Stats SA has advised that Table 14 will be discontinued from January 2017.
Table 14 reflects the headline CPI index per region which has
been used since inception for the labour component of SAICE’s CPAP formulae. The implication for all participants in the civil engineering industry is that an alternative index has to be found to enable the continued calculation of escalations.
For each province, a headline CPI index is published monthly. Stats SA confirms that these indices will continue to be
published. Through consultation with Stats SA and engagement with the Department of Public Works [other organs of state were invited but did not participate],
the consensus is to use the aforementioned provincial indices. The indices for each province can found in Tables 3 to 11 of P0141 Additional Tables (note
that prior to January 2017, these tables were numbered 5 to 13).
SAFCEC members are therefore advised to consult with relevant authorities, including consultants and
the organs of state that they are contracted with, and advise them of this change.
The status quo for CPAP calculations up to and including December 2016
is maintained and continued on the basis of indices found in Table 14.
These indices can be found in “Table A” of the SAFCEC CPAF Excel
File (previously referred to as New Table A).
CPAP calculations from January 2017 onward are to be based on the
aforementioned provincial indices (Table 3 to 11 of P0141 - Additional Tables). Important: The base month indice for the labour component is also to be taken from Tables 3 to 11 respectively.
The modification of the relevant monthly formulae - i.e. using the
'new' base month indice - is not to affect any of the prior calculations (up to December 2016).
Should the averaging of indices be required
where such averaging includes a) months January 2017 onward,
and b) relevant indices prior to January 2017; such indices
should be taken from Table 3 to 11 respectively.
To assist SAFCEC members with implementing the change to the provincial indices, Table X will be added to the
SAFCEC CPAF Excel File in the course of February 2017. This file
will be made available for download to members in good standing from
the 2017 Contract
Price Adjustment Formula Indices file library. Table X will contain all provincial headline CPI indices
from 2008 onward, and tabulated per province.
We trust that the changeover to these new indices used for the labour component will be effortless,
and SAFCEC members are encouraged to contact our Contractual Affairs
support service us should any queries arise.