BCIS tender price index

Citation

(2001), "BCIS tender price index", Property Management, Vol. 19 No. 4. https://doi.org/10.1108/pm.2001.11319dab.013

BCIS tender price index

BCIS tender price index

Tender prices outstripped inflation over the last year, reveals the Royal Institution of Chartered Surveyors' (RICS) latest Tender Price Index compiled by its Building Cost Information Service (BCIS). Tender prices rose by 6.5 per cent in the year to fourth quarter 2000, compared with general inflation which rose by 2.8 per cent. Materials costs rose 2.4 per cent in the past year while nationally agreed wage rates rose 5.9 per cent. New work output is expected to fall slightly this year, mainly due to a significant fall in orders in the latter part of 1999. A recovery in new work output is expected next year at around the level of its long term annual growth rate. It is anticipated that total construction output will increase this year and next. Peter Rumble, of BCIS, commented: "According to our survey of contractors, input cost pressures are expected to be the main driver behind tender price rises over the next six months. BCIS anticipate that tender prices will rise faster than inflation over the next two years as a result of increasing input costs and the increase in demand for new work in 2002".

For further information please contact Peter Rumble at BCIS Ltd, 12 Great George Street, Parliament Square, London SWIP 3AD. Tel: 020 7695 1500; Fax:’020 7695 1501.

The Indices and forecast are published in the BCIS Indices and Forecasts and Quarterly Review of Building Prices, priced £84.00 per issue each and £260 annual subscription and are available from BCIS, 12 Great George Street, Parliament Square, London SWIP 3AD.

Public sector housing maintenance prices stabilised between the second and third quarters of 2000, while input costs continued to rise, according to the latest issue of the BMI Quarterly Briefing of Maintenance Costs.

The Public Housing Output Price Index fell slightly in the third quarter 2000, although it had risen 4.9 per cent in the year from third quarter 1999 to 3rd quarter 2000.

Figure 1 Indices 1988-2000

Neither the BMI Input Indices nor the Retail Prices Index (RPI) rose to the same extent over the last year. The BMI index rose 3.7 per cent and the RPI 3.2 per cent (see Figure 1).

The BMI forecast is for maintenance costs generally to rise by 4.1 per cent over the next 12 months to third quarter 2001, and for the public sector housing output prices to increase by a slightly higher percentage. BMI Quarterly Briefing of Maintenance Costs is available as part of the BMI Subscription Service, or individually priced £100.00 p.a. or £75.00 per single issue, from BMI, 12 Great George Street, Parliament Square, London SWIP 3AD.