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News & opinion

24 MAY 2019

BCIS specialist purpose indices

BCIS has been developing price and cost indices for over 50 years; over this time we have developed indices in response to both our requirements and in requests from specialist sectors.

Examples include:

  1. Market conditions factor indices.
  2. Cleaning cost index.
  3. Plant and equipment indices.

Market conditions factor indices

Construction price inflation is driven by both cost push, changes in input costs and demand pull, changes in the amount of work being commissioned and the availability of contractors to carry it out.
The market conditions indices are an attempt to identify which of these is affecting prices in any given period. They are calculated by dividing a tender price index by a cost index so that when costs are rising faster than prices the index falls and when prices are rising faster than costs the index rises.

BCIS produces market conditions factor indices for:

  • building
  • civil engineering
  • roads construction

Cleaning cost index

Produced in response to requests from facilities managers to help track inflation in cleaning contracts. It is used both for planning and budgeting and for contract adjustment.

The cleaning cost indices give a general assessment of changes in the cost to the contractor of carrying out maintenance work and are based on the cost of labour, materials and plant. The labour element, is based on local authority cleaners' wage agreements, which in recent years have been driven by the national living wage.

Cleaning of occupied buildings generally costs more than maintenance.

Plant and equipment indices

Developed at the request of the RICS plant and equipment valuers these indices track the cost of replacing plant and equipment for use in valuations where the initial cost is known.

There are 94 indices in total. For some categories there are separate indices for UK manufacture, and EU and non-EU imports.

BCIS also produce bespoke indices for clients to measure inflation at the sector, company or project level. For further details contact David Crosthwaite.