If you’re thinking about putting off physical plant maintenance as a belt-tightening move, here’s some recent research that might change your mind.
Research from the Pacific Partners Consulting Group found that every $1 in deferred maintenance costs $4 of capital renewal needs in the future. It’s proof of the old adage: “Pay me now or pay me later.”
How did the researchers come up with that number?
They studied a number of schools and universities and determined that the average school was spending only 0.2% of their buildings’ and systems’ current replacement value (CRV) on ongoing maintenance. As a result, that increased the average school’s budget necessary for capital repairs to 1.5% to 2.7%. That’s because:
- less preventive maintenance (PM) shortened the life-cycle on building systems by one-third, and
- less PM led to more emergency repairs, which are more expensive than planned repairs.