Deferred Maintenance - Unsolvable?

The above chart demonstrates how each year that regular building maintenance (the cost of which is shown by the yellow line at bottom) is postponed, the resulting deferred and total maintenance costs (shown by the red and blue lines) rise dramatically and far exceed any potential savings from the delayed repairs (Source: NASFA presentation).

Addressing deferred maintenance and preventive maintenance has been an ongoing issue for most public sector organizations.??

While the issues are complex, having cost visibility and cost management capability to enable the efficient use of existing funds is a fundamental problem to be addressed.

?A LEAN Job Order Contracting solution is now available to ensure significantly higher levels of cost visibility and cost management.

For example, traditional JOC Programs use national average cost data with location factors or required a percentage of construction volume for implementation.?These methods result in either 30%-40% higher total project costs for the former or up to 10x higher JOC Program administrative fees for the latter.? Furthermore, neither approach dealt effectively with preventive maintenance.

?LEAN Job Order Contracting, as represented by the 4BT OpenJOC(TM) Framework, is a programmatic methodology applied to all construction and preventive maintenance projects and work orders.

?LEAN JOC assures standardized, professional, and robust methods and workflows are associated with ALL PROJECTS, as well as common data environment including locally researched repair, renovation, maintenance, and preventive maintenance cost data, represented with,

-A description of the construction/repair/renovation/demolition task/preventive maintenance in plain English.

-A unit of measure for the task (each, square foot, cubic yard, etc.)

-Associated detailed costs for required labor, material, and equipment to complete the task per unit of measure, and a total cost per unit of measure.

-An industry approved checklist for preventive maintenance (PM) task

-Organization by expanded CSI Masterformat (repair, renovation, maintenance, new build) and expanding UNIFORMAT for preventive maintenance.

Learn more?

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?Contact me to set up a quick 15-minute exploratory call and learn how other State Agencies have migrated to the 4BT LEAN JOC SOLUTION and improve productivity 3x while reducing costs with more dollars going to actual work!

Issues that create Excessive Deferred Maintenance

1) Not having a complete inventory of all owned buildings/built environment, their components, and their current physical condition.

2) Lack of robust policies or guidance on how to maintain facilities/built environment.

3) A capital outlay and maintenance process that does not function well to provide for corrective action, which will cause acceleration of the growing deferred maintenance backlog. (For example, a planning, procurement, and project delivery system that is not integrated or does not rely upon actionable current data for decision-making)

4) Lack of a set and accurate budget for preventative, ongoing and continuous maintenance activities.

5) Lack of a true preventative maintenance system and ongoing oversight to assure that it is happening efficiently.??

Glossary

Capital Renewal is the planned repair and replacement of facility systems and components having a life less than the life of the facility so the systems and components will last as long as the anticipated life of the facility. Such projects could include the repair or replacement of damaged or inoperable equipment, components of a plant, or existing utility systems; correction of deficiencies in property and plant that are required to conform with building and safety codes or those regulations associated with hazardous condition correction; or correction of deficiencies in fire protection, energy conservation, and handicapped access. Examples include replacing a roof or heating system that has a useful life of 20years in a building with a useful life of 40 years.

Continuous Maintenance is the preserving of facilities and their components from failure or deterioration, which is necessary to realize its originally anticipated useful life. These activities include preventive maintenance; cyclic maintenance; repairs; painting; resurfacing; periodic inspection, adjustment lubrication, and cleaning (non-janitorial) of equipment; special safety inspections; periodic condition assessments; and other actions to assure continuing service and to prevent breakdown. Examples include changing belts, inspecting roofs, and replacing filters.

Deferred Maintenance occurs when the facility owner leaves unperformed planned maintenance, repairs, replacement, and renewal projects due to a lack of resources or perceived low priority, and deferral of the activity results in a progressive deterioration of the facility condition or performance. The cost of the deterioration, including capital costs, operating costs, and productivity losses, is expected to increase if the activity continues to be deferred.

Deferred Maintenance Backlog is the total dollar amount of deferred maintenance deficiencies identified by a comprehensive facilities condition assessment of facilities and their integral systems and equipment.

Emergency Maintenance is the repair or replacement of property requiring immediate attention because the functioning of a critical system is impaired, or because health, safety, security of life or property is endangered.

Facility Condition Assessments (FCA) are physical periodic inspections by qualified personnel to fully determine and document the condition of a facility or item of equipment and to identify repair, rehabilitation, and replacement needs and costs.

Facility Condition Index (FCI) is a ratio comparing the deferred maintenance deficiencies to the current replacement value of the facility or equipment item to measure the condition of the facility or equipment item at a specific time. The higher the ratio, the worse the condition of the building is.

Life Cycle Analysis is a structured approach or methodology to establish life cycle costs. This involves an evaluation of funding options, programmatic needs, economic impact, and space availability. This approach includes options to buy, lease, build, sell, renovate, or demolish.

Life Cycle Assessments (LCA) are physical inspections of a facility by qualified personnel to inventory and collect information about the building’s capital components, size of the building, and age of the building and equipment. This type of assessment allows the personnel to quantitatively adjust the lifespan of the components to reflect its real condition. The entered assessment information creates a cost model to estimate the existing deferred maintenance and future renewal requirements for the capital components.

Life Cycle Costs are the anticipated expenses for each stage in the life of a facility and its components. Life cycle costs include capital investment costs, financing, operations and maintenance, repair and replacement, salvage costs, facility alterations and improvements, and functional use costs.

Preventive Maintenance is the periodic scheduling and planning of maintenance activities that extends and controls deterioration of permanent equipment and plant facilities. This includes repetitive and anticipated work planned to perform inspections, provide adjustments, continuous cleaning, and minor repairs of building systems and equipment.?