Explanatory Notes on Main Statistical Indicators

Statistical Unit in the Construction Industry refers to a corporate enterprise engaged in the construction of buildings and structures and in the installation of equipment. A corporate construction enterprise should have qualification certificates with independent accounting system, and should meet the following 3 requirements: a) being set up in line with relevant legal basis, having its full name, organization and location, and capable of taking civil liabilities; b) independently possessing and using its assets and assuming its liabilities, and entitled to sign contracts with other institutions; and c) making independent accounts of its profits and losses, and capable of compiling its own balance sheet.

Gross Output Value of Construction refers to total of construction products and services, expressed in money terms, produced or rendered by construction and installation enterprises during a given period of time. It includes:

(1) Output value of construction projects: the value of projects covered by the project budgets;

(2) Output value of installation projects: the value of the installation of equipment, (excluding the value of the equipment to be installed);

(3) Other output values: the output value of construction industry apart from that of construction projects and installation projects. It includes: output value of repair of buildings and structures; output value of non-standard equipment manufacturing; overhead expenses received by contracted enterprises from the sub-contracted enterprises and the completed output value of construction activities for which there is no clear definition.

a. Output value of repair of buildings and structures: the value created through the repairs of buildings or structures. It does not include the value of buildings or structures being repaired and the value of the repair of production equipment;

b. Output value of manufactured non-standard equipment: the value of non-standard production equipment, including raw materials and manufacturing cost, made for the construction project (i.e., chemical plant; kettles or tanks used by refineries; various fillers, triangle tanks, valves used by mines). It also includes the output value of equipment manufactured by subsidiary workshops.

Value-added of Construction refers to the final result of the activities of production and operation of enterprises of the construction industry in monetary terms during the reference period.

Starting from the 2004 economic census, value-added of construction is calculated by both production approach and income approach, with the figures from the income approach as the final figures., Under the income approach,, calculation starts from the perspective of income and is based on the share of income derived from the production process by the relevant factors of production.. Specifically, value-added of construction for the Census years is calculated in accordance with the Programme of Compilation of GDP and National Accounts for the Year of Economic Census, and value-added of construction for other years is calculated in accordance with the Programme of Compilation of GDP and National Accounts for the Non Economic Census Years.

Floor Space of Buildings Under Construction refers to floor space of buildings under construction during the reference period, including the floor space of buildings for which construction has newly started; buildings for which construction has started earlier and is continuing during the reference period; and buildings for which construction has been suspended earlier but has restarted during the reference period; buildings completed during the reference period; and buildings under construction but construction has subsequently been during the reference period.

Floor Space of Buildings Completed refers to the floor space of buildings that are completed in the reference period in accordance with the requirements of the design, up to the standard for being put into use, and having been checked and accepted by departments concerned as qualified ones.