Editors

SPON'S 2016
AECOM
MidCity Place PRICE BOOKS UPDATE
71 High Holborn
London WC1V 6QS
Tel: +44 (0) 20 7061 7000
ONE
Fax:+44 (0) 870 048 0789
e-mail: spons.europe@aecom.com
www.aecom.com

Publishers
Taylor & Francis
2 Park Square
Milton Park, Abingdon
Oxon OX14 4RN
Tel: +44 (0) 207 017 6000
Fax:+44 (0) 207 017 6699
www.taylorandfrancis.com

INCORPORATING CHANGES UP TO 30 NOVEMBER 2015

This Update covers the 2016 editions of the Architects' and Builders' Price Book, the Civil Engineering and Highway
Works Price Book, the External Works and Landscape Price Book and the Mechanical and Electrical Services Price
Book. Details of changes in material prices, wage rates etc. are given and the various indices and adjustment factors
presented in the books are brought up to date.
Each of the Price Books is dealt with separately in its own section of the Update. Information on changes to the
Architects' and Builders' Price Book appears on pages 3 and 4, the Civil Engineering and Highway Works Price Book
on pages 5 and 6, the External Works and Landscape Price Book on page 7, and the Mechanical and Electrical
Services Price Book on pages 8 and 9.
Corrections are headed 'Erratum' and boxed to distinguish them from updated information.
Spon's 2017 Price Books are planned to be published in September 2016.

Spons 2016 Price Books Update: One page 1

The Construction Climate
Construction activity trends
Tender prices continued their brisk rise, increasing to 9.5% provisionally on an annual basis in Q3 2015. This is the
fastest pace of price increases since 2002.
Despite annual consumer price inflation turning negative again, construction tender prices continue to rise strongly.
Aecoms Tender Price Index shows that building price inflation accelerated once again in the first half of 2015,
increasing at the fastest rate since 2002 as the construction industry remained in bullish mood. More than this, many
price metrics have now surpassed those of the peak seen in 2008.
Labour rates continue to be the main driver behind construction cost inflation with industry pay continuing to exceed
increases in average earnings.
Tender price index
Tender prices increased 8.8% on the year in Q2 2015. Provisional figures for Q3 2015 indicate an increase of 9.5%
over the previous 12 month period. The increase in prices was underpinned by plenty of available work, a lack of
capacity and strong labour cost increases. This is despite building materials price inflation posting much lower rates of
annual change.
Building cost index
A composite measure of building costs increased over the year by 1% at Q3 2015. Labour costs are currently the
primary driver of building cost inflation, with large increases in wages being largely offset by flat or falling prices for key
building materials.
Materials
The Department for Business Innovation & Skills (BIS) headline All Work Construction Material Price Index
decreased by 0.2% in September 2015 compared to the previous month, following a 0.3% decrease in August. In
September, New Housing, Other New-Work and Repair and Maintenance decreased by 0.3%, 0.3% and 0.2%
respectively. Looking at the longer term change, the All Work material price index fell by 2.3% in September 2015
compared to the same month in the previous year. This is the 10th consecutive decrease on this basis.
The long term trend for construction materials is one of continuing small increases. The year-on-year change to
October 2015 was -0.3%.
Since the book prices were compiled in May 2015 the materials experiencing the largest price increases and
decreases are:
Percentage change
May 2015October 2015
Increases
Builders ironmongery 12%
Insulating materials 4%
Central heating boilers 3%
Metal doors and windows 1%
All bricks 1%

Decreases
Imported sawn or planed wood -3%
Fabricated structural steel -4%
Imported plywood -7%
Concrete reinforcing bars -7%
Source BIS
Labour
The early part of Q3 2015 saw a large increase in earnings, which accounted for these notable annual change
increases. Regular pay (excluding bonuses and arrears) increased to 568 per week, with annual rates of 6% on a
single-month basis and 6.6% using a 3-month average.
Construction industry regular and total pay continued to exceed similar changes to average earnings for the whole
economy.

Spons 2016 Price Books Update: One page 2

SPONS ARCHITECTS AND BUILDERS PRICE BOOK 2016
Costs and Tender Prices Indices
Building Costs Indices
p 37
The table of building cost indices may be updated as follows:
Year
2012 105
2013 108
2014 109
2015 111 (F)
2016 114
(F) = Forecast thereafter
Tender Prices Indices
p 38
The table of tender price indices may be updated as follows:
Second Third Fourth Annual
Year First quarter
quarter quarter quarter average
2012 446 446 443 439 443
2013 440 442 446 453 445
2014 457 464 474 482 470
2015 492 501 519 (P) 530 (F) 511
2016 539 548 556 563 551
(P) = Provisional; (F) = Forecast thereafter

AECOM Tender Price Index | AECOM Building Cost Index | Retail Price Index

125 F o r e c a s t

120

115

110
INDEX (2010=100)

105

100

95

90 AECOM Tender Price Index

AECOM Building Cost Index

85
Retail Prices Index
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012 2013 2014 2015 2016

Spons 2016 Price Books Update: One page 3

Prices for Measured Works
Materials Prices
Reference should be made to the material prices changes notified on page 2 of this Update.
Rates of Wages
Construction Industry Joint Council: Working Rule Agreement allowed for a 3% increase from 29 June 2015 and these
are reflected in the book. This agreement runs until June 2016.
A similar agreement is in place for BATJIC with a two-year pay deal effective from 30 June 2014. The deal involves
variable wage rises averaging 2.5% for the standard wage rates. A further set of rises averaging 3% came into effect
from 29 June 2015.

