2. Do you have a formal capital planning
process?
Source: 2004 SchoolDude Capital Planning Survey. 737 educational professional respondents from the US, Canada, and Australia
3. When do you do most of your capital
planning?
Source: 2004 SchoolDude Capital Planning Survey. 737 educational professional respondents from the US, Canada, and Australia
4. How do you gather your deficiencies?
Source: 2004 SchoolDude Capital Planning Survey. 737 educational professional respondents from the US, Canada, and Australia
5. Why don’t you have a formal
budgeting process?
Source: 2004 SchoolDude Capital Planning Survey. 737 educational professional respondents from the US, Canada, and Australia
6. Is your board out of touch?
Source: 2004 SchoolDude Capital Planning Survey. 737 educational professional respondents from the US, Canada, and Australia
7. Why is facility planning
important?
• All buildings age, deteriorate, and weaken - little maintenance or noAll buildings age, deteriorate, and weaken - little maintenance or no
proactive maintenance speeds this processproactive maintenance speeds this process
• If no reliable preventive maintenance process is in place, sustaining aIf no reliable preventive maintenance process is in place, sustaining a
building encounters budgetary, personnel, administrative, and evenbuilding encounters budgetary, personnel, administrative, and even
personal drains due to stress, not to mention the occasional legal burdenspersonal drains due to stress, not to mention the occasional legal burdens
• Lack of funding is often cited as an issue, yet when building componentsLack of funding is often cited as an issue, yet when building components
fail before their expected life expectancies are completed or causefail before their expected life expectancies are completed or cause
additional issues (e.g., mold, safety issues or violations, emergencyadditional issues (e.g., mold, safety issues or violations, emergency
repairs) to arise, thereby multiplying cost burdensrepairs) to arise, thereby multiplying cost burdens
• At the core, Schools, Colleges, and Universities are budget businessesAt the core, Schools, Colleges, and Universities are budget businesses
and have to be intent upon attracting and retaining students and staffand have to be intent upon attracting and retaining students and staff
• Recent studies have shown that a building’s physical appearance andRecent studies have shown that a building’s physical appearance and
function affect grade levelsfunction affect grade levels
• Additional surveys have shown that a large percentage of staff would haveAdditional surveys have shown that a large percentage of staff would have
preferred to work in a nicer environment vs. having a pay increasepreferred to work in a nicer environment vs. having a pay increase
8. Common Facility Problems
Environmental Conditions
Deferred Maintenance
Inadequate Funding
Inadequate Staff Training
Insufficient Practices
Building and Equipment Deterioration/Expired
Warranties
Morale and Perception by Staff, Students, Public
“Every year we compile our list with estimates. The total is around $15,000,000.00 but we only have about
$5,000,000.00 to work with so there is a huge backlog. Therefore we are forced to adjust our plan throughout the
year as systems fail that did not make the cut.”
Comment from SchoolDude capital planning survey
9. What questions should you be asking?
What is wrong or will be a future issue/need?
Will I fix it or replace it? How much will each option
cost? How will I price it?
How critical is it?
When will I address the issue(s)?
How will I pay for it?
How does it fit into a master plan?
10. Best Practices
Bring together facility condition assessment data,
maintenance requirements, and estimated costs for
capital and maintenance planning
Develop preventive and routine maintenance
programs and schedules
Track work orders/approved maintenance tasks
Measure and compare each building’s overall
condition in relation to the others, using a ranking
against a means or a “facility condition index”
Identify and prioritize major facility
upgrades/renovation requirements with cost
estimates
11. Best Practices
Develop or obtain cost estimates for all identified
future tasks
Identify and prioritize tasks/projects, including
routine, major, and deferred maintenance
Maintain/update data from facility condition
assessments and conditions including tasks
performed
Develop life cycle costs or expected future costs
based on current information of facilities and their
systems/components
Analyze cost benefits periodically for “replace vs.
renovate” decisions
14. Identify Needs
Walkthroughs (internal, 3rd party, or combination)
Work requests
Staff interviews and/or surveys
Board or government-required mandates
Review of previous year(s) for leftover needs or ongoing
projects
Surveys to, or requests from, facility staff or occupants
15.
