A main contractor is one who enters into a contract directly with a property developer or the client party of a project, as distinct from a subcontractor who obtains the job from another contractor.

A construction site refers to a demarcated locality where one or more major stages or processes of construction works are being carried on.

Construction works at locations other than sites refers to those construction work performed at minor new construction work locations and erected buildings and structures.

A real estate development project is concerned with the development of land and/or redevelopment of existing premises into a new form of property for sale or lease. A development project is not regarded as active if the works that have been initiated relate only to pre-construction preparation.

An establishment is defined as an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. In the context of construction, the requirement of a single physical location is relaxed for practical purposes. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.

For architectural, surveying and project engineering services :

Compensation of employees 
= wages and salaries + payments in kind and employer's social security expenditure

Gross additions to fixed assets
= acquisitions of fixed assets - proceeds from disposal of fixed assets

Gross output 
= service income + other incomes (excluding interest income)

Gross surplus 
= value added + interest income - interest payments - compensation of employees

Miscellaneous operating expenses
= rent, rates and government rent for land and buildings + interest payments + other operating expenses

Number of persons directly engaged 
= number of working proprietors and active business partners + number of direct employees

Value added
= gross output - consumption of sundry supplies; fuels, electricity and water; and maintenance services - payments for commission work - rent, rates and government rent for land and buildings - other operating expenses (excluding interest payments)

For building and civil engineering construction industry :

Compensation of employees and payments to labour-only sub-contractors
= remunerations to direct employees (comprising wages and salaries to operatives and other employees; and payments in kind and employer's social security expenditure) + payments to labour-only sub-contractors

Gross additions to fixed assets
= acquisitions of fixed assets - proceeds from disposal of fixed assets

Gross output 
= gross value of construction works performed + other incomes (excluding interest income)

Gross surplus 
= value added + interest income - interest payments - compensation of employees and payments to labour-only sub-contractors

Gross value of construction works performed 
= construction works performed as main contractor at (i) construction sites; (ii) other minor new construction works locations; and (iii) erected buildings and structures + construction works performed as sub-contractor at (i) construction sites; (ii) other minor new construction works locations; and (iii) erected buildings and structures

Miscellaneous operating expenses
= rent, rates and government rent for land and buildings + rentals for hiring machinery and equipment + interest payments + other operating expenses

Number of persons directly engaged 
= number of working proprietors, active partners and unpaid family workers + number of direct employees, comprising operatives and other employees

Other business receipts 
= interest income + other incomes

Value added
= gross output - value of sub-contract works rendered by fee sub-contractors - consumption of materials and supplies; fuels, electricity and water; and maintenance services - rent, rates and government rent for land and buildings - rentals for hiring machinery and equipment - other operating expenses (excluding interest payments)

For real estate development, leasing, brokerage and maintenance management services :

Compensation of employees 
= wages and salaries + payments in kind and employer's social security expenditure

Gross additions to fixed assets
= acquisitions of fixed assets - proceeds from disposal of fixed assets

Gross margin of real estate development projects 
= value accrued to project - total project expenses + interest payments to finance real estate development projects

Gross output 
= gross margin of real estate development projects + service and rental income + other incomes (excluding interest income)

Gross surplus 
= value added + interest income - interest payments (including interest paid to finance the real estate development projects and other activities) - compensation of employees

Miscellaneous operating expenses
= rent, rates and government rent for land and buildings + interest payments apart from those for financing real estate development projects + estate management expenses + other operating expenses

Number of persons directly engaged 
= number of working proprietors, active business partners and unpaid family workers + number of direct employees

Other business receipts 
= interest income + other incomes

Total project expenses
= payments to contractors + building materials and fittings supplied outside the contract price + architectural design and technical consultancy fees + interest payments to finance the real estate development projects + other project expenses

Value accrued to project during reporting period 
= { [ (P₁ - L₁) + (P₂ - L₂) ] / 2 } x (C₂ - C₁), where P = market value of the property as if completed; L = market value of the underlying land lot; C = percentage of project completion; Subscript 1 = the beginning of reporting period; Subscript 2 = the end of the reporting period.

Value added
= gross output - consumption of sundry supplies; fuels, electricity and water; and maintenance services - rent, rates and government rent for land and buildings - estate management expenses - other operating expenses (excluding interest payments)