|One of the benefits of gathering accurate facility data is not only that the true condition becomes clear, but also that it results in a benchmark to analyze the effect of investing in facility improvements. Developed by industry associations, this benchmark is known as the Facility Condition Index, or FCI.The FCI 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 0.7means that a building needs extensive repairs or replacement.
The Facility Condition Index is calculated automatically in VFA.facility® using the data gathered in facility condition assessments. VFA’s guided facility self-assessment solution, VFA.auditor®, generates real-time cost and FCI estimates using a web-based survey platform.You’ll be able to view the estimated costs connected with the identified facility deficiencies while completing the survey.
Metrics such as the Facility Condition Index give the facilities team 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 for updates, repairs or replacements.
Facility teams and management can agree on target and minimum condition standards for various asset classes. Certain types of buildings, such as data centers in the example above, are crucial to the organizational mission and call for an improved target FCI. FCI analysis provides the true cause and effect of investment decisions.
In VFA.facility, this data provides a complete view of the necessary and recommended maintenance items and their cost across the facility portfolio, as well as the expected replacement dates and costs for the major building systems. It can then serve as the basis of an organization’s strategic facilities capital plan.