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Published: Dec 11 2017

What to Include in Your Facility Capital Plan

For many organizations, it is now time to determine how to allocate budgets for the upcoming year (if you operate on the calendar year for your fiscal budget). As you think through your facility capital plan, what are some key elements that you should include in your plan?

Before you start making a list of everything that needs investment in the coming year, the first step is to think about your current facilities and associated assets. What do you have that you need to maintain? Without a comprehensive list, it can be difficult – if not impossible – to truly know how much you need to invest in order to maintain your facilities at what you define as optimal condition.

Once you do understand what you have, it’s important to evaluate the condition. Hearing that a roof is about to cave in at any moment is much different than having an objective assessment to understand the true condition. In doing so, you can evaluate all components of your facilities – from the structure to the interior assets – for a clear idea of whether your investment matches up to your needs.

From here, it’s important to prioritize your list of things that require investment. Using a software solution like VFA Facility makes it much easier to do this, as it leverages industry requirements and data to ensure that you are investing in the right spots. You can also tailor it to specific information related to your company, such as whether your portfolio will include a particular facility in one year, five years or even 10 years down the road.

That being said, your 2016 facility capital plan should include the following:

  • A clear outline of your facility capital planning goals. What are you hoping to achieve during this calendar year with your capital plan? Do you simply want to maintain your buildings, or do you want to optimize your conditions? Linking your goals with the strategic objectives of your organization can ensure that you are in line with the long-term mission and vision of the company.
  • Inventory of your facilities and related assets. You can’t manage what you don’t measure. This old adage especially rings true when it comes to your facility capital plan. If you don’t have a good idea of what you have, there’s no way you can know if your investment works for your needs. Having a comprehensive inventory of your portfolio gives you the foundation you need to create a sound and effective facility capital plan.
  • Priorities based on your available budget. Knowing where your money will go in the coming year is just as important as having a detailed inventory of what you’ll be managing. Establish your priorities by leveraging industry data and recommendations balanced with your company’s own goals and metrics.
  • Pre-determined dates to measure success. Once you’ve created your facility capital plan, spend the time to ensure that you are executing on the plan. Establish pre-determined meetings, both outlining when and who should be involved, to track progress and determine if you need to reallocate priorities based on organizational changes. In doing so, you can keep a thumb on the progress of your facility capital plan and track toward success.

Interested in learning more? See how VFA Facility can help you simplify the facility capital planning process and maximize your facility capital planning budget.

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