Erratum
p 172
The fourth item should be 600 mm x 600 mm x 60 mm precast concrete slabs (not 600 mm x 600 mm x 600 mm).

Spons 2016 Price Books Update: One page 4

SPONS CIVIL ENGINEERING AND HIGHWAY WORKS
PRICE BOOK 2016
Cost and Tender Price Indices
A Constructed Cost Index based on the Price Adjustment Formula Indices
p 55
The table and chart for the Constructed Civil Engineering Cost Index may be supplemented as
follows:
Year First Second Third Fourth Annual
quarter quarter quarter quarter average
2014 113 113 113 111 112
2015 108 109 108 (P)
(P) = Provisional

AECOM Constructed Civil Engineering Cost Index | AECOM Building Cost Index | Retail Price
120 Index

115

110
Index (2010=100)

105

F o r e c a s t
100

95
AECOM Civil Engineering Cost Index
90
AECOM Building Cost Index
85
Retail Prices Index

80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2010 2011 2012 2013 2014 2015 2016
Year

Spons 2016 Price Books Update: One page 5

The Road Construction Tender Price Index
p 56
The table and chart may be supplemented as follows:
Year First Second Third Fourth Annual
quarter quarter quarter quarter average
2014 123 123 124 123 123
2015 122 121 (P)
(P) = Provisional

BIS Road Construction Tender Index | AECOM Building Cost Index | Retail
130 Price Index
F o r e c a s t
125

120

115
Index (2010=100)

110

105

100

95

90 BIS Road Construction Cost Index

AECOM Building Cost Index

85
Retail Prices Index
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012 2013 2014 2015 2016
Year

Prices for Measured Works

Materials Prices
Reference should be made to the material prices changes notified on page 2 of this Update.
Rates of Wages
Construction Industry Joint Council: Working Rule Agreement allowed for a 3% increase from 29 June
2015 and these are reflected in the book. This agreement runs until June 2016. A similar agreement
is in place for BATJIC.

Spons 2016 Price Books Update: One page 6

SPONS EXTERNAL WORKS AND LANDSCAPE PRICE
BOOK 2016
Cost Indices
The Constructed Landscaping Cost Index
p 24
The Constructed Landscaping (Hard Surfacing and Planting) Cost Index may be updated as follows:
Year First Second Third Fourth Annual
quarter quarter quarter quarter Average
2014 878 880 890 886 884
2015 881 889 898 (P)
(P) = Provisional
Prices for Measured Works
Materials Prices
Reference should be made to the material prices changes notified on page 2 of this Update.
Rates of Wages
Construction Industry Joint Council: Working Rule Agreement allowed for a 3% increase from 29 June
2015 and these are reflected in the book. This agreement runs until June 2016. A similar agreement
is in place for BATJIC.

Spons 2016 Price Books Update: One page 7

SPONS MECHANICAL AND ELECTRICAL SERVICES PRICE
BOOK 2016
Cost Indices
p 88
The tables of cost indices for Mechanical Services and Electrical Services should be revised as
follows:
Mechanical Services
Year First Second Third Fourth
quarter quarter quarter quarter
2014 621 620 620 630
2015 629 628 (P) 628 (F) 636
2016 638 639 641 652
(P) = Provisional; (F) = Forecast thereafter
Electrical Services
Year First Second Third Fourth
quarter quarter quarter quarter
2014 797 795 795 795
2015 812 811 812 (P) 809 (F)
2016 829 829 830 831
(P) = Provisional; (F) = Forecast thereafter

Prices for Measured Works

Mechanical cost index
The rate of annual change at Q3 2015 eased again to 0.8%. Labour cost inflation contributed most of
the annual increase, despite large falls in many commodity inputs.
Electrical cost index
The electrical cost index increased by 2.1% over the year, despite continuing large falls in many input
costs for metals commodities.
Materials Prices
Reference should be made to the material prices changes notified on page 2 of this Update.
Rates of Wages
JIB electrician rates will increase by 3% from 4 January 2016.
JIB Plumbing Mechanical Engineering Services in England and Wales (JIB-PMES) will receive a 2.5%
increase from 4 January 2016.
Building & Engineering Services Association workers received an increase October 2015 and these
are reflected in the book.

Erratum
pp 151520
Labour rates in the Mechanical Installations part of the book have been mistakenly double entered a
preliminary and OHP recovery of 20%. Therefore readers are advised to reduce the labour cost
element by 24%. The authors apologise for this error.

Spons 2016 Price Books Update: One page 8

pp 525653
Labour rates in the Electrical Installations part of the book have been mistakenly double entered a
preliminary and OHP recovery of 20%. Therefore readers are advised to reduce the labour cost
element by 24%. The authors apologise for this error.

Spons 2016 Price Books Update: One page 9