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21 SEP 2018

Facilities Management Costs on the Rise

The costs of maintenance, cleaning, and energy efficiency have all risen faster than inflation over the past year (from Q2 2017 to Q2 2018).

The BCIS Maintenance Cost Index, which represents the cost of fabric and services maintenance and redecorations, has risen 4.4% in the year to Q2 2018. Meanwhile, retail prices rose 3.1% over the same period (based on the quarterly Retail Prices Index (RPI) calculated by BCIS, which is based on the monthly RPI published by ONS).

Cleaning costs, as measured by the BCIS Cleaning Cost Index, rose 4.9% and energy costs rose by 7.5% over the period.

Both maintenance and cleaning costs have been affected by increased labour costs. Cleaning costs particularly reflect the impact of the increases in the National Living Wage on low paid workers.

The BCIS Energy Cost Index, which is a weighted index of fuels, reflects the recovery in oil prices from the falls in 2014 to 2016.

Facilities management costs – Maintenance, cleaning and energy-BCIS
Source: BCIS

The BCIS Facilities Management Indices are published in the BCIS Building Running Costs Online service and are forecast for five years.

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