Maintenance cost inflation set to rise

Citation

(1998), "Maintenance cost inflation set to rise", Property Management, Vol. 16 No. 2. https://doi.org/10.1108/pm.1998.11316bab.002

Maintenance cost inflation set to rise

Maintenance cost inflation set to rise

Keywords Building maintenance, Costs, Inflation

The annual rate of maintenance cost inflation is forecast to rise above the level of general inflation over the next year, according to the latest issue of the BMI Quarterly Briefing of Maintenance Costs (BMI Quarterly Briefing of Maintenance Costs ­ Issue 59, price £60 per single issue, annual subscription £150 for Chartered Surveyors and £190 for others (available from BMI, 12 Great George Street, Parliament Square, London SW1P 3AD see Figure 2).

BMI collects and analyses data on property occupancy costs from subscribers. These are published as individual data sheets, as well as forming the basis of special reports. BMI also responds to the emergence of new and important topics and to changing economic situations by publishing special reports for subscribers on a wide variety of statistical and technical subjects.

With material prices expected to rise and wage awards in this sector being settled at well above the prevailing rate of retail price inflation, pressure on contractors and direct labour organisations will result in rising costs.

The BMI forecast is for maintenance costs generally to rise 4.6 per cent in the year to the 3rd quarter 1998. The forecast for the individual employment sectors is shown in Table I.

Figure 2 Maintenance cost inflation (annual percentage change)

BMI is a subscription based service for professionals concerned with cost effective property occupancy and facilities management, and is a service of the RICS Building Cost Information Service Ltd.

For further information, contact BMI, 12 Great George Street, Parliament Square, London SW1P 3AD. Tel: 0171 222 7000.