Maintenance issues

Value for money

A constant threat to planned maintenance is short-term revenue budget pressures. Planned maintenance funding, particularly planned preventative maintenance funding is easily deferred or cut. The finance department may find it difficult to justify spending on something that is not causing a problem or costing money, in spite of asset management policies. A well-structured maintenance plan that can be adapted to show the likely future cost implications of deferred or cut maintenance expenditure may go some way to balancing funding in favour of prudent asset management.

One of the key strengths of a planned maintenance regime is that maintenance stops disrepair and saves higher future costs. The skill of the maintenance team is in providing evidence.

Tax and grant allowances

Tax relief may be available in the form of VAT allowances for certain planned maintenance activities, such as:

• repair and maintenance of equipment designed solely for use by disabled people;
• certain building alterations for use by disabled people;
• capital allowances may be available for plant and machinery;
• green technology measures, with a low environmental impact, may attract 100% capital allowance;
• cleaning of contaminated land which includes asbestos removal may attract a 150% tax deduction;
• refurbishment and improvements generally attract tax at the full rate, however, if part of the work is maintenance works, that part which is maintenance may attract tax relief;
• enhanced capital allowances may be available for approved components which meet specific criteria for energy and water saving - see the enhanced capital allowances website.

Taxation issues may best be considered with specialist advice.

Pricing maintenance

For some planned maintenance activities an idea of cost can be gained from price books dealing with new works. However, most maintenance work includes an element of removal, or repair, as well as installing new components. Specialist pricing books are available as a guide to estimating for this work, such as:

• BCIS Building Maintenance Price Book; and
• M3 NHF Schedule of Rates, provides a cost benchmark for social landlords.