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Plumbing Labour
The Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales
(JIB-PMES), in their Promulgation No 160 dated 20 July 2009, announced changes to the
Holiday Pay Scheme with effect from 24 August 2009. From this date, the Scheme will fund
Public Holidays as well as Annual Holidays and the gross weekly stamp values are:
September
Technical Plumber £62.90
2009
Advanced Plumber £56.60
(Trained) Plumber £48.50
There will be 60 stamps in the stamping year. Holiday pay must be topped up so that one day's
holiday pay is equivalent to one day's average earnings.
This change is included in the Indices from and including September 2009.
June 2009 Building, Glazing and Civil Engineering Labour Indices - Wages and Allowances
September
Plumbing Labour Index Wage Award
2008
General Information
History
The Price Adjustment Formulae were first set up in 1973 under the auspices of the National Economic
Development Office and are still familiarly referred to as 'the NEDO Indices'. The first Working Groups were
chaired by Mr J W Baxter and Mr J G Osborne whose names are still linked with the Civil Engineering Indices
and the Building Indices, respectively.
The Formulae
Price Adjustment Formulae calculate the increase, or decrease, in contractors' costs over any period to the
nearest month using indices published in this Monthly Bulletin. The original formulae are contained within the
Users Guide (see below). A simplified all embracing formula was introduced in April 2001 (see pages 3 and
4).
The Working Group, which has a wide representation from all sides of the construction industry, is responsible
for deciding issues arising on the compilation of the indices and for reviewing the indices from time to time as
appropriate.
BCIS provides the Technical Secretariat to the Working Group on Indices and is responsible for compiling and
maintaining the Indices.
Publication of Indices
The Price Adjustment Formulae Indices are usually published at noon on the third Monday of each month.
The Indices
The Price Adjustment Formulae Online service contains Series 3 (base date 1990=100) and Series 2 (base date
1970=100 or 1976=100) Indices. The original Series 1 Indices ceased with the December 1981 values.
Index numbers are published as provisional in the first instance. Provisional values are not changed until firm
values are substituted.
For the Building Formula, each Work Category index is compiled as a weighted average of labour, plant and
material indices. The component labour and plant indices are also published separately.
For the Specialist and Civil Engineering Formulae, separate labour and material indices are published.
No allowance for Landfill Tax is included in the indices. The Tax should be dealt with outside the provisions
of the Price Adjustment Formulae.
User Guide
The Users Guide fully explains how the Series 3 Indices are compiled and gives the original formulae used in
applying the Indices together with worked examples. It contains advice on application and procedures for
implementing Price Adjustment Formulae Indices.
It supersedes all previous Guides (originally in three volumes) and has particular relevance to the 1990 Series
of Indices containing detailed descriptions of their make-up, etc.
Together with this Monthly Bulletin, the Guide explains in 64 pages everything necessary to set up Formulae
recovery of fluctuations on all types of Building, Specialist and Civil Engineering Contracts, and even includes
completed example forms for interim valuations, etc. This Guide is essential for all existing and prospective
users of Price Adjustment Formulae Indices and is strongly recommended for all libraries and reference points
connected with the Construction Industry.
It is obtainable from The Stationery Office for £40 by quoting ISBN 0 11 752951 6. Telephone orders 0870
600 5522.
Enquiries
Generally
This simplified formula, introduced in April 2001, may be used for any construction work and can be applied
to any of the indices. Where more than one index is required, the indices are weighted together as shown in the
worked example below. Any number of indices can be used and they may have different base dates. (The
original formulae are still available. See 'Users Guide' on page 2.)
Definitions
ADJUSTMENT PERIOD: The period in which the work to be adjusted was carried out.
BASE VALUE OF WORK: The value of work executed in the adjustment period, on or off site, and priced at
base month level prices excluding any work or any part of the contract not subject to price adjustment.
BASE MONTH: The month which equates to the level at which the work to be adjusted was priced.
ADJUSTMENT MONTH: The month during which the middle day of the adjustment period occurred (if an
even number of days, ignore the last day).
The Formula
Where:
VA = the adjusted value of work
VB = the base value of work
IA = the index number for the adjustment month
IB = the index number for the base month
Work Details
Details Reinforced concrete
Base Month
A B C D
Adjustment Month
A B C D
TOTAL 109.120
Now calculate the adjusted value of the work (VA in the formula):
VA = VB x (IA / IB)
= £27,500 x (109.1 / 100)
= £30,003
Index Categories
2/ 4 General Piling
2/ 6 Concrete
2/ 7 Reinforcement
2/26 Ironmongery
2/37 Insulation
2/49 Leadwork
App/5 Scaffolding
App/7 Plant
3/11 Stonework
3/41 Glazing
3/50 Insulation
3/54 Fencing
App/3 Plant
90/ 2 Plant and Road Vehicles Operatives and fuel are not included
90/ 3 Aggregates
90/ 5 Cements
90/12 Timber
Base: June 1990 = 100 Last Updated: 19 October 2009
70/ 3 Aggregates
70/ 5 Cements
Metal Sections