ABSTRACT
INTRODUCTION It is important to distinguish between costs and tender prices; Civil Engineering costs are the costs incurred by a Contractor in the course of his business; Civil Engineering tender prices are the prices for which a Contractor undertakes work. Tender prices will be based on Contractor's costs but will also take into account market considerations such as the availability of labour and materials and the prevailing workload for Civil Engineering Contractors. This can mean that in a period when work is scarce tender prices may fall as costs are rising while when there is plenty of work prices will tend to increase at a faster rate than costs. This section comprises published Civil Engineering cost and tender indices, a constructed Civil Engineering cost index and comparisons of these with building cost and tender indices and with the retail price index. PRICE ADJUSTMENT FORMULA INDICES Cost indices for labour, plant and materials in Civil Engineering work are compiled and maintained by the Construction Industry Economics and Statistics Directorate (DERR) as Technical Secretariat to the Working Group on Building and Civil Engineering Indices. They are published in a monthly bulletin, formerly by HMSO, now by Tudorseed Construction, and are reproduced here with permission. Details of Tudorseed Construction, to whom enquiries concerning sales and subscriptions should be addressed, are given below. These indices were formerly known as NEDO or 'Baxter' indices. The original 1970 Series comprises 14 indices derived from Government sources. Two of them, DERV fuel (index 8) and Metal Sections (index 11B), are little used and a further two, indices 12 and 13, represent materials and labour specifically for structural steelwork. In December 1994 a new Series of indices was introduced, with 15 indices, including the new categories of ready Mixed Concrete (6), Plastic Products (8) and Sheet Steel Piling (15). The 1970 Series and the 1990 Series continue to be published in tandem. The reference numbers and titles are listed below. Quarterly values of the 1970 Series (excluding Indices 8 and 11B) are tabulated overleaf: Index nr 1970 Series Title Index nr 1990 Series Title
1 Labour and supervision in Civil Engineering 1 Labour and supervision
2 Plant and road vehicles: provision and maintenance 2 Plant and road vehicles
3 Aggregates 3 Aggregates
4 Bricks and clay products 4 Bricks and clay products
5 Cements 5 Cements
6 Cast iron products 6 Ready mixed concrete
7 Coated roadstone for road pavement & bituminous 7 Cast and spun iron products
Products 8 Plastic products
8 DERV fuel 9 Coated macadam and bituminous
9 Gas oil fuel products
10 Timber 10 DERV fuel
11A Steel for reinforcement 11 Gas oil fuel
11B Metal sections 12 Timber
12 Fabricated structural steel 13 Steel for reinforcement
13 Labour and supervision in fabricating and erecting 14 Metal sections
Steelwork 15 Sheet steel piling Price Adjustment Formulae for Construction Contracts Monthly Bulletin of Indices are published by: Tudorseed Construction Unit 3, Ripon House, 35 Station Lane, Hornchurch, Essex RM12 6JL Tel: 01708 444678 Fax: 01708 443002
PRICE ADJUSTMENT FORMULA INDICES - continued Quarterly values of price adjustment formula 1970 Series. Base: 1970 = 100 (except for index 11A which has a base date of July 1976).
