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Macro models of UK construction contract prices

Akintoye, Akintola S. and Skitmore, Martin (1993) Macro models of UK construction contract prices. Civil Engineering Systems 10(4):pp. 279-299.

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Abstract

This paper describes the derivation of macro construction contract price models that are based on the economic theory of demand and supply using OLS multiple regression analysis. A structural equation model is presented which offers a structural explanation of the movements in the construction tender price index. Leading indicators of contract prices (in real terms) produced by the structural equations were unemployment level, real interest rate, manufacturing profitability, number of registered construction firms, building cost index, construction productivity and construction work stoppages. The equation produced an adjusted R2 of 0.97 for deflated data with minimal serial autocorrelation. A predictive reduced-form model is also developed that utilises simultaneous equation models comprising construction demand, supply and equilibrium models.

Item Type:Journal Article
Status:Published
Keywords:Construction contract price; statistical models; construction demand; construction supply
Subjects:310000 Architecture, Urban Environment and Building > 310200 Building
310000 Architecture, Urban Environment and Building > 310100 Architecture and Urban Environment
310000 Architecture, Urban Environment and Building
ID Code:4427
Deposited By:Alwi, Sugiharto
Deposited On:09 June 2006
Alternative Locations:http://www.tandf.co.uk/journals/titles/10286608.asp
Copyright Owner:Copyright 1993 Taylor & Francis
Copyright Statement:First published in Civil Engineering Systems 10(4):pp. 279-299.