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Hot rates: Preliminaries
拢 per week% of total prelims
拢5m greenfield industrial building, Midlands, 26-week contract
Contract guarantee bond2002.2
Name board300.3
Management and staff500054.7
Site accommodation3503.8
Power, lighting and water4004.4
Rubbish disposal, cleaning, drying and protection6006.6
Additional services and facilities3003.3
Small plant and tools600.7
Mechanical plant3603.9
Temporary roads and hardstandings135014.8
Access scaffolding2002.2
Hoardings, fans, fencing1351.5
Additional temporary works1501.6
TOTAL9135100
Preliminaries as % of other works 5%
拢500,000 refurbishment, northern England, 30-week contract
Contract guarantee bond251.2
Name board150.7
Management and staff120057.1
Site accommodation904.3
Power, lighting and water452.1
Rubbish disposal, cleaning, drying out and protection1155.5
Additional services and facilities251.2
Small plant and tools251.2
Mechanical plant351.7
Temporary roads and hardstandings00
Access scaffolding50023.8
Hoardings, fans, fencing150.7
TOTAL2090100
Preliminaries as % of other works 15%
拢1m single-storey school, East Anglia, 45-week contract
Contract guarantee bond352.2
Name board100.6
Management and staff80049.8
Site accommodation754.7
Power, lighting and water704.4
Rubbish disposal, cleaning, drying out and protection905.6
Additional services and facilities1006.2
Small plant and tools251.6
Mechanical plant16010
Temporary roads and hardstandings402.5
Access scaffolding20012.5
Hoardings, fans, fencing00
Additional temporary works00
TOTAL1605100
Preliminaries as % of other works 8%
拢3.5m sports centre, London, 45-week contract
Contract guarantee bond1151.2
Name board150.2
Management and staff580058.6
Site accommodation3303.3
Power, lighting and water3503.5
Site security5705.8
Additional services and facilities2652.7
Small plant and tools700.7
Mechanical plant4404.4
Temporary roads and hardstandings2002.0
Access scaffolding150015.2
Hoardings, fans, fencing2352.4
TOTAL9890100
Preliminaries as % of other works 15%
Price changes
% change since spring 2001*
Hardcore +9%
Insitu concrete +10%
Steel reinforcement +3%
Common bricks +9%
Engineering bricks +5%
Concrete blocks +6%
Natural stone rubble +4%
Precast concrete lintels +8%
Structural steel -6%
Sawn softwood +5%
Clay roof coverings -2%
Concrete roof coverings +2%
Natural slate-roof coverings -2%
Plasterboards -2%
MDF/Chipboard linings +3%
Standard softwood doors and windows +5%
Glazing +10%
Paints +6%
Insulation +2%
Stone pavings +3%
* since the publication of Spon鈥檚 2002 Price Books
Materials prices
Key Indicators% change over last 12 mths (April 2001-April 2002)
Retail Prices Index
Headline rate (RPI) +1.5
All items, excluding mortgage interest payments (RPIX) 鈥 government鈥檚 target index+2.3
All items, excluding mortgage interest payments and indirect taxes (RPIY) +2.5
Harmonised Index of Consumer Prices (HICP)+1.3
Industry generally
Materials and fuels purchased bymanufacturing industry-3.6
of which materials -3.9
fuel-1.4
Materials and fuels purchased by manufacturing industry, excluding food, beverages, tobacco and petroleum-4.3
Output prices of manufactured products+0.2
Output prices of manufactured products excluding food, beverages, tobacco and petroleum +0.2
Construction industry
Construction materials+1.0
Housebuilding materials+0.9
Machinery and equipment (UK manufacture)+0.9
Electrical machinery and apparatus (UK manufacture) +0.6
Source: Office for National Statistics (March/April 2002 figures provisional)
Notes: The ONS category 鈥淢achinery and Equipment鈥 includes mechanical engineering items such as pumps, taps, valves, lifts, cooling and ventilation equipment. 鈥淓lectrical machinery and apparatus鈥 includes electrical engineering materials such as electricity distribution and control apparatus, wires and cables and lighting equipment.
Price adjustment formulae for construction contracts
% change July 2001-March 2002 % change July 2001-March 2002
Softwood carcassing and structural members +2.2 Metal: decking -6.1
Cladding and covering: sheet and tile +2.1 Cladding and covering: coated steel -4.2
Cladding and covering: lead +4.8 Cladding and covering: aluminium -3.0
Sanitary appliances +2.6 Cladding and covering: zinc -4.1
Pipes and accessories: spun and cast iron +4.9 Raised access floors -4.0
Pipes and accessories: steel +2.9 Finishes: rigid tiles and terrazzo work -7.3
Pipes and accessories: plastics +2.6 Insulation -2.4
Pipes and accessories: aluminium +3.3
Aside from the first three items, the remaining work categories registering price rises have a plumbing labour input. Plumbers in England and Wales received a substantial wage increase in September last year, creating a 5.7% increase in labour costs.
Almost all those shown in the table have a significant metal content. ONS statistics show that imported metal prices fell 14% between September 2000 and November 2001. Since the end of last year, metal prices have stabilised, even staging a minor recovery, though some are beginning to fall in price again.
Wage agreement summary
OperativesAgreement bodyWage rates effective sinceDetails inDate of next review
Builders and civil
engineering operatives
Construction Industry Joint Council25 June 2001Cost update 1 June 2001 Spon鈥檚 Architects鈥 and Builders鈥 Price Book 200224 June 2002 (third part of three-year agreement 鈥 see above)
黑洞社区 and Allied Trades Joint Industrial Council (BATJIC)11 June 2001Cost update 1 June 2001 Spon鈥檚 Architects鈥 and Builders鈥 Price Book 200210 June 2002 (see above)
PlumbersThe Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales3 September 2001Cost update 31 August 20012 December 2002 (second part of two-year agreement)
Scottish and Northern Ireland Joint Industry Board for the Plumbing Industry8 April 2002Cost update 8 March 2002 28 October 2002 (third part of four-part, two-year agreement)
Heating and ventilation operativesJoint Conciliation Committee of the Heating, Ventilating and Domestic Engineering Industry3 September 2001Cost update 31 August 2001 Spon鈥檚 Mechanical and Electrical Services Price Book 20027 October 2002 (third part of three-year agreement)
The Joint Industry Board for the Electrical Contracting Industry7 January 2002Cost update 9 Nov 20016 January 2003 (second part of three-year agreement)
ElectriciansScottish Joint Industry Board for the Electrical Contracting Industry7 January 2002Cost update 8 March 20026 January 2003 (second part of three-year agreement)