There are strong indications that lack of comparability of capital goods in different countries was an important source of weakness in the past ICP round. Methodological study was needed to deal with the following broad questions: Given the nature of the construction sector and the inherent difficulties in construction price comparisons what improvements can be made? What is the basis and level of comparison that is appropriate for the sector? How can quality and level-of-service differences among countries be incorporated in these comparisons?
The Basket of Construction Components (BOCC) approach was introduced in the 2003-2006 round by the Global Office for construction sector comparisons. It measures relative prices at the level of the construction component. The construction component can be thought of as an aggregation of several construction work items, including the material put in place, labor and equipment, and any consumables required. The price comparisons are performed using 3 baskets - residential, non-residential, and civil works. Each basket is broken down into construction systems. Under each system a set of construction components are identified and defined. The approach was endorsed by the ICP Technical Advisory Group as a much simpler price comparison tool compared to the current practice and is expected to reduce resource and expertise requirements in the price collection process in the construction sector.