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Maintenance costs to increase

The cost of maintenance will increase over the next two years, according to the Building Cost Information Service (BCIS).

The BCIS, part of the Royal Institution of Chartered Surveyors (RICS), said demand from the repair and maintenance sector would grow over the period, causing prices for maintenance to increase by 2 per cent this year, and 3 per cent next year, in line with an increase in costs.

In the BCIS Briefing: Maintenance, Cleaning And Energy February 2016, BCIS said the rise was mainly because wage awards in all sectors were rising faster than the rate of inflation. Materials costs have fallen 1.7 per cent over the past six months, but they are forecast to recover over the next two years as oil prices stabilise, with materials closely linked to energy costs starting to rise in price once again.

Construction repair and maintenance (R&M) output has fallen for the past five successive quarters, after reaching a peak in the third quarter of 2014, said the BCIS.

Construction repair and maintenance output was £11.8 billion in the final quarter of last year, down from £12.1 billion in the third quarter of 2014.

BCIS forecasts that this year output would rise slightly in the private sector, remaining constant in the public sector, and increasing 4 per cent in the infrastructure sector.

– See more at: http://www.fm-world.co.uk/news/fm-industry-news/maintenance-costs-to-increase/#sthash.oN9dbX8J.dpuf

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