Provisions of services relating to the Collection of Key Prices statistics for Purchasing Power Parities Construction - AWARD

PPPs are the rates of currency conversion that equalize the purchasing power of different currencies by eliminating the differences in price levels between countries. In their simplest form, PPPs are simply price relatives that show the ratio of the prices in national currencies of the same good or service in different countries. PPPs are also calculated for product groups and for each of the various levels of aggregation up to and including GDP.

The objective of Eurostat and OECD comparisons of construction prices is to compare the purchasers' prices actually paid for comparable and representative buildings and civil engineering works across participating countries

Pricing a construction project involves collecting unit prices with which to value its components and summing the values obtained to arrive at a total price for the project. PPPs for construction are calculated with the total prices for a set of construction projects. The set covers three types of structures: residential buildings, non-residential buildings and civil engineering works.