Construction Costs Index / CCI

Sources
Dernière mise à jour le : 30/06/2017

Présentation de l'opération

Organisme producteur :

Insee. Direction des statistiques d'entreprises (DSE)

Type d'opération :

Price Indices

Objectifs :

The Construction Costs Index (CCI) is a quarterly index, reference 100 in the fourth quarter of 1953, date of its creation, which was used to index the leases until 31st august of 2014.
Despite its name, the CCI measures changes in the prices of construction of new dwellings mainly used for non co-housing in France (between 1953 and 1956, this index actually measured changes in costs, and its name has persisted).It is published in the Official Journal about 12th of the third month following the quarter under review. It is calculated by INSEE in collaboration with the Ministry of Ecology, sustainable Development and Energy.
The price observed is the price agreed between the contracting authorities and the firms undertaking building work, excluding some acquisition costs of housing (land costs, ancillary costs of real estate and transfer of property taxes, financial costs, etc.). The cost of the construction itself is apprehended by other indicators, such as "BT index" published monthly by INSEE.

Champ de l'opération

Champ géographique :

Metropolitan France

Caractéristiques techniques

Unité statistique enquêtée :

Natural person or corporate entity

Périodicité de l'opération :

Quarterly

Période et mode de collecte :

The survey relating to 1,600 building permits is then administered by post in two phases:

1) A first phase, which sets out to identify construction operations which effectively conform to the CCI requirements, with a four-pages questionnaire sent to the project owner of the building permit surveyed, two months before the start of the quarter.

2) A second phase in which, from the signature of the contracts, the surveyors collect the documents corresponding to these contracts, on the one hand, and a four-page questionnaire concerning the administrative characteristics of the construction operation (price, date, etc.) and its technical characteristics (area, number of levels, etc.) on the other hand.

The data are collected from the project manager for conventional individual building permit and from the project owner for building permit of two dwellings and more (individual grouped and collective housing).

Historique :

The Construction Costs Index (CCI) was created in 1953. The first five New Housing Cost Price Surveys (NHCP) took place between 1969 and 1976.This survey was renewed in 1978 and merged with the CCI. The questionnaire has been redesigned on several occasions since 1990. In 2009, the French National Statistical Information Council (CNIS) registered the CCI-NHCP on the programme of public-interest services of a mandatory nature.
Since the publication of the index for the first quarter of 2010, the use of the hedonic method as a replacement for the retrospective price breakdown has made it possible to reduce the statistical burden of the surveys significantly during the second phase.
The questionnaire relating to constructions of two dwellings and more has been reduced from fourteen to four pages.

Source d'information :

CCI-NHCP survey, Sit@del2

Plan de sondage :

The CCI is calculated using the hedonic method based on elements derived from the quarterly survey concerning the five New Housing Cost Price Surveys (NHCP).The sampling basis is the Sit@del2  building permit database. Five months before the start of each quarter, a sample of 1,600 building permits is selected from the Sit@del2 database of building permitplanning permissions issued in mainland France for new housing to be used for residential purposes.
The sample is selected according to a sampling plan, stratified by region according to the type of construction (pure individual, grouped individual, collective) and the  scale of the building permit. These building permits represent approximately 7,000 to 8,000 new dwellings, depending on the quarters of the years in question.The building permits selected in the first phase do not automatically lead to actual constructions (cancellation of permits, postponement of operations, etc.), or do not include all of the requirements for inclusion in the calculation of the Construction Costs Index.
In addition, the collection of contract documents may fail. All in all, around 500 construction operations will be suitable for calculating the index (second phase).

Méthodologie :

The hedonic method establishes a relationship, using an econometric model, between the market price of construction and characteristics of structure, which allows to assess the implicit value of these various characteristics.
For each type of construction (pure individual, grouped individual and collective), the logarithm of the average price of the building is modeled using different explanatory variables (logarithm of the average area, location of the building in one of ZEAT, number of levels of living space, basement, garage, boiler type, conventional heating, wall coverings and flooring, paint, non-equipped kitchen, the living standards of the construction site and time variables of the six quarters covered, etc.).
The temporal evolution of prices is captured in the model by the indicator variables of the dates. Such a method is already used by INSEE, especially for the prices of second-hand dwellings. It ensures the inclusion of changes in quality of housing.
The model coefficients are re-estimated each quarter over a moving window of six quarters, the models themselves are reviewed periodically. Hedonic CCI of all new housing construction results from the aggregation according to chain-linked Paasche technique of these three sub-indices in proportion to the importance of each type.

Autres spécifications :

The Construction Costs Index was mainly used to revise commercial property leases (Commercial Code, Act No. 2001-1168 of 11th December 2001 art. 33 V Official Journal of 12th December 2001, Articles L145- 33 and L145 -34). Since the Act 2014-626 of 18th June 2014 (Article 9) which amends the former act and the article L145-34 of the Commercial Code resulting two indices can be used for the revision of commercial property leases:

- The Commercial Lease Index (ILC) for commercial and craft activities;
- The Tertiary Activities Rent Index (TARI) for tertiary activities other than commercial which are carried on in business premises, including in particular professions and activities in logistics warehouses.
From 1rst September 2014, the Construction Costs Index (CCI) is no longer part of the proposed indices as benchmark for professional or commercial lease indices. According to the activity, the ILC or TARI will serve as reference for the review or the conclusion of commercial rentals.
CCI enters the composition of ILC and TARI up to 25%.
The decree No. 2008-1139 of 4th November 2008 on the Commercial Lease Index and the decree No. 2011-2028 of 29th December 2011 relating to the Tertiary Activities Rent Index define the activities concerned and the modalities of calculation and publication of these indices.
The Construction Costs Index, the Commercial Rent Index and the Tertiary Activities Rent Index are subjects of a publication in the Official Journal. The date of publication of the index in the Official Journal serves as a reference.
Formerly, the Construction Costs Index was also used in the review of residential leases. Since 2006, the Rent Reference Index (IRL) has been the only official reference on the subject and since 2008, the CCI has no longer been used in its composition.

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