Abstract
Construction, as a sector of the economy, plays a vital role in the creation of fixed assets across all branches of the national economy. Consequently, the development of each sector is largely dependent on the scale and progress of construction. Construction output is both diverse and highly individualized. It provides the material foundation for all sectors of the economy while simultaneously consuming the products of more than 70 branches of the national economy.
Changes in the prices of production factors used in the construction process, compared to a base period, are reflected in the Construction Cost Index (CCI). The CCI is an important macroeconomic indicator used to assess the country’s investment environment and to support planning and decision-making processes within the construction sector.
According to international methodology, the Construction Cost Index (CCI) represents the average level of prices for construction materials and services required to build residential, non-residential, and civil engineering structures during the reporting period, compared to a base period (3.4).
The Construction Cost Index includes expenditure categories such as:
- Expenses incurred by the construction company on raw materials and construction supplies used during the building process;
- Labor costs for workers directly employed in the construction process;
- Costs associated with the use of machinery and equipment during construction;
- Expenses related to transportation, fuel, and electricity;
- All other construction-related costs (excluding land value and architectural design fees).