For capital funding budgets and expenditure ranking, property condition assessments are an invaluable tool. They’re an excellent way to understand a building’s condition, prioritize improvements and estimate costs. These costs cover renewal, repair and replacement of key systems over time. They can also help track the effectiveness of energy-saving programs and other changes.
When considering property condition assessments, here are some best practices to keep in mind.
Consider the Source
An objective and repeatable facility inspection process is vital to getting accurate results. For this reason, assessments are usually provided by a firm that specializes in this function. Such a firm also has robust internal practices in place.
Ideally the firm involved would not recommend further design, construction or program management activities as outcomes. These recommendations can impair objectivity. Having expert third-party validity is especially significant when findings must be reported to other decision makers such as boards of directors, legislative bodies and community authorities.
Decide Which Level of Property Condition Assessment You Need
When it comes to determining the type of property condition assessment you need, there are a few considerations to keep in mind. These include the type of building you have, your intentions for the data as well as your budget and timeframe.
Physical property condition assessments are more expensive and more time-consuming. However, they provide in-depth justification for major capital expenditures such as renovations or retrofits. For example, the owner of a school may want to justify extensive retrofits that require a large upfront expenditure. A physical property condition assessment can show if these changes will lead to significant cost savings down the road.
Predictive modeling is quick and efficient, as well as significantly less expensive. But it only provides a high-level overview. An owner considering the addition of a small auxiliary building might use this type of assessment to forecast future energy costs.
Both types of analysis can provide valuable information—you just need to know which kind suits your needs before you begin.
Get the Big Picture
Metrics for property condition assessments generally fall into two camps. The first is the economic-centered approach that addresses and corrects deficiencies. The second is the engineering-derived approach that measures asset conditions without prioritizing work. Relying on one or the other can result in an incomplete understanding of building needs.
Both metrics provide an important perspective to the asset management decision-making process. This means both should be considered with equal weight. It’s key to have well-qualified professionals with extensive experience complete both types of assessments.
Look to the Cloud
Paper-based data collection systems quickly become outdated. They can also be challenging to use, particularly when dealing with large or remote teams. Instead, cloud-based asset management software can create a central repository of information for all property condition assessments. The benefits include instant access, enhanced search and reporting capabilities as well as the ability to move information into existing maintenance and capital planning systems. When it comes to reassessing your assets again in the future, you’ll be glad you took this extra step!
Used correctly, property condition assessments are an effective way for clients to gain a thorough understanding of their property. They can also see the need, extent, cost and urgency of improvement projects. This information allows facility executives and managers to address current operational requirements. It also helps prepare for future capital project planning efforts and managing financial risk.
Photos: tsyhun via Shutterstock.com
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