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Bosnia and Herzegovina

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Producer prices in construction or construction costs

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Agency for statistics of Bosnia and Herzegovina 

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Producer Price Index in Construction/residential buildings (CPPI) is calculated by using the Standard Components Method (SCM). Price indices are compiled using the prices of these homogenous components. A representative construction (or a number of projects) is also chosen. The actual work entailed in its completion is broken down into precisely defined standard “construction works” or components. These indices are then aggregated for the residential building. Data are collected by a reporting method using the Quarterly Report on Prices of Construction works on residential buildings (K KPS GRAĐ PCG).

8 October 2025

The main purpose of this indicator is its use as a deflator, so it’s possible to compare the deflated value of production in construction over the periods. Producer Price Index in Construction (CPPI) is compiled from the collected price observations through time. Producer Price Index in Construction/residential buildings is an output index – it measures the rate of changes in the prices of construction works quarterly. The appropriate price for calculating the CPPI is the basic price that excludes VAT and similar deductible taxes which are directly linked to turnover. Price indices are calculated as a weighted average of the “relevant products”, in this case, performed construction works. Price is the unit value of construction work performed/conducted by the construction company in the reporting quarter. The price includes the invoiced unit value of the built-in materials, labor costs, and the margin of contractors for each type of construction work by appropriate measurement unit, expressed in KM (excluding VAT). Four main groups of construction works are identified for selected typical residential buildings and are: Architecture and construction works, Plumbing and sewers works, electrical installations works and Heating installations work. Indices for sub-groups, groups of construction works and total CPPI are calculated by using the Laspeyres formula.

Reporting units are business entities engaged in section F - Construction, in divisions 41 - Civil construction (excluding 41.10) and 43 - Specialized construction activities, according to the Classification of Activities of the KD BiH 2010 which is based on the Statistical Classification of Activities in the EU, (EU NACE Rev. 2.). Entrepreneurs are excluded from the survey.

This survey does not cover the reporting units (enterprises and LKAUs) outside the territory of Bosnia and Herzegovina).  Observation units coincide with reporting units.

Reporting units are businesses entities/legal units which are, by the main activity in the Statistical Business Register registered in divisions F41 (excluding 41.10) and F43 of KD BIH 2010, as well as businesses entities/legal units which are, by the main activity, registered in other activities (KAUs) but were misclassified or perform those activities additionally.

The survey on Producer Prices of Construction works on residential buildings (K KPS PCG) is based on the cut-off sample by using a number of employees variable (10 and more employees).  Entrepreneurs are not included in the target or frame population. Based on data available from the Statistical Business Register of BiH. In 2023, there were 228 enterprises selected into the sample.  

The BiH territory (includes two entities – the Federation of Bosnia and Herzegovina, Republika Srpska and the Brčko District). 

The reference period of this report is 2023. Data are collected in quarterly periodicity.

Considering a high rate of responses, about 95%, overall accuracy is very good. For all reporting units included in the sample, data must be completed before data compilation (reporting units are re-called or visited and, if even after re-calling it is not possible to obtain data from them, imputation shall be applied).  The exclusion of small enterprises shall not lead to an important bias in the series

Units of measure fro CPPI are indices and percentage changes (%).

Data for the Producer Price Index in Construction/residential building compilation are collected by using the Quarterly report K KPS GRAĐ PCG. Producer Price Indices for residential buildings in BiH are calculated by using the Standard Components Method (SCM). Price indices are compiled using the prices of these homogenous components. The weighting system for the Producer Price Index in Construction/residential buildings in BiH is based on the Bills of quantities for the typical residential building. A number of representative construction enterprises that have recently performed any of these construction works are surveyed to determine the price they have actually agreed to or invoiced for these construction works. Calculation of weights on the group level is done by using the values ratio of performed construction works for the group level of works and the total value of performed construction works for the typical residential building. Each group of works consists of a certain number of sub-groups of construction works. Price indices are calculated from prices of representatives of selected reporting units by aggregating simple price indices into an aggregate using a modified Laspeyres formula.

Quarterly statistical survey, by mail, using the K KPS GRAĐ PCG questionnaire.

Producer Price Index in Construction/residential buildings (CPPI) for BiH is disseminated on a quarterly basis.

The provisional quarterly indicators are transmitted to Eurostat in the required form (for the Total CPPI index). Data collection has been done in a quarterly frequency. Reporting units have the deadline for data delivery 25th in the month for the previous (reference) quarter. Eventually, two more days are available for re-calling of reporting units that didn’t deliver the data in order to get the data from all surveyed reporting units. The deadline for data publishing is T+55 days (for the level of BiH and the Brčko District) for the Preliminary results.

Considering that the CPPI results are published in accordance with the EBS Regulation 2019/2152, the results are comparable with those of other countries (EU primarily) which apply these regulations, methodology, and relevant classifications

The BiH Producer Price Index in Construction/residential buildings has been calculated since 2016 and published since 2019, quarterly. Producer Price Index in Construction/residential buildings time series are calculated under a single methodology and are comparable and free of any break in series.