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SURVIVING DEFERRED MAINTENANCE:

Take Back Control of Your FacilityLisa Cooley, LEED AP, Director Federal Solutions at RSMeans from

The Gordian GroupPhil Waier, PE, Principal Engineer Emeritus

CEUs & CFM® Maintenance Points

You are eligible to receive Continuing Education Units and Certified Facility Manager® maintenance points for attending sessions at IFMA’s World Workplace.

To receive CEU points, you must add the US$15 processing fee to your registration. (Full Event PLUS! registration includes the CEU processing fee.)

To Receive 20 CFM Maintenance Points

Record your attendance for the three-day conference on your CFM Recertification Form in CAMP.

At re-certification time, submit your completed CFM Recertification Form.

Managing CEUs:

• Log into the Attendee Service Center. http://tinyurl.com/p6y4fxbYour log-in information was sent to you when you registered for the conference.

• Click “Start CEU Process” on the left-hand side.

• Click “Start” next to the session you attended.

• Complete the session evaluation.

• Click “Start Test” next to the session.After passing the test, your certificate will be available for download.

**If you wish to receive CEUs or LUs from other organizations, you must contact those organizations for instructions on reporting credit hours.

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Your Feedback is Valued!

Please take the time to Evaluate Sessions

Log into the Attendee Service Centerhttp://tinyurl.com/p6y4fxb

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Meet Our Presenters:

Lisa Cooley, LEED APDirector of Federal Solutions at The Gordian Group

Phil Waier, PE, LEED APPrincipal Engineer Emeritus

Review Session Learning Objectives

LEARNING OBJECTIVE 1Attendees will learn about the factors that contribute to

deferred maintenance.LEARNING OBJECTIVE 2

Attendees will hear how data can impact deferred maintenance throughout the construction process.

LEARNING OBJECTIVE 3Attendees will identify the appropriate data for particular stages

in the construction process.LEARNING OBJECTIVE 4

Attendees will learn how applying this data can alleviate and prevent deferred maintenance.

DEFERRED MAINTENANCE

• The practice of postponing maintenance activities such as repairs on both real property (i.e. infrastructure) and personal property (i.e. machinery) in order to save costs, meet budget funding levels, or realign available budget monies.

• The failure to perform needed repairs could lead to asset deterioration and ultimately asset impairment.

• Generally, a policy of continued deferred maintenance may result in higher costs, asset failure, and in some cases, health and safety implications.

• Deferred maintenance is defined as any repair that does not occur at the scheduled time.

NEVER PUT OFF UNTIL TOMORROW WHAT YOU CAN

ACCOMPLISH…

…today.

- Lord Chesterfield

NEVER PUT OFF UNTIL TOMORROW WHAT YOU CAN

ACCOMPLISH…

…the day after tomorrow.

- Mark Twain

IMPACTS TO BUILDING AND EQUIPMENT

1/3

COST IMPACT OF DEFERRED MAINTENANCE

Geaslin’s Inverse-Square Rule for Deferred Maintenance

THE COST OF DEFERRING MAINTENANCE

15x

CAUSES OF DEFERRED MAINTENANCE

MORE ASSET MANAGEMENT DEFINITIONS

• Capital Renewal

• CRV (Current Replacement Value)

• FCI (Facility Condition Index)

• FCI is used to:

– Inform resource allocation decisions

– Calculate catch-up costs

– Establish KPIs

– Track condition drift over time.

FCI = DMCRV

ONGOING FACILITY INVESTMENTS AFTER INITIAL

CONSTRUCTION

Preventative Maintenance

Repair Maintenance Cyclical Component Replacement

Capital Renewal

Any of these can be deferred

APPROACHES TO QUANTIFYING DEFERRED

MAINTENANCE

Condition Assessment

Deficiency-specific

Thorough but labor intensive and expensive

Parametric Approaches

Facilitates asset management with fewer resources

Relies on models and owner understanding of building assets

HOW COST DATA CAN HELP

1. Quantify deferred maintenance liabilities through accurate estimates

2. Provide a basis for efficiently modeling Current Replacement Value

3. Building life cycle costs to allow for accurate budgeting

4. Guide a program of preventative and repair maintenance which can avoid deferred maintenance

5. Provide a pricing for efficient execution of deferred maintenance programs through Job Order Contracting.

Different cost data types for different purposes!

mechanism

Information Sources

Unit Prices

Assemblies

Models

STRUCTURE OF RSMEANS DATABASE

Calculate CRVs

Estimate deferred maintenance costs

Detailed project-specific estimates

FMR

CASE STUDY: DEPARTMENT OF ENERGY

• Prompted by Executive Order 13327 in 2004, DOE invested in CAIS (condition assessment information system) and FIMS (facility information management system) powered by standard and customized RSMeans data

• Developed a suite of standard and highly customized models to efficiently ascertain CRV of 127M SF at 50+ sites

• Applies FMR data to predict life cycle costs and funds needed to support facility management and report to congress

• Continuous development of program

COST DATA FOR ASSET MANAGEMENT

Facilities Maintenance and Repair

• Maintenance & Repair

– Repair maintenance

– Capital Renewal

• Preventive Maintenance

• General Maintenance

REPAIR/REPLACEMENT MAINTENANCE

CAPITAL RENEWAL

PREVENTATIVE MAINTENANCE

STOP DEFERRED MAINTENANCE BEFORE IT

STARTS

• Estimate deferred maintenance costs in the most effective way possible with accurate cost data

• Create a maintenance schedule with RSMeans Life Cycle Costing data

• Plan/budget for 5, 10, 20 years with RSMeans data

LIFE CYCLE COSTING (LCC)

ASTM Definition: An economic method of evaluating a project in which all costs arising from owning, operating, maintaining and disposing of the project are considered. These costs are added over the life of the project. All costs are converted to present values.

OUR LCC DEFINITION

An economic method of evaluating a project’s preventive maintenance, repair maintenance and capital renewal costs. These costs are added annually over the life of the project or a specific time frame.

LIFE CYCLE COSTS

• Life cycle costs are based upon:

– Type of structure

– Building’s equipment

LIFE CYCLE COST DEMO

TACKLE DEFERRED MAINTENANCE WITH JOC

Job Order Contracting (JOC) is:

• A firm priced, competitively bid, indefinite quantity procurement process

• Primarily used for repair, alterations and minor new construction projects

• A fundamentally different construction procurement relationship

– Contractors are subject to different motivations and behaviors

– Non-adversarial relationship between owner & contractor

• Brings a programmatic, data-based tool to deferred maintenance execution

CONSTRUCTION TASK CATALOG®

Different than the data used to estimate deferred maintenance

• Actual, local costs of work items needed for deferred maintenance program

• Customized technical specifications for each task

• Quantity breaks and demolition costs

DEFERRED MAINTENANCE EXECUTION EFFICIENCY

• Faster procurement – weeks instead of months

• Based on owner-contractor partnership = non-adversarial relationship

CASE STUDY: HOLBROOK UNIFIED SCHOOL DISTRICT

• Security/Safety Updates

• Short timeline

• Traditional procurement process not possible

• With JOC:

– Construction Started in May

– Construction Completed Mid-July

Holbrook Junior High School

IN CONCLUSION

• Life Cycle Cost Data can prevent deferred maintenance before it starts

• Use assemblies and unit Cost Data to estimate deferred maintenance

• Expedite those repairs with Job Order Contracting

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THANK YOU!

Be sure to evaluate the session online at the Attendee Service Center

http://tinyurl.com/p6y4fxb