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ANALYSIS OF HISTORICAL CONSTRUCTION COST MOVEMENTS IN SCOTTISH SOCIAL HOUSING
FINAL REPORT

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Contents

LIST OF CHARTS
LIST OF TABLES
EXECUTIVE SUMMARY
1.0 INTRODUCTION
1.1 Terms of reference
1.2 Research aims and scope of work
1.3 Methodology
1.4 Limitations to the scope of the study
1.5 Sources of data
1.6 Time frame
1.7 Real costs
2.0 CAPITAL COSTS
2.1 General
2.2 Department of Trade and Industry
2.3 Building Cost Information Service
2.4 Conclusion
2.5 Scottish Social Housing Refurbishment Cost Model
3.0 MAINTENANCE COSTS
3.1 Introduction
3.2 Department of Trade and Industry Indices
3.3 Building Maintenance Information Indices
3.4 Maintenance Cost Model specific to Scottish Housing Maintenance
3.5 Summary
3.6 Capital and Maintenance Costs Compared
4.0 TENDER PRICES
4.1 Introduction
4.2 Department of Trade and Industry
4.3 Scottish Executive
4.4 Building Cost Information Service
4.5 Conclusions
5.0 OUTPUT PRICES
5.1 Introduction
5.2 Output deflators for construction work
5.3 Output deflators for direct labour and contractors
5.4 BMI Output Prices Indices
6.0 MANAGEMENT COSTS
6.1 Introduction
6.2 Wages and salaries
6.3 Property
6.4 Management Cost Model
6.5 Conclusion
7.0 INDEX SERIES COMPARED
7.1 Introduction
7.2 Most relevant index series
7.3 Long term trends
7.4 Medium term trends
7.5 Short term trends
8.0 REGIONAL VARIATIONS
8.1 Local Authority Housing Management and Maintenance Expenditure
8.2 Repair and maintenance expenditure
8.3 Construction cost variations
8.4 Islands
8.5 Changes over time
8.6 Management cost variations
8.7 Conclusions
9.0 WAGES
9.1 Introduction
9.2 Earnings growth generally
9.3 Local Authority staff
9.4 Private sector construction workers
9.5 Management staff in the RSL sector
9.6 Conclusion
10.0 ECONOMIC CYCLES
10.1 Introduction
10.2 Conclusions output and tender prices
10.3 Construction output and Gross Domestic Product
10.4 Gross Domestic Product - Great Britain and
Scotland
10.5 Contractors' New Orders and Construction Output
10.6 Gross Domestic Product and Earnings Growth
10.7 Conclusion
11.0 PRODUCTIVITY
11.1 Introduction
11.2 Productivity in the economy generally
11.3 Productivity in the economy - Scotland compared to U.K.
11.4 Productivity in construction
11.5 Construction productivity in Scotland
11.6 Conclusion
12.0 FORECASTS
12.1 Gross Domestic Product
12.2 Construction output
12.3 Construction Prices
13.0 LITERATURE REVIEW
13.1 Definitions
13.2 Methodology
13.3 Housing Maintenance Costs and Strategies
13.4 The Impact of Housing Stock Transfer
13.5 Wages, Labour and Productivity
13.6 The Scottish Economy
REFERENCES
APPENDIX A: INDEX SERIES EXAMINED IN STUDY
APPENDIX B: COMPARISON OF RETAIL PRICES INDEX (RPI) AND GROSS DOMESTIC PRODUCT (GDP) DEFLATOR TO CONVERT NOMINAL COST AND PRICE TRENDS TO REAL COST AND PRICE TRENDS
APPENDIX C: INDICES TABLES

Davis Langdon & Everest
MidCity Place
71 High Holborn
London
WC1V 6QS
Tel: 020 7061 7000
Fax: 020 7061 7061

December 2003

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