• Foreword
• Executive summary
• The database
• The sample structure
• National average component service charges
• National average component service charges by percentage
• Total service charge by building location and by building size
• Component service charges by building location
• Service charge trends 1983-2006
• Looking to the future
• Definition of terms
• Geographical areas
• Data contributors
• Contact us
• Download OSCAR PDF

Definition of terms

Cost categories

The Royal Institution of Chartered Surveyors Service Charge Code came into effect on 1 April 2007 and incorporates 22 standard cost categories. From discussions with our clients and other managing agents, it would appear that the Code has been fully embraced and there should therefore be greater uniformity in the way that service charges are presented across the industry.

The data presented within this year's Office OSCAR is for the year ending December 2006. We have been working to bring Office OSCAR in line with the Code and this year have separately itemised new Electricity and Gas cost headings from within our previous Energy category to provide more detailed analysis. Next year's publication will be the first that encompasses data during the period the Code is in operation. We shall introduce further refinements to bring Office OSCAR in line with the Code at that time. We detail below for ease of reference the items included within each category:

Management

1. Management

• Management fees
• Accounting and audit fees
  NB - this currently incorporates the 'Accounting Fees' cost category as defined within the RICS Service Charge Code

2. Site Management Resources

• FM Staff /Concierge / Receptionist costs
• Site accommodation (rent / service charge / rates)
• Office costs (telephones / stationery / petty cash)
• Help desk / call centre / information centre
• Landlord's health, safety and environmental risk assessments,audits and reviews
  NB - this currently incorporates the 'Health, Safety and Environmental' cost category as defined within the RICS Service Charge Code

Utilities

3. Electricity

• Electricity
• Fuel (standby electrical power)
• Electricity procurement / consultancy

4. Gas

• Gas and heating fuel oil
• Gas / fuel oil procurement / consultancy
  NB - this currently incorporates the 'Fuel Oil (Heating)' cost category as defined within the RICS Service Charge Code

5. Water

• Water and sewerage charges
• Water consultancy

Soft Services

6. Security

• Security guarding and receptionists
• Security systems
• Post room and mail distribution services

7. Cleaning & Environmental

• Internal / external / window cleaning
• Hygiene services / toiletries
• Carpets / mats hire
• Waste management
• Pest control
• Floral displays and landscaping
• Suspended access equipment, maintenance and repairs
  NB - this currently incorporates the 'Suspended Access Equipment' cost category as defined within the RICS Service Charge Code

Hard Services

8. M&E Services

• M&E maintenance and repairs
• M&E inspections and consultancy
• Life safety systems maintenance and repairs
• Life safety systems inspections and consultancy

9. Lifts & Escalators

• Lift maintenance and repairs
• Lift inspections and consultancy
• Escalator maintenance and repairs
• Escalator inspections and consultancy

10. Fabric Repairs & Maintenance

• Internal / external repairs and maintenance
• Re-decoration

Other terms

Exceptional Expenditure

• Project works
• Refurbishments and major repairs
• Draw-down from forward funding accounts
• Sinking /replacement / reserve funds
• Depreciation /repayment charges
• Estate / external service charges

Base-level Service Charge

• The full service charge costs of running a building excluding exceptional expenditure. This provides a measure of the cost of providing routine operational services to a building.

Full Service Charge Costs

• The full expenditure running through a service charge account, including exceptional expenditure, but excluding any interest receipts and insurance costs.

Air-Conditioned

• A building in which cooling and heating are provided in the majority of the lettable space via the landlord's central plant installation.

Non Air-Conditioned

• A building in which only the heating is provided in the majority of lettable space via the landlord's central plant installation. Tenant's supplemental air-conditioning plant is disregarded in this context.