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Last edited 25 Mar 2022
Building volume or area method
The glossary of statistical terms, published by the Organisation for Economic Co-operation and Development (OECD), states in relation to the building volume or area method (construction price indices): ‘For this method in the compilation of construction price indices the cubic metre is used as a common denominator to compare the costs of a recent construction to costs in a base period. An index of the value per cubic metre is calculated and adjusted for differences in volume, quality, period, and region. These adjustments enable a price index to be prepared. However, the use of this method requires the construction activity included to be homogenous. The index is valid only for each reference building, etc. as it was originally built.’
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