Housing*
				RC Housing*
				S Housing*
				CB Housing*
		Integrated Non-Housing	W Non-Housing*
			Integrated Non-W Non- Housing	SRC Non-Housing*
				RC Non-Housing*
				S Non-Housing*
				CB Non-Housing*
	Integrated Civil Eng.	Public Works	Civil Eng.‡T (including disaster recovery)	Integrated Flood Control	River Improvement*
					Comprehensive river development*
					Erosion Control*
					Japan Water Agency*
				Coast*
				Integrated Road	Public Road	Road I	Road improvement*
							Road pavement*
							Road bridge*
							Road repair*
						Street I	Street improvement*
							Street pavement*
							Street bridge*
							Urban development*
					Toll Road	Japan Highway Public Corp.*
						Metro. Expressway Public Corp.*
						Hanshin Expressway Public Corp.*
						Honshu-Shikoku Bridge Authority.*
						Local Public Corporations, etc. *
				Park*
				Sewage*
				Disaster recovery*
			Civil Eng.‡T(excluding disaster recovery)
			Civil Eng.‡U	Ports, fishing ports	Ports*
					fishing ports*
				Airports*
				Environment and hygiene*
				Agriculture and Forestry related public works*
		Other Civil Eng.	Railway tracks*
			Electric power*
			Telecommunications*
			City and industrial water*
			Land development*
			Other Civil Engineering works*

  

* Construction type Index

Note  W: Wooden  SRC: Steel -Frame Reinforced Concrete  RC: Reinforced Concrete  S: Steel-Frame  CB: Concrete Block

Road ‡U: Integrated index of road‡T and Japan Highway Public Corp.
Street‡U: Integrated index of Street‡T, Metro. Expressway Public Corp., and Hanshin Expressway Public Corp..