Contractors' commissioned projects up by 15.9%

Private residential building projects were the main contributors in the construction work increase.

In a news release, the Census and Statistics Department announced that the total gross value of construction works performed by main contractors in the first quarter of 2012 increased by 25.2% in nominal terms over a year earlier to $37 billion, according to the provisional results of the Quarterly Survey of Construction Output released June 12.

After discounting the effect of price changes, the total gross value of construction works performed by main contractors increased by 15.9% in real terms over the same period.

Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled $11.2 billion in the first quarter of 2012, up by 49.2% in nominal terms over a year earlier. In real terms, it increased by 41.2%. The increase in the gross value of construction works was mainly contributed by private residential building projects.

The gross value of construction works performed at public sector sites increased by 25.9% in nominal terms to $12.4 billion in the first quarter of 2012. In real terms, it increased by 17%.

The gross value of construction works performed by main contractors at locations other than construction sites amounted to $13.4 billion in the first quarter of 2012, up by 9.9% in nominal terms over a year earlier. In real terms, it increased by 0.5%. Construction works at locations other than construction sites included minor new construction activities and decoration, repair and maintenance for buildings; and electrical equipment installation and maintenance works at locations other than construction sites.

Analysed by end-use group, residential building projects accounted for the largest share in the total gross value of construction works performed at construction sites in the first quarter of 2012. The gross value of construction works performed in respect of these projects amounted to $8.6 billion, up by 52.8% in nominal terms over a year earlier.

Transport projects constituted the second largest group of construction site works. The gross value of construction works performed in respect of these projects totalled $6.1 billion, up by 47.9% in nominal terms over a year earlier.

On a seasonally adjusted quarter-to-quarter basis, the total gross value of construction works performed by main contractors increased by 5.3% in nominal terms and 6.1% in real terms in the first quarter of 2012 compared with the fourth quarter of 2011.

Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time. The gross value of construction works performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor. However, sub-contractors' contribution to projects should have been included in the gross value of construction works performed by main contractors for whom they worked.

The classification of construction establishments follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.