Synchronicity of global construction cost indexes

Abstract

Purpose

The purpose of this paper is to examine the features and tendency of cost indices in the global construction setting.

Design/methodology/approach

Data from 22 countries/regions are collected and analyzed using maximum variance formulation and Kendall rank correlation coefficient.

Findings

It is found that global construction cost indexes (CCIs) have commonly maintained a steady increase for decades, and the CCIs synchronize with each other. Overall synchronicity and synchronicity of different countries pairs have increased with time significantly.

Research limitations/implications

The major limitation, however, is the availability of data: only 22 regions/countries are examined, the distribution of these regions/countries is imbalanced between different continents and various indices are adopted around the world, of which statistical methods are not same.

Practical implications

The implication is that a better perception of CCIs enables contractors to have a robust estimation for bidding prices and to improve the efficiency of construction projects management. The research findings also provide a useful reference for those countries that have not established construction cost indices databases to forecast the tendency of domestic construction industries.

Originality/value

This paper contributes to the overall body of knowledge by presenting the co-movement of global CCIs and measuring the changes of CCI synchronicity with time and in different countries pairs.

Citation

Zhang, R., Xing, J., Ye, K., Lu, W. and Shan, Y. (2019), "Synchronicity of global construction cost indexes", Engineering, Construction and Architectural Management, Vol. 26 No. 3, pp. 367-385. https://doi.org/10.1108/ECAM-02-2018-0045