Thursday, May 10, 2012

Facility Maintenance Costs Rise With Each Deferral

Deferring Facility Maintenance Will Cost You More in the Long Run

A recent article in the Louisiana State University Reveille, reveals the true cost of deferred maintenance and the need for greater importance to be placed on preventative maintenance programs for the buildings on its campus.
Facility Maintenance Costs Will Increase 

According to the article, in the 1980’s the state of Louisiana saw a comparative budget shortfall and the University was required to push back funding for several academic buildings across its campus that were in dire need of repair. Tony Lombardo, executive director of Facility Services at LSU said that many of the systems in today’s buildings on the campus are the same ones on which maintenance had been deferred three decades ago. “That’s why these budget situations are so devastating, because we’re climbing out of a hole, not moving the University forward.” It is widely accepted that putting off a routine facility maintenance schedule will actually cost a business more in the long-term. Each year, the cost of maintenance increases by about 5% due to inflation, rising costs of supplies and man-hours. A recent assessment of LSU’s campus building provides evidence, indicating that the University would have to fork over more than $322 million to bring all of the buildings up to current standards.

The issue is not specific to LSU, however. Another study of Arkansas State University’s maintenance budget indicates a similar finding. The University has experienced considerable enrollment growth. Despite this growth ASU has proposed modest tuition rate increases which only allow for teacher and faculty salary increases. The institution will again not be able to address massive critical maintenance needs.  The latest facilities audit showed more than $205 million in deferred maintenance needs but ASU is not in line to receive any earmarked deferred maintenance funding from the state this year.

The need for routine preventative maintenance programs applies to buildings and homes of all sizes and allows for the early identification of problems. It significantly increases the life cycle of buildings and equipment, lowers expenditures and allows for better planning and budgeting. 

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