16.
17. Prioritization of Needs
Primary Priority (emergency vs. low)
Varying viewpoints with Priorities (e.g., identify a resolution
as a low priority from an aesthetic perspective that may be a
high priority in relation to a health/safety risk or litigation
point of view) such as:
• ADA/Accessibility
• Air Quality
• Building Code
• Cosmetic
• Educational Impact
• Environmental Impact
• Litigation Potential
• Safety
Determine building deficiencies in these arenas:Determine building deficiencies in these arenas:
• Codes and standardsCodes and standards
• Architectural/StructuralArchitectural/Structural
• MechanicalMechanical
• PlumbingPlumbing
• Electrical/EnergyElectrical/Energy
• Site ConditionsSite Conditions
• Additional NeedsAdditional Needs
18. Estimates and Alternative
Resolution Scenarios
Patch vs. Replace scenarios and estimated costs
of approaches
Your previous experience, but also your
neighbors!
Bids and estimates for contracted work
RS Means, Whitestone, or similar estimating
benchmarking tool
Project the future cost (add inflationary value as
time progresses)
20. Present Needs and Options
for Approval
Summarize report into categories:
Sites/Campuses and associated Buildings
Priorities
Projects
Master Plan(s)
Funding Sources
Years
Types of Work (mechanical vs. energy conservation vs. roofing)
Summaries from various viewpoints may be able to coincide
with one another (one room’s needs could fold into others for one
large project vs. many small ones)
Have details ready for specific needs to help in plan of action
Provide graphical view for additional impact with bar graphs
and pie charts
21. Categorize Your Projects or
Needs
ADAADA
AdditionsAdditions
AestheticsAesthetics
AnalysisAnalysis
Asbestos AbatementAsbestos Abatement
Codes/StandardsCodes/Standards
Damage/WearDamage/Wear
DesignDesign
Disabled AccessDisabled Access
Electrical System UpgradesElectrical System Upgrades
Energy ConservationEnergy Conservation
EnhancementEnhancement
EnvironmentalEnvironmental
ImprovementsImprovements
Facility UpgradesFacility Upgrades
FunctionalityFunctionality
Health and Life SafetyHealth and Life Safety
UpgradesUpgrades
Human ErrorHuman Error
Life SafetyLife Safety
Loss PreventionLoss Prevention
Mechanical System UpgradesMechanical System Upgrades
New Site ConstructionNew Site Construction
Preventive Maintenance WorkPreventive Maintenance Work
RemodelingRemodeling
RenovationRenovation
Repairs - MajorRepairs - Major
Repairs - MinorRepairs - Minor
Roof ReplacementsRoof Replacements
Site ServicingSite Servicing
Site UpgradesSite Upgrades
22. Finalization of Plans,
Projects, and Funding
Constantly monitor plans to shift to
alternative solutions or entirely remove from
plan to:
Manage available monies and resources
Adapt to changes (facility change, legal requirements)
Finalize proposed bid from multiple contractors
Include next year’s projects into this year’s remaining
funding and resources
23. Schedule Timeframe
For 5, 10, 15, 20 year plans, establish a fiscal
or calendar year of when need will the most
likely impact
24. “Life Cycle”
A life cycle analysis is a structured approach or
methodology to establish a facility’s life cycle costs
Life cycle costs are anticipated expenses for each
stage in the life of a facility and its components
Life cycle costs will include capital investment costs,
financing, operations and maintenance, repair and
replacement, salvage costs, facility alterations and
improvements, and functional use costs
SOURCE: REVIEW OF DEFERRED MAINTENANCE IN THE COMMONWEALTH [of VA], DECEMBER 2004, AUDITOR OF PUBLIC ACCOUNTS
25. “Life Cycle”
Institutions should perform the life cycle analysis during
the design of a new building in conjunction with the
condition assessment of older buildings
Review the programmatic and functional use of the
