By Ameeta Soni, Chief Marketing Officer, VFA, Inc.
At the recent Canadian Healthcare Engineering Society Annual Trade Show and Education Forum, Susan Anson, General Manager of VFA Canada, was a keynote speaker on the topic of the Facility Condition Index (FCI) and the vital role this benchmark can play in enabling intelligent decisions about facilities capital planning and budgeting.
What is the FCI? It’s the ratio of deferred maintenance or problem dollars to replacement dollars and provides a straightforward comparison of an organization’s key real estate assets. To calculate the FCI for a building, divide the total estimated cost to complete deferred maintenance projects for the building by its estimated replacement value. The lower the FCI, the lower the need for remedial or renewal funding relative to the facility’s value. For example, an FCI of 0.1 signifies a 10 percent deficiency and an FCI of 0.7 means that a building needs extensive work or that it needs replacing.
The FCI gives facility managers the ability to compare similar buildings to each other, as well as to establish target condition ratings. Comparing buildings analytically also rapidly highlights the buildings that are in the greatest need.
What benchmarks are you using to compare buildings and establish priorities?
Learn more about how Facilities Benchmarking can help your organization build better capital and investment strategies.