Public Administrators' Maintenance Management Practices under the Impact of Material Price Fluctuations

Abstract

In the second half of 2020, there was a strong increase in building material prices on world markets, which continued in 2021. Given the unstable geopolitical and epidemiological circumstances, future price fluctuations are unknown. Construction projects are sensitive to such oscillations as contracts and plans are concluded at a time when price changes cannot be predicted with certainty. Given the degree of environmental construction, maintenance projects of existing buildings are becoming increasingly important. Public-funded institution maintenance projects under regional and local self-governments are particularly at risk. Public administrators make maintenance decisions based on existing priority systems and available budgets, which are already limited and pressured due to rising material prices. To mitigate the disturbances, this paper aims to analyze fluctuations in the market of frequently used maintenance materials and provide support to public administrators, i.e., decision-makers, in the form of maintenance management recommendations, in the context of activating the price increases risk. The research consists of two parts, a review of the theoretical background and the processing of material cost data. From the available literature, insight was gained into the current way of planning, budgeting, and way of maintenance performing of public institutions in the Republic of Croatia. The problem of fluctuation in construction material prices and its impact on maintenance was recognized. Often used maintenance materials prices data were collected and analyzed, the resulting changes were graphically and numerically presented, and the problems these changes cause within the maintenance process were identified. Finally, recommendations were made to mitigate the identified disorders that public administrators will be able to apply.