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 manufactureing; 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 refers to floor space of buildings under construction in the reference period, including the 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 total floor space of each building that has been completed in the reference period in accordance with the requirements of the design, up to the standard for being resided in and put into use, or has been checked and accepted by departments concerned as qualified ones or up to the standard of buildings completed and can be handed over for putting into use.

Total Number of Machinery and Equipment Owned by the End of Year refers to the number of machines and equipment owned by the enterprises, and listed as the fixed assets of the enterprises by the end of the year, including machinery and equipment for construction, production and transportation.

Total Power of Machinery and Equipment Owned by the End of Year refers to the total power of machinery and equipment owned by the enterprises,and listed as the fixed assets of the enterprises by the end of the year, including machinery and equipment for construction,production and transportation.The power of the machinery is calculated on basis of the designed or verified capacity,covering the power of the machinery/equipment and the separate power equipment serving the machinery/equipment (such as electric motors), but excluding welders, transformers and boilers.The unit used for the calculation of power is kilowatt, with horsepower converted to kilowatt by 1 horsepower=0.735 kilowatt.

Income from Settlement of Projects refers to the income received by the construction enterprise from the contracted project through settlement procedures, and other charges to the contractoree as operational costs in addition to the value of the project, such as temporary facility fee,labour insurance premium, moving cost of construction equipment,as well as various types of claims to the contractee.

Total Revenue of Enterprises refers to the sum of income from production and operation of enterprises, including income from settlement of projects and other operational income, namely:

Total Revenue of Enterprises=Income from Settlement of Projects+Other Operational Inc