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FACILITY CONDITION INDEX

FacilityConditionIndex(FCI)isanindustrystandardassetmanagementtoolwhichmeasuresthe“constructedasset’sconditionataspecificpointintime”(USFederalRealPropertyCouncil,2008).Itisafunctionalindicatorresultingfromananalysisofdifferentbutrelatedoperationalindicators(suchasbuildingrepairneeds)toobtainanoverviewofabuilding’sconditionasanumericalvalue.

ItwasdevelopedbytheUSNavytoassessconditionsofvesselsandstrategicallyprioritizerenewalspending.FCIwasfirstutilizedasanindexfordeterminingbuildingconditionintheearly1990sbyUSNationalAssociationofCollegeandUniversitiesandquicklybecamethestandardforpostsecondaryinstitutionsacrossNorthAmerica.RecentlyconditionindexmeasureshavebeenadoptedbytheUSFederalRealPropertyCouncil,AmericanPublicWorksAssociation,CouncilofOntarioUniversities,FederationofCanadianMunicipalities(throughtheirInfraguidepublications),HealthAuthorities,EducationMinistriesandSocialHousingAuthoritiesthroughoutNorthAmerica.

FCIisobtainedbyaggregatingthetotalcostofanyneededoroutstandingrepairs,renewalorupgraderequirementsatabuildingcomparedtothecurrentreplacementvalueofthebuildingcomponents.Itistheratioofthe“repairneeds”toreplacementvalue”expressedinpercentageterms.LandvalueisnotconsideredwhenevaluatingFCI.

ThelowerthevalueofFCI,thebetterconditionthatabuildingisin.CurrentindustrybenchmarksindicatethefollowingsubjectiveconditionratingsforfacilitieswithvariousrangesofFCI:

0‐5%FCI / Assetisingoodcondition
5‐10%FCI / Assetisinfair
condition
10–30%FCI / Assetisinpoor
condition

Forexample,abuildingwithareplacementvalueof$1,000,000withoutstandingrenewalneedsof$90,000wouldhaveanFCIof9%,indicatingthebuildingisinfaircondition.FCIcanbereportedatalllevelsintheassethierarchy;itcanbeusedtoexpresscomponentcondition

(example:elevators),buildingcondition,developmentconditionandportfoliocondition,witheachhigherlevelbeingtheaggregateofthosebeneathitinthehierarchy.

WhileoriginallydevelopedbytheUSNavy,FCIwasquicklyadoptedbyuniversitiesandotherpublicinstitutionstomonitorbuildingconditionandemployedasastrategicdecision‐makinginvestmenttool.OtherorganizationsinCanadaareadoptingthistoolandareatvariousstagesofimplementation.ThisindicatorisanalogoustotheconditionindexemployedformanyyearsbytheMinistryofTransportationtomonitorconditionofbridgesintheprovince,usedtoidentifyandprioritizerepairs.BCHousingiscurrentlyusingFCItoassistwithinvestmentdecisionsandstrategicdirections.

FCIIMPACTS,RISKS RESIDENT MORALE

UtilizingFCIprovidesaprofessionalmethodofmeasurementtodeterminetherelativeconditionindex ofasingle building, groupof buildings, or if desired, a totalportfolio.AsFCIincreases, theassetswillexperience:

  • Increasedriskofcomponentfailure
  • Increasedfacilitymaintenanceandoperatingcosts
  • Greaternegativeimpactstostaffandresidents.

Table1onthefollowingpageillustratesthetypesofrisksandtradeoffsthatcanbeexpectedwhenbuildingsaremaintainedatdifferentFCIlevels.

Table 1:FacilityCondition Index Levels and Impact to Component Failure Risk, ResidentsandStaff

CommonImplicationsofFCItoHousingPortfolios
FCI
Levels / ImpacttoBuildingsandComponents / Examplesof ComponentIssues / ResidentComplaintsandMorale / MaintenanceStaffImpact
Critical(Over 30%) / ‐ Facilitieswill lookwornwithobviousdeterioration.
‐ Equipmentfailureoccurringfrequently. Occasional buildingshut downwill likelyoccur.Management riskis high.
‐ Health and safetyissuefigureprominently / ‐ Replacement ofmultiplesystems required (i.e.
Mechanical, Electrical,Architecturaland Structural
‐ Building heatingsystemfailure.
‐ Evacuationof upper floordue to unaddressedroofleakage.
‐ Structuralissues includingenvelopereplacement. / ‐ Resident complaints will be very high withan unmanageable levelof frequency.
‐ Lack ofmaintenance willaffect resident attitudes and morale. / ‐ Staff will not beable to provideregular scheduled maintenancedue to high levelof“reactive”calls
Poor(11% to 30%) / ‐ Facilitieswill lookwornwith apparentand increasingdeterioration
‐ Frequentcomponent and equipment failuremay occur.Occasionalbuildingshut downwilloccur / ‐ Replacement ofspecificmajorsystems required, suchas heatingand plumbingsystems,complete interiorrenovations,buildingenveloperestoration.
‐ Shut downmay affect someunits (i.e.roofor pipeleakage) / ‐ Resident complaints will be high withincreasedleveloffrequency.
‐ Concernabout negativeresidentmoralewill be raisedand becomeevident. / ‐ Facilitiesstafftimewill likelybedivertedfromregular scheduled maintenanceand forcedto“reactive”mode
Fair(6% to 10%) / ‐ Facilitiesarebeginningto showsigns ofwear
‐ More frequentcomponent and equipment failurewilloccur / ‐ Repairs and replacement ofspecificsystems,i.e.boiler,window replacements,interiorrenovations. / ‐ Resident complaints will occur withhigher leveloffrequency
‐ Resident moralemay be affected / ‐ Facilitiesstafftimemay attimes be divertedfrom regularscheduled maintenance
Good(0% to 5%) / ‐ Facilitieswill lookclean and functional
‐ Limitedandmanageable component and equipment failuremayoccur / ‐ Repairs and replacement ofmoreof an aestheticorgeneralnature,such as wallpainting,carpet replacement, roofrepair,window caulking. / ‐ Resident complaints will be low andmanageable
‐ Resident moralewill be positiveandevident / ‐ Facilitiesstafftimewill bedevotedtoregular scheduled maintenance