The dread is more a function of the financial impact on our budgets than any sense that we have been betrayed by a particular piece of equipment! Avoiding the budget surprise entails another list: A Capital Reserve Schedule or Capital Replacement Schedule is a tool used to plan/justify the incremental collection of sufficient funds to support anticipated large-scale replacement projects. And with your Seasonal Inspection lists, you are on your way.
Start with your inspection schedules.
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High priority repairs include life safety and building envelope. Once water gets into your building, the costs mount quickly. |
Everything wears out at some point, so everything should be on the list: roof, walls, windows, carpet, ceiling tiles, tables, chairs, computers, etceteras. Build one master list so you'll know everything is covered. If you want to split things and allocate the expenses to different budgets (capital reserves, maintenance, grounds keeping...) that's fine, but a good comprehensive list will reduce the chances of something slipping through the cracks.
Identify the year the item was installed. This can be the time of construction, a recent - or not so recent - remodeling, or a recent repair. It is the point from which we will measure life expectancy.
Determine each item's planned life expectancy. Sources for life expectancies include your service provider, construction industry publications, building maintenance reference manuals, and state agency guidelines among others (your architect). Add this to the installation date and you have an anticipated year for replacement.
Calculate the anticipated replacement date by adding the life expectancy to the installation date.
Obtain a likely cost of replacement for the various items. These can be derived from the same sources you used for life expectancy.
Escalate that cost to the anticipated replacement year. Remember, you want the future cost of replacement to put into your budget.
Analyze your schedule.
If your inspections have shown a piece of equipment or a particular finish to be problematic, adjust the life expectancy down. If an item is showing no signs of age, increase the life expectancy. There is plenty of subtlety involved here and the more expert you are in any of these systems the more precise your analysis will be.
There are limits however. Even the most seasoned observer is making approximations. Fortunately, exact certitude is an unnecessary goal. We are looking for the highest probabilities in order to build a sufficient reserve fund in adequate time to address significant repairs. So, if you are uncertain as to the exact condition, go with the average.
Plan your major repairs.
Many of the scheduled items are more effectively replaced as a group. For example if you are working on tuck pointing brick on a two story building, you might also replace sealants, repair windows and other items that require the same scaffolding or lifts to access the work. You will save money by combining related repairs into a single project rather than stretching them out over subsequent years. You will also minimize the impact of the repair operations on your staff and on your customers.
Prioritize the expenses. If you can't fix everything now, take care of the critical items first. Anything to do with life safety is first priority. Keeping water out should be next. Mechanical upgrades should rate fairly high: poor performing equipment wastes energy, reduces comfort and requires more maintenance.
Let your board and committees understand the magnitude of these endeavors. It makes the planning and budgeting process easier when you have a long range view of anticipated expenses. It also helps the funding of repairs. No one likes surprises and advanced planning goes a long way when you ask for money. This is true of taxpayers, of municipal councils, of granting agencies and private foundations.
Let the public know you are being diligent in your efforts to maintain the facility. They will have a better appreciation for where the money goes and the diligence with which you are maintaining the facility.
Getting started is always tough.
To help ease you into the process we offer a simple starter guide. Give it a try. CLICK HERE for a printable PDF.
