Analysis construction industry on the basis of price trends of labor cost

Abstract

Records of the national, average pay rates in the construction industry, at quarterly intervals, allow cost - planning departments of contractors and investment services to assess current market conditions in the construction industry. Price quarterly publications, such as Sekocenbud and Intercenbud, contain important information, enabling production preparation departments to prepare a comparison of the production in-house labor rates with the market production labor rates. The article attempts to analyze the economic situation of domestic construction production in the years 2010-2016 based on the emerging price trends of the of labor cost estimates in this period, taking into account the impact of seasonal construction services. In "Polish cost estimates standards", the labor cost estimate rate is present in one form: the net labor cost estimate rate, which fully corresponds to the rate defined in calculation formulas. The rates of labor cost estimates, in individual regions of Poland, are shaped according to the presented market situations. This clearly is reflected in the periodic (quarterly) regional records of labor rates in the Sekocenbud system. The Act on prices of July 5, 2001 does not contain any normative regulations regarding the methods of cost estimation of construction works. The necessity to remain competitive forces large construction corporations to use a subcontracting system, involving several or even several dozen smaller, specialized in a narrow range of works, business entities in which labor costs are definitely lower, because they are reduced by a lower value of internal costs.