Construction Economics
ENR publishes both a Construction Cost Index and Building Cost index that are widely used in the construction industry. This website contains an explanation of the indexes methodology and a complete history of the 20-city national average for the CCI and BCI. Both indexes have a materials and labor component. In the second issue of each month ENR publishes the CCI, BCI, materials index, skilled labor index and common labor index for 20 cities and the national average. The first issue also contains an index review of all five national indexes for the latest 14 month period.
Current Cost Indices
 | The CCI annual escalation rate inched up to 2.4% in May from 2.3% in April and 2.0% in March. |
20-CITY:
1913 = 100 |
May 2013
Index Value |
% change
Month |
% change
Year |
| Construction Cost |
9515.86 |
+0.3 |
+2.4 |
|---|
| Common Labor |
20185.92 |
+0.2 |
+2.5 |
|---|
| WAGE $/HR. |
38.35 |
+0.2 |
+2.5 |
|---|
|
 |
The BCI’s annual rate of inflation rose 0.3% in May, driven entirely by a 0.8% increase in the materials component. |
20-CITY:
1913 = 100 |
May 2013
Index Value |
% change
Month |
% change
Year |
|---|
| Building Cost |
5271.88 |
+0.3 |
+2.0 |
|---|
| Skilled Labor |
9029.22 |
0.0 |
+2.1 |
|---|
| WAGE $/HR. |
50.11 |
0.0 |
+2.1 |
|---|
|
|
A 1.0% increase in lumber prices and a 0.8% hike in steel prices in May pushed the MCI up 0.8%. |
20-CITY:
1913 = 100 |
May 2013
Index Value |
% change
Month |
% change
Year |
| Materials |
2976.14 |
+0.8 |
+2.0 |
|---|
| CEMENT $/TON |
109.91 |
0.0 |
+2.3 |
|---|
| STEEL $/CWT |
49.95 |
+0.8 |
-0.9 |
|---|
| LUMBER $/MBF |
434.26 |
+1.0 |
+10.5 |
|---|
|
Prices for Structural Steel Post Modest Gains.
 | Prices for structural steel post modest gains. Prices for structural steel posted a modest rebound in May, with ENR's 20-city average price for channel, wide-flange and I-beams inching up 0.5%. However, the average price for the three products is still 0.4% below a year ago. Prices are expected to decline during the second half of the year. The forecasting firm IHS Global Insight, based in Washington, D.C., predicts that prices for structural steel will drop 7.6% on average this year, compared to 2012. ENR's 20-city average price for grade-60 concrete reinforcing bar increased 0.7% this month, but price levels are still 4.7% below May 2012's level. |
Lumber Prices Continue To Rebound With Housing.
 | Lumber Prices Continue To Rebound With Housing. The latest U.S. Commerce Dept. data for March shows that residential construction is up 17.3% above the first quarter of last year. That increase in demand has helped to spark prices tied to the housing market. ENR's 20-city average price for 2 X 4 lumber in May was up 10.9% over a year ago for the most commonly used species of lumber. In February, the Bureau of Labor Statistics' producer price index for softwood lumber posted a 27% annual increase. In April, the average mill price for softwood lumber tracked by Random Lengths, Eugene, Ore., was up 44% from a year ago, its highest level since 2004. |
ENR's pipe prices for May 2013.
 | Pipe Prices Face Broad-Based Declines Prices for construction pipe products experienced across-the-board price cuts this month. The deepest monthly price drops were 2.0% for polyethylene (PE) underdrain pipe, 1.9% for ½-in. copper water tubing and 1.3% for 24-in. reinforced-concrete pipe. Prices for other diameter pipe in these categories—as well as prices for corrugated-steel pipe, vitrified-clay pipe, PVC water and sewer pipe and ductile-iron pipe—also declined this month. The monthly slide in RCP prices left ENR's 20-city average price between 3.4% and 5.3% below a year ago. PVC pipe prices are ranging between 2.4% and 6.1% lower than 2012. |
Prices for Asphalt Paving Oil Jump 1.1%
 | Prices for asphalt paving oil jump 1.1%. Highway construction through the first two months of this year was up 2.4% from 2012's level, according to the U.S. Dept. of Commerce's construction put-in-place data for February. Combined with higher oil prices, that extra demand has helped to push ENR's price for PG-58 asphalt paving oil up 1.1% this month and 6.6% above a year ago. In February, the Bureau of Labor Statistics' producer price index for diesel-fuel prices jumped 7.2% and was up 3.8% for the year. The PPI for ready-mix concrete in February was up 2.4% for the year, while ENR's 20-city average price for ready-mix concrete this month was up 2.8% for the year. |
- Construction Cost Index History
200 hours of common labor at the 20-city average of common labor rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20-city price from 1996, plus 1.128 tons of portland cement at the 20-city price, plus 1,088 board-ft of 2 x 4 lumber at the 20-city price.
- Building Cost Index History
68.38 hours of skilled labor at the 20-city average of bricklayers, carpenters and structural ironworkers rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20-city price from 1996, plus 1.128 tons of portland cement at the 20-city price, plus 1,088 board ft of 2 x 4 lumber at the 20-city price.
Cost Index History Tables
The building and construction cost indexes for ENR’s individual cities use the same components and weighting as those for the 20-city national indexes. The city indexes use local prices for portland cement and 2 X 4 lumber and the national average price for structural steel. The city’s BCI uses local union wages, plus fringes, for carpenters, bricklayers and iron workers. The city’s CCI uses the same union wages for laborers.
ENR Cost Indexes in 20 Cities 1978-2012
Atlanta, GA
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Baltimore, MD
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Birmingham, AL
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Boston, MA
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Chicago, IL
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Cincinnati, OH
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Cleveland, OH
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Dallas, TX
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Denver, CO
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Detroit, MI
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Kansas City, MO
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Los Angeles, CA
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Minneapolis, MN
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New Orleans, LA
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New York, NY
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Philadelphia, PA
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Pittsburgh, PA
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San Francisco, CA
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Seattle, WA
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St. Louis, MO
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ENR Cost Indexes in Canadian Cities 1978-2012
