With a lifespan of 50 to 100 years, a facility is a very long-term asset for an organization. Because of this, comprehending the impact that today’s decisions can have on costs and maintenance years into the future can be difficult. Unless capital planning considers a facility’s life span, what seem like gains today could actually become liabilities over the long term. For example, repairing instead of replacing a major piece of equipment might be less expensive now, but could end up costing significantly more in energy costs over the years compared to new equipment that is more efficient. Facility managers can make sure their buildings will remain assets instead of becoming obstacles by using a life-cycle approach to facility planning.

 

Facility capital planning and management is often driven by immediate condition problems and up-front costs. Waiting until an issue is urgent before addressing it means that an owner is constantly moving from failing condition to failing condition instead of planning for the most efficient and effective solution. Being able to forecast and proactively address capital costs gives managers the time to assess long-term goals and impacts, and offers more flexibility to react to changes. The best way to transition to a life-cycle approach is with a facility life-cycle analysis. The analysis assembles the information, prioritizes the requirements, and develops the tools needed to launch an organization into facility life-cycle planning and management. The three-phase process consists of assessment, analysis, and planning.