Budgeting Season is Here — Decisions Made Now Impact Everything

Mid to late Q4 of every year will find facility management leaders and their teams engaged in budget planning and strategy for the year ahead. As with any budgeting effort, understanding facility management costs — from new asset purchase and installation to ongoing maintenance — from recent years is critical to making informed decisions about needs going forward.

This information and the process of analyzing it is about more than looking at what was spent but also what was not spent and the potential impact of that. For example, if a previous year’s budget did not allow for preventive maintenance for a specific location or group of assets, leaders would be wise to factor the risk of that into future budget proposals. According to industry research, deferred repairs or maintenance of as little as $100 could turn into a significantly more expensive $10,000 repair later.

Here, we’ll provide some facility maintenance cost management recommendations that have been proven to help organizations with anywhere from 50 to 500 locations or more streamline and enhance their budget planning.

4 Maintenance Cost Management Recommendations That Will Make the New Year More Prioritized and Cost Effective

Build a Detailed Multisite Asset Inventory

Each location in your footprint has dozens of individual assets across HVAC/R, lighting, plumbing, signage, FLS, and more. Do you know the historical performance of those assets? Do you have all asset information such as model and serial numbers centrally stored? Do you have past maintenance records, invoices, and other important documentation readily available? If not, consider building an asset inventory list. It’s exactly what it sounds like, and it can help you dramatically impact maintenance cost management for the better. You’ll be able to identify your most critically underperforming assets by location and other criteria and make prioritized decisions about where to spend your resources in the future.

Consider the CapEx Approach for Replacements

Another recommendation for optimizing facility maintenance cost management is to consider shifting to a CapEx-focused approach. Through this, you can proactively invest in long-term solutions such as asset replacements or upgrades and predictive maintenance technologies (such as energy management systems), which reduce costly emergency repairs and unplanned downtime. This method enhances cost predictability in annual budget planning and also supports overall organizational goals by extending asset lifespans and supporting sustainability initiatives.

Look Beyond the Assets Themselves

Asset replacements and repairs are important in facility maintenance cost management — but there’s more to plan for beyond these alone. Also consider the energy cost tied to various systems. Energy is one of the leading costs for commercial buildings, accounting for anywhere from 20% to 40% of operating expenses. Even a modest decrease in energy utilization can translate into significant savings as well as reduced maintenance costs. In addition to the asset inventory above, budgeting for lighting audits, retrofits and upgrades, and preventive maintenance solutions will help you invest in the energy intensity of your locations while also providing lucrative rebates that can help offset initial investments.

Consolidate Vendors with a Facility Management Aggregator

Last but not least (and certainly most impactful), consider the cost of your team having to deal with numerous commercial service vendors throughout your footprint. Are pricing and work quality appropriate and consistent? Are there gaps in service coverage that force your team to spend time finding new vendors? How much time is lost dealing with multiple work order management systems, account contacts, billing systems, etc.? Simply managing your program has a significant cost that must be considered in your budget planning. Carefully evaluate the benefits of working with a facility management aggregator to save.

Build a More Resilient Budget for the Year Ahead

Even if you already have a refined facility management budgeting process, consider how the above recommendations can help you take it further. At CLS Facility Services, we partner with our clients nationwide to help them make the most of their resources to extend the performance and lifespan of their assets. These are significant investments — ones that impact customers and employees every day. Maximizing that investment while leveraging every opportunity for facility maintenance cost management is crucial.

If we can assist you as you look to build your budget and strategy for the road ahead, don’t hesitate to reach out. You can book a time that works best for you here, or fill out the form below.