Methodology – Construction from 2009 to 2012

Major changes from 2009 onwards
 

Starting from 2009 there are some changes in the short-term construction statistics as regards the survey methodology and data dissemination.
 
Among the most important survey methodology changes are:
 
-          the results are processed and disseminated in accordance with the new Classification of Economic Activities CZ-NACE (the national version of NACE Rev. 2) which replaced the former classification CZ-NACE (OKEČ, the national version of NACE Rev. 1.1),  
-          the Classification of Products by Activity CZ-CPA was updated accordingly,
-          new methods of non-response imputation have been applied and new estimates introduced for the not surveyed part of the population; they are based on administrative data sources,
-          errors in the classification of enterprises by principal activity were retroactively corrected together with the change of CZ-NACE and back-calculation of the historical time series,
-          as required by Eurostat, only essential indicators have been recalculated and will be measured,
-          re-basing to the year 2005,
-          new price indices and deflators (2005 = 100) have been used for deflation to constant prices,
-          change in the calculation methodology for the construction output index whose development is approximated by the development of construction work carried out by companies' own workers.
 
Due to the above changes the historical time series of key monthly indicators for the period 2000–2008 have been recalculated. The recalculated results, which are temporally comparable with the current data published since 1 January 2009, differ from the data published previously. The magnitude of differences depends on the impact of the above changes.
 
The most important changes in data dissemination:
 
-          after the introduction of the new CZ-NACE classification the determination of economic activities falling under construction is rather different; some activities have been excluded from construction and some newly included,
-          the results cover the whole population of enterprises (previously in most cases enterprises with 20 or more employees),
-          the index form is the primary form of information.
 
Methodology for construction statistics and dwelling construction
 
I. Basic determination of CZ-NACE activities classified to construction (changes against the former CZ-NACE)
 
The framework of section F “Construction” has changed. In contrast to a single division (45 “Construction) whose structure was based on the process of construction there are three divisions today (41 “Construction of buildings”, 42 “Civil engineering” and 43 “Specialised construction activities”) which are more related to the purpose and type of constructions. The classification of “Development of building projects” to Construction is the main change in comparison to the former CZ-NACE. Producers of wood, plastic and metal products who install their products were reclassified from industry to construction. Repair and maintenance of lifts and escalators is now under construction too. Installation of security systems such as burglar and fire alarms are excluded from the section of Construction.
 
II. Source of data
 
Key indicator calculations of short-term statistics are based on data from monthly statistical form Stav 1-12. Examples of statistical forms are available at http://apl.czso.cz/pll/vykazy/pdf1.
 
III. Population and sample selection
 
Reporting units are taken from the Business Register on the basis of their principal economic activity. The sample consists of the sample part and exhaustive part. In general, the contents and purpose of statistical surveys, set of reporting units, type of statistical survey, periodicity and delay before dissemination are set out in Decree No. 398/2008 Sb., on Statistical Survey Programme for a given calendar year.
 
IV. Key indicators published and basic concepts

• Construction enterprise is an enterprise whose principal activity is classified as construction. Construction enterprises by size.
• Construction output refers to construction work performed by enterprises whose principal activity is classified as construction.
• Construction work is work on construction, reconstruction, extension, modernisation, repair and maintenance of permanent or temporary buildings and civil engineering works. It includes construction of building structures and value of material inputs.
• Construction work carried out by companies' own workers represents the volume of construction work done by the unit’s registered workers, including productive work of apprentices and volume of construction work on own tangible fixed assets.
• Construction work under contracts in total refers to total value of the reporting unit’s own construction activity (incl. material inputs) performed based on a contract of delivery for final user (builder), including the value of subcontracted construction work, if any, received from other subcontractors to meet the contract of delivery for the final user. (Excluded is subcontracted construction work carried out by the reporting unit for other contractors or construction work for other kind of activity unit within the same reporting unit). The volume of work actually carried out is given in invoiced values (the value of work performed but not yet charged is estimated), excl. VAT. Construction work is split into domestic and non-domestic (carried out abroad).
• Construction orders are the volume of construction work to be carried out under contracts. It is work confirmed to the reporting unit by contracts with customers (incl. supplementary orders, etc.), irrespective of the commencement and period of work. They are recorded at ruling prices at the time of receipt of order, excl. VAT. Construction orders indicate demand for building materials and workforce during coming months.
• Stock of orders at quarter-end gives the value of received (and confirmed by the customer) not yet started orders on the one hand; on the other hand – for orders in progress – the value of work to be completed. This implies that construction work on orders not yet started is recorded in full value, whereas work on orders in progress in the remaining value (in the value of work to be completed). Excluded are orders already completed, even though not yet taken over and invoiced.
• Order increase is newly received and confirmed orders in the reference quarter, including confirmed supplementary orders relating to former orders. Also included are “short-term” orders, i.e. orders received and fully implemented in the reference quarter.
• Types of constructions:
• Residential buildings – this category includes multi-dwelling buildings (buildings intended primarily for housing);
• Non-residential buildings not designed for production – all non-residential buildings not designed for production, i.e. hospital or institutional care buildings, education buildings, office buildings (incl. office buildings for production, agricultural, trading or other enterprises), public entertainment buildings, hotels, etc.;
• Non-residential buildings designed for production – all non-residential buildings designed for production (for agriculture, industry, wholesale and retail trade, transport and communication, etc.);
• Civil engineering works – e.g. bridges, highways, streets and roads, railways, tunnels and subways, pipelines, communication and electricity lines;
• Water management works – land reclamation, dams and reservoirs on watercourses, channelisation.
• Building permit is a building permit under S. 115 with binding conditions for the construction and use of buildings in the sense of the Building Act (Act No. 183/2006 Sb., on town and country planning and building code).
• Building notification is a permit for simple building constructions under S. 104(2)(a) to (d) of Act No. 183/2006 Sb., on town and country planning and building code.
• Approximate value of constructions includes the total costs including technology costs (at current prices) of preparation, construction and putting into operation.
• New construction is quite a new building (new civil engineering work) irrespective of the type of building and technical project, purpose and duration of construction.
• Renewals and enhancements include:
• top extensions;
• side extensions;
• built-in extensions.
• Building is a usually roofed and walled structure.
• Dwelling is a room or set of rooms designed for housing according to a decision of the planning and building control authority; they may serve the purpose of housing as independent dwelling units. The number of dwellings is including independent rooms in school hostels, students’ halls of residence, homes for working juveniles and rooms in school dormitories, which are not managed by municipal offices.
• Dwellings started – dwellings in buildings whose construction was permitted in the reference period by granting building permit (since 2006) and by granting building permit or building notification (since 2007), irrespective of whether or not these dwellings were completed in the reference period. For the purposes of this definition the building is a family house or multi-dwelling building, top, side or built-in extension thereto, residential and nursing care home, non-residential building (tied dwellings – usually outside residential buildings) and any non-residential space being converted into a dwelling.
• Dwellings completed are dwellings for which, in the sense of Act No. 183/2006 Sb. (the Building Act), as amended, final inspection approval under S. 122 was issued by the planning building control authority before the end of the reference period.
• Floor area of rooms and spaces is inner floor surface between walls in plan view.
• Removal of constructions is carried out in accordance with S. 129 of Act No. 183/2006 Sb. (the Building Act).

 
V. Retroactive corrections, revisions

Data revisions and retroactive corrections are governed by the revision calendar. They are usually carried out together with data processing for the first month after the calendar quarter. Should serious input data corrections be made which have a significant impact on the results published, extraordinary revisions outside the revision calendar might be made.
 
VI. International comparability

Short-term statistics in the European Union are provided for by Regulation (EC) No. 1158/2005 of the European Parliament and of the Council of 6 July 2005 amending Council Regulation (EC) No. 1165/98 concerning short-term statistics. The introduction of the new classification of economic activities, including impacts on short-term statistics, is provided for by Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No. 3037/90 as well as certain EC Regulations on specific statistical domains. All the published short-term indicators comply with the above regulations.
 
VII. Seasonal adjustment

The TRAMO / SEATS method implemented in program DEMETRA is used for seasonal adjustment. This method belongs to the methods preferred by Eurostat for the purposes of seasonal adjustment of series of economic indicators.
 
VIII. Methodological comparability with other surveys
 
The results of monthly surveys may differ from the results of quarterly or annual surveys.

 IX. Types of data publication

The results of the monthly survey are published:
 
1) in news releases Industry, construction – on a monthly basis, 
2) in series on the website of the Czech Statistical Office – Time series
3) transmitted to Eurostat
4) in documents available on the web
 
 
Contact: Petra Cuřínová, phone (+420)274054199, E-mail: petra.curinova@czso.cz