Manual on Statistics of International Trade in Services

particular case where the construction enterprise 
purchases goods and services in its home economy, 
these still constitute part of the value of construction 
services. However, because they have not been 
purchased in the host economy, they are excluded from 

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goods and services purchased in the host economy
.
50
Depending on the method of data collection used, it may 
not be possible to identify separately the goods 
purchased in the home economy and the host economy; 
for practical purposes, the compiler may need to 
estimate a breakdown or otherwise attribute all goods 
purchased to either the host or the home economy of the 
construction enterprise. 
3.96. It may not be possible to identify the purchase of 
goods and services separately from labour costs; in this 
case the compiler will need to estimate a breakdown or 
alternatively allocate all costs either as goods and 
services or as labour costs. An example of the 
measurement of 
construction services
is shown in box 3.
3.97. Projects carried out by subsidiaries, branches or 
associates of non-resident enterprises (direct investors) 
and certain site offices (see para. 3.7 above) are 
excluded here. However, the activities of branches and 
subsidiaries are included in the coverage of foreign 
affiliates (see chapter IV below) because such projects 
are regarded as part of the production of the host 
economy. The present 
Manual
recommends that the 
coverage of enterprises providing 
construction services
be the same as that of BPM5. That is, compilers should 
ensure that the construction services data compiled 
according to the present 
Manual
relate to the same group 
of enterprises that are deemed to provide construction 
services in the balance of payments statistics. 
3.98. 
Construction services 
covers all goods and 
services that form an integral part of construction 
contracts, including site preparation work, construction 
work for buildings, construction work for civil 
engineering, installation and assembly of machinery, and 
other construction services, such as renting services of 
construction or demolition equipment with operator or 
exterior cleaning work of buildings. Also included are 
construction repairs. 
50
Balance of payments compilers should note that in 
merchandise trade statistics, the value of goods imported into 
the host economy for use on the construction site will be 
included in merchandise imports under the general and special 
trade systems. Where goods are purchased by the construction 
enterprise in its home economy and shipped to the 
construction site, an adjustment must be made to the 
merchandise trade statistics to exclude the value of any such 
goods from the balance of payments goods component. If the 
goods are purchased in the host economy, no such adjustment 
is necessary.