Maintenance costs

Citation

(1999), "Maintenance costs", Property Management, Vol. 17 No. 1. https://doi.org/10.1108/pm.1999.11317aab.026

Maintenance costs

Maintenance costs

Keywords Maintenance, Statistics

Maintenance cost inflation continues to be held back by materials prices. However, wage awards already agreed for 1998 and 1999 will tend to drive up costs over the next year (see Figure 4).

The BMI All-in Maintenance Cost Index rose 2.6 per cent in the year to 2nd quarter 1998, while retail prices rose 4.2 per cent.

The Maintenance Materials Cost Index fell by just under 1 per cent in the year to 2nd quarter 1998, which has held maintenance cost rises in all sectors to below the rate of general inflation.

The BMI forecast is for maintenance costs to rise 5 per cent in the year to 2nd quarter 1999 (see Table III).

Figure 4.Maintenance cost inflation (annual percentage change)

Table III BMI maintenance cost forcast

Employment sector	Per cent change 2Q99 compared with 2Q98
Health service	+4.4
Local authority	+3.0
Private contractors	+7.7
All-in	+5.0

The main pressure on costs will come from the private sector where wage awards have already been settled at well above the rate of inflation for most trades.

Materials prices have been steady over the past two years with a strong pound keeping down the cost of imports. The fall in materials prices over the past year results from a slight fall in paint prices and significant falls in copper- based products for plumbing and electrical work, which are affected by prices on the international commodity markets.

* BMI Quarterly Cost Briefing of Building Maintenance Costs. Available as part of the BMI subscription service, or individually priced £65.00 each, from BMI, 12 Great George Street, Parliament Square, London SW1P 3AD.