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  • 1.  Long Term Capital Budgeting

    Posted 05-17-2022 07:54 AM
    Does anyone know of a standard that identifies how frequently institutional buildings should be budgeted for a major renovation?

    I'm not looking for life cycles of independent building systems but generally, when planning a capital program for hundreds of buildings, how frequently you should expect a building will require a significant capital investment to repair/replace major building systems. I'm thinking this will be between 25-30 years but would like to be able to reference a source that gives a guide for this number.

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    Bart Trudeau AIA
    TRUDEAUarchitects PLLC
    Latham NY
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    AIA Conference on Architecture June 22-25 Chicago


  • 2.  RE: Long Term Capital Budgeting

    Posted 05-18-2022 05:37 PM
    I recall an outstanding presentation years ago at an AIA convention (1999 or so) by a facility management leader from the University of California system on just this topic: Budgeting for Facility Renewal. Perhaps you can search to see if any documentation on their process is available online. At the time, this concept was revolutionary. Perhaps still is.

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    Philip Kabza AIA
    SpecGuy Specifications Consultants
    Mount Dora FL
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    AIA Conference on Architecture June 22-25 Chicago


  • 3.  RE: Long Term Capital Budgeting

    Posted 05-19-2022 12:52 PM
    Hi Bart,

    The life cycle assessment tool usually has some default values for service life that you can refer to, example: https://www.rics.org/globalassets/rics-website/media/news/whole-life-carbon-assessment-for-the--built-environment-november-2017.pdf
    For generic answers, HVAC is typically 15-25 years (depending what components of the systems), LED lighting is about 30k-50k hours (10-20 years), finishing/interior (10 years), and major envelope upgrade (50 years).

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    Eddy Santosa AIA
    IMEG Corporation
    Pasadena CA
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    AIA Conference on Architecture June 22-25 Chicago


  • 4.  RE: Long Term Capital Budgeting

    Posted 05-19-2022 04:37 PM

    Thank you for the feedback. I know the cycle should be around 30 years, since that's when major systems will be failing. I was hoping there was a national or international standard I could reference. Or possibly the GSA has a guideline.

     

    Bart Trudeau

    AIA, President

     

    TRUDEAU ASSOCIATES

    the art and science of facilities®

     