The Highways Term Maintenance Association (HTMA) is calling for a price index review on long-term maintenance contracts in order to reflect ‘true inflation’ in the highways industry.
It believes some of the price indexes currently used to determine cost increases, such as the CPI (Consumer Price Index) and RPI (Retail Price Index), do not adequately recover increases in the maintenance sector, despite mirroring general inflation in the economy.
‘True inflation in our industry is very much different and very much higher than CPI and PRI and this can be proved by a detailed historical analysis,’ said HTMA chairman, Mike Notman.
One alternative is a monthly version of the most commonly-accepted industry index, Baxter, which is currently produced on an annual basis.
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