Citation
(2001), "Economies of scale", Property Management, Vol. 19 No. 2. https://doi.org/10.1108/pm.2001.11319bab.012
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Economies of scale
Economies of scale
Larger building projects offer considerable economies of scale, according to the BCIS Study of Pricing Adjustment Factors, published today in the BCIS Surveys of Tender Prices.
The study shows that pricing levels fall quite sharply between a £100,000 contract and a £1 million contract, with the latter being some 12 per cent lower than the former. Economies of scale become less pronounced as the size of contract increases further, with a £5 million project likely to have pricing levels some 9 per cent below that of a £1 million project.
Tbe BCIS Study of Pricing Adjustment Factors shows the pricing levels of a range of factors including:
- •
location;
- •
procurement;
- •
route;
- •
number of storeys;
- •
size of contract;
- •
type of work; and
- •
building type.
The BCIS Study of Pricing Adjustment Factors is part of the BCIS Surveys of Tender Prices which also includes an update of the BCIS Tender Price Index, the Contract Percentages Study, the Study of Average £/m2 Prices and Functional Prices for a whole range of building types. Available individually at £80.00, on subscription at £250.00 p.a. for four issues, or as part of the BCIS Bulletin Service. The Building Cost Information Service, 12 Great George Street, Parliament Square, London SWIP 3AD.