Own Account Construction

Definition

Own Account Construction. Own-account new construction refers to construction activities performed by businesses, governments, or persons for themselves rather than by purchasing from construction businesses.

Beginning with the 1997 benchmark I-O accounts, own-account new construction is treated as being produced by the industries in which the construction occurs and then “purchased” in final uses as investment. In the 1997 standard make and use tables, own-account new construction, including output and all inputs, is shown as a secondary product of the industry in which the activity occurs. Previously, own-account construction was reassigned to the new-construction industry and included as part of its primary production. In cases where the general contractor for a new housing unit intends to be an owner- occupant, the resulting new construction is now shown in the owner- occupied dwellings industry. For government, it is now shown in the general government industry.

Beginning with the 1997 standard and supplementary make and use tables, own-account maintenance and repair construction is no longer treated as output. Previously, own-account maintenance and repair activities were included in the maintenance and repair construction industry and then purchased by the industry producing those services. This change is intended to facilitate comparisons of data from the I-O accounts with other statistical data on industries.