How to structure this clause
- Split the contract into four categories. Shipbuilding, ship parts and refit, port equipment, and port equipment parts each have a different cost structure. Price each separately.
- Index new shipbuilding directly. Use BLS PCU336611336611 for ships. The boat-building series PCU336612336612 is a different index; using it matters when vessel size affects the contract.
- Index port cranes to the proxy, and say so. Use PCU333923333923 for cranes and loaders, and state in the contract that it measures overhead lifting equipment generally, not port cargo equipment specifically.
- Build the parts categories from an input composite. No output index tracks marine parts, refit work, or port-equipment parts. Price these from a weighted composite of engines, steel, electronics, and maintenance labor.
- Track refit labor on its own line. Refit and maintenance labor behaves differently from new-build production labor. Give it a separate wage benchmark if the contract covers both.
Four categories, not one
A shipyard building a new vessel, a shipyard doing repair and refit work, a port buying a new crane, and a port replacing crane parts have four different cost structures. Price each one separately.
Shipbuilding: new vessels
Use the BLS Ship Building and Repairing PPI, series PCU336611336611. It covers ships specifically. Boat building is a separate index, PCU336612336612. Using the wrong one matters if vessel size affects the contract.
| Component | Benchmark | Starting weight |
|---|---|---|
| Shipbuilding steel | PCU331110331110 | 30% |
| Marine engines and propulsion | PCU333618333618 | 25% |
| Navigation and communication systems | PCU334511334511 (proxy) | 15% |
| Shipyard labor | Regional shipbuilding wage index | 20% |
| Energy and logistics | Diesel and freight composite | 10% |
Shipbuilding: parts and refit
No output index tracks marine parts or refit work. Price this side from the input composite directly.
| Component | Benchmark | Starting weight |
|---|---|---|
| Engines, pumps, and compressors | PCU333618333618 | 40% |
| Steel sections and hull panels | PCU331110331110 | 35% |
| Control panels and electronics | PCU334511334511 (proxy) | 15% |
| Maintenance and refit labor | Regional marine trades wage index | 10% |
Refit labor behaves differently from new-build production labor. Track it separately if the contract covers both.
Port equipment: cranes and loaders
The closest match is the BLS Overhead Traveling Crane, Hoist, and Monorail System Manufacturing PPI, series PCU333923333923. It covers overhead lifting equipment across warehouses, factories, and shipyards generally. It is not a dedicated port-crane index. Say so in the contract rather than presenting it as an exact benchmark.
| Component | Benchmark | Starting weight |
|---|---|---|
| Structural steel | PCU331110331110 | 30% |
| Hydraulics and drive systems | Fluid power / hydraulics manufacturing index (confirm current code at bls.gov/ppi) | 25% |
| Electrical control systems | Industrial control equipment index (confirm current code at bls.gov/ppi) | 15% |
| Skilled assembly labor | Regional industrial equipment wage index | 20% |
| Freight and commissioning | Freight and site logistics composite | 10% |
Port equipment: replacement parts
Same logic as ship parts: no output index exists. Use an input composite instead.
| Component | Benchmark | Starting weight |
|---|---|---|
| Gearboxes and hydraulics | Fluid power / hydraulics manufacturing index (confirm current code) | 30% |
| Electronics and sensors | PCU334511334511 (proxy) | 25% |
| Structural steel | PCU331110331110 | 25% |
| Maintenance labor | Regional industrial maintenance wage index | 20% |
Say what the proxy actually measures
Never present the crane manufacturing index as if it were built for port cargo equipment specifically. PCU333923333923 is real and usable, but it measures a broader category of lifting equipment. Naming that clearly in the contract avoids a dispute later over whether the index actually matches what was bought.