building to develop a life cycle analysis of the cost to
operate a newly designed or previously constructed
building for at least 10 years
For new construction, the life cycle analysis provides
information on the cost to operate and maintain the
building to assist in budgeting for these costs
For older buildings, the analysis includes repair or
replace options
SOURCE: REVIEW OF DEFERRED MAINTENANCE IN THE COMMONWEALTH [of VA], DECEMBER 2004, AUDITOR OF PUBLIC ACCOUNTS
26. “Life Cycle” and Maintenance
Everything has a life span or expectancy
Proper preventive and timely corrective
maintenance can easily extend the life span of
building components and save capital
Typical Replacement Cost (US)Typical Replacement Cost (US)** –– $16,183/student$16,183/student
• Value of roof (6% of bldg. cost)Value of roof (6% of bldg. cost) $16,183 * .06 =$16,183 * .06 = $971/student$971/student
• Value of HVAC (11%)Value of HVAC (11%) $16,183 * .11 =$16,183 * .11 = $1,780/student$1,780/student
Total for just two systems:Total for just two systems: $2,751/student$2,751/student
Traditional life of component = 15 Years thereforeTraditional life of component = 15 Years therefore $2751 / 15 =$2751 / 15 = $183.40$183.40
If extend this by 2 years of PM = 17 Years thereforeIf extend this by 2 years of PM = 17 Years therefore $2751 / 17 =$2751 / 17 = $161.88$161.88
Capital Budget Relief/Difference:Capital Budget Relief/Difference: $21.58/student$21.58/student
If FTE is 2000 students:If FTE is 2000 students: 2000 * $21.58 =2000 * $21.58 = $43,154.67$43,154.67
savings!savings!* - American School & University magazine
27TH ANNUAL OFFICIAL EDUCATION
CONSTRUCTION REPORT Assuming a 15-year life cycle extended to 17 years with a PM program (very conservative estimate)
27. $100K
$75K
$50K
$25K
$0K
0 5 10 15 20 25
Extend the Life Cycle through PM...
$
$
Less Dollars to Fix
Issues
More Dollars to Fix
Issues
Opportune Time to Invest in PM
$ Benefit $
Replacement Threshold
2318
Source: MACTEC EngineeringYears
PM
Little or
No PM
28. Sample Life Expectancies
Varies due to proper
maintenance
Varies due to region
Costs vary in future due to
availability of resources
for maintenance and
construction materials
System
Site Improvements 25 n/a n/a
Site Utilities 40 n/a n/a
Foundation/Substruct. 50 10.25% 5.78%
Superstructure 50 13.63% 16.57%
Exterior Wall System 25 9.10% 7.49%
Exterior Windows 30 2.41% 2.59%
Exterior Doors 20 0.48% 0.44%
Roof Systems 20 4.64% 5.09%
Interior Partitions 50 5.27% 5.28%
Interior Doors 30 1.63% 1.72%
Interior Floor Finishes 15 5.45% 5.61%
Interior Wall Finishes 25 2.07% 2.17%
Interior Ceiling Finishes 25 3.48% 3.23%
Specialties 40 2.66% 2.94%
Conveying Systems 40 0.38%
Plumbing piping 30 3.50% 3.65%
Plumbing Fixtures 30 1.72% 1.54%
Fire Protect./Suppres. 30 2.57% 2.74%
HVAC Distribution 40 5.05% 5.25%
HVAC Equipment 30 11.43% 10.75%
HVAC Controls 20 2.15% 2.50%
Electrical Serv./Gen. 40 2.04% 2.68%
Electrical Distribution 50 2.45% 2.76%
Electrical Lighting 25 5.59% 6.05%
Special Electrical 15 2.46% 2.80%
Equip and Furnishings 25 n/a n/a
100.00% 100.00%
Life
Expect
% cost 1-
story
% cost 2-
story
29. Schedule Timeframe
Prior to upcoming year, begin associating
estimated start dates to work and consider:
–Workload of staffWorkload of staff
–Contractor timeframes and your timeContractor timeframes and your time
to manage themto manage them
–Impact on facility’s operationsImpact on facility’s operations
–Budget, budget, budgetBudget, budget, budget
30. Implement
Track statuses, keeping an eye out for new
impacts and prioritizing work
Tracking actual time and expenditures in
conjunction with milestones or achievements
Remaining time including delays and slack
time
Update and identify future or remaining needs
for all plans and projects
