I have a construction project, and I am using the IMPLAN 528-2 digit Naics aggregation. In the support articles, it suggests that the event for the construction industry should include both the building costs and soft costs (professional services) - summed as the entry in "construction." I would like to confirm that this is correct. I know the specific hard vs. soft costs, and could separate the building costs into a construction event and soft costs into professional services if that is more appropriate. Advice? Thanks!
Clarification on Construction Entries
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Official comment
Hello Kurt!
That is correct. The Output value for a construction Industry should be the cost of the structure and only the structure, which would include building hard and soft costs. The soft costs for a construction Industry will be captured as Commodity Purchases in the Industry Spending Pattern (meaning that they are included in the Industry Output value as Intermediate Inputs). This Industry Spending Pattern can be edited to reflect your known soft costs purchases when utilizing an Industry Impact Analysis (Detailed) Event Type as described in our support article Editing Spending Patterns. You can also model these separately from the construction Industry by adding separate Events to capture these soft costs, but a couple things to note about that process:
- This will create Direct Effects in the Industries you are impacting for the soft costs. When analyzing a construction Industry by default, these would be captured as Direct Intermediate Inputs to the construction Industry, and Indirect Effects in the Industries that produce the services.
- If you wish to model these soft costs separately, you should be sure to reduce the Output and Intermediate Inputs in the construction Industry to account for the fact that they are included as standalone Events. Additionally, you would want to be sure to remove the Commodity percentages for these soft costs from the construction Industry Spending Pattern.
Hope this helps! Please feel free to respond with any additional questions that you may have.
Best,
Michael Nealy
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