Towards the establishment of a relevant national tender price index for the South African building industry

Abstract

There is currently only one published tender price index available in South Africa for use by built-environment practitioners. The purpose of this article is to report on an investigation into the nature of a more recent tender price index.

A literature study was conducted to examine the theory of indices in order to establish which type of index as well as which formula would be appropriate for use in South Africa. Thereafter, the priced bills of quantities of a selected number of projects were analysed in order to identify representative indicator items as well as the weighting thereof for an index. Thirty-two indicator items were identified that could be used for calculating an index. In addition, sourced priced bills of quantities for a number of projects over a six-and-a-half year period were analysed to calculate average rates for the 32 selected indicator items. These rates, together with the established weightings of items, were used to calculate an index.

The main finding that emerged from the research was that, by using the above methodology, an alternative tender price index could be determined for use by the South African building industry.

Keywords: Indices, bills of quantities, rates

Daar is tans slegs een gepubliseerde tenderprysindeks beskikbaar in Suid-Afrika vir gebruik deur bou-omgewing praktisyns. Die doel van hierdie artikel is om verslag te lewer oor ’n studie wat gedoen is oor hoe ’n meer onlangse tenderprysindeks daar sou uitsien.

’n Literatuurstudie is uitgevoer om die teorie van indekse te bestudeer. Dit is gedoen ten einde te bepaal watter tipe indeks asook watter formule die mees geskikte sou wees vir gebruik in Suid-Afrika. Daarna is die gepryste hoeveelheidslyste van geselekteerde projekte ontleed om  verteenwoordigende aanwyseritems te bepaal asook die gewigte daarvan. Twee-en-dertig verteenwoordigende aanwyseritems wat gebruik kan word vir die berekening van die indeks is geïdentifiseer. Verdere ontleding van ingewinne gepryste hoeveelheidslyste van ’n aantal projekte oor ’n ses-en-’n-halfjaar tydperk is gedoen om gemiddelde tariewe vir die gekose 32 aanwyseritems te bepaal. Hierdie tariewe, saam met die bepaalde gewigte van die items, is gebruik vir berekening van ’n indeks.

Die  belangrikste bevinding van die studie is dat deur gebruik te maak van bostaande metodologie kan ’n tenderprysindeks daargestel word vir alternatiewe gebruik deur die Suid-Afrikaanse bou-industrie.

Sleutelwoorde: Indekse, hoeveelheidslyste, tariewe