What is the Facility Condition Index?

March 21, 2012

By Ameeta Soni, Chief Marketing Officer, VFA, Inc.

The Facility Condition Index (FCI) is a benchmark metric, developed by industry associations such as NACUBO and APPPA, to analyze the effect of investing in facility improvements.

The Facility Condition Index is the ratio of deferred maintenance dollars to replacement dollars and provides a straightforward comparison of an organization’s key 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, which is generally considered low, and an FCI of 0.7 means that a building needs extensive repairs or replacement.

Facility managers can agree on minimum and target condition standards for various types of buildings; for example, data centers may be crucial to the organizational mission and call for an improved target FCI. Facility Condition Index analysis provides the true cause and effect of investment decisions.

How are you benchmarking the condition of your facilities?

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