When creating a budget for building maintenance, there are five simple steps you should follow. Then, examine the lifecycle of the most expensive equipment. Next, talk to management to determine what capital expenditures are coming up. Set up a contingency fund.
Finally, get ready to reassess and reevaluate your building throughout the year. Maintenance budgeting is a fundamental element that drives equipment reliability. By managing costs according to a budget, variances will become apparent as the work is executed. The best data and analytics allow organizations to determine where these problems arise and why.
There are five basic steps you can take when budgeting for building maintenance. Next, analyze the lifecycle of the most expensive equipment. First, talk to management to decide what capital costs will be incurred. Finally, prepare to reassess and reevaluate the building throughout the year.
Developing and updating a robust equipment maintenance plan can extend the likelihood of an extended service life, but knowing when equipment will need to be replaced puts the manager in a much better position when budgeting. This information is essential for maintenance teams to create an accurate budget, but none of it is necessary or important to finance teams that require expected costs to be summarized in the corporate chart of accounts. It also helps you organize work and equipment schedules more efficiently, manage parts lists and inventory counts, and ensure that every part of your facility's budget is accounted for. On the other hand, this number should not be the budget of a facility specializing in the production of parts for advanced medical equipment.
One of the best budgeting ideas for facilities managers is to take a close look at work and facility management patterns and budgeting for them. In the absence of specific details on which to base the maintenance and repair budget, this amount of funding should be used as an absolute minimum amount. Getting any budget approved is a challenge in most companies, but especially when there is a lot of competition for funding. Finding that money from one year to the next can be difficult, but over a period of a few years the Finance Committee can steadily increase the maintenance budget to the 1.5% needed.
When maintenance budgets are not developed at the sustainable asset level, the forecast figures required by the finance team will be purely conjectural and high-level. Asset details and cost history are often unavailable or unavailable, making it nearly impossible to create and follow an accurate maintenance budget. That amount allows you to keep up with the growing needs of a church building and perhaps tackle some long-term projects in phases. That said, this should be the maximum amount of money allocated to maintaining special equipment, unless there is a very good reason to expand the budget in this region.
Failure to make an adequate budget can also lead to executives asking for a higher standard of justification for future funding.