1. Global Core List survey materials for regional PPP updates
Construction and Civil Engineering
2nd Regional Coordinating Agencies meeting May 27-29, 2015 Washington, DC

2. Recap: ICP 2011 construction approach
38 Material items
33 “Pure” material items; 5 “equipment-type” items
Allocated to basic headings based on relevance
5 + 5 Equipment hire items
5 original items; splitted to w and w/o operator
For global PPP calculation ref. PPP from M&E
Input
Cost Approach
7 labor items
1 un-skilled labor; 6 skilled labors
No adjustment for productivity
Other input data
Resource mixes: used to weight sub-heading
Mark-ups and professional fees: not used

3. …Challenges with the 2011 approach
Price data quality and reporting
Generally very high CVs and several missing data points
Item definitions
In order to ensure regional “representativity” several item definition were possibly too loose, especially for equipment
Unit of measurement (tons, m2, m3, hours, days, etc.)
Prices were allowed to be reported to “alternative” unit of measurement, which lead to issues with comparability
Resource mixes, mark-ups and professional fees
Several missing data points and issues with data quality

4. Suggestions for improvements: Materials (1)
1. Introduction of Structured Product Definitions (SPDs)
All sub-headings
To ensure clear, structured and comprehensive item definitions
A review by construction expert(s) would still be recommended…
2. Fixing unit of measurement
NCAs need to ensure reporting in requested unit of measurement

5. Suggestions for improvements: Materials (2)
3. Providing more technical details to “equipment-type” items
In order to ensure comparability
Brand and model are presented as examples
Alternative would be to follow “fixed” or “unspecified” brands as in M&E
4 items “linked” to M&E
1 item defined but not linked
Air-conditioning equipment
1 item suggested to be deleted
Electric fan
1 item could be modified to fit M&E
Metal storage tank; from single skinned 15m3 to double skinned 50m3?

6. Suggestions for improvements: Equipment hire
1. Providing more technical details on the equipment to-be-hired
Including example brand and model
2. Fixing ex/inclusion of operator
Duplicated items for with and without operator
3. Defining exclusion of fuel
Alternative would be inclusion?
4. Adding “specify” parameter
To record exact hiring details

7. Suggestions for improvements: Labor
1. Proving item specifications as per ISCO classification
General definition and example tasks
2. “Fixed” details
Unit of measurement
Hour; day; month?
Skill level and training
Salary type
Information to be specified
Items to added?
Painter; would however increase the ratio of unskilled vs. skilled to 1:7

8. Points for discussion (1)
General
Suggested “refinement” approach agreeable?
SPDs; fixing of units; more detailed definitions
Materials
Any suggestions for removing or addition of items?
Suggested “links” to M&E items agreeable?
Change the metal storage tank item?
Any volunteers for re-refining the item definitions?
Equipment hire
“Price capture approach” still feasible?
Exclusion of operating fuel agreeable?

9. Points for discussion (2)
Labor
Suggested links to ISCO classification agreeable?
Fix the unit of measurement to hour, day or month?
Add “painter” item?
Resource mixes
Keep the data requirement?
Update or keep global default values?
Professional fees
Keep the data requirement?
Further research potential usage of professional fees in PPP estimation?
Eurostat-OECD program
Extrapolate 2011 ICP prices; OR
Carry-out a survey for global PPP update(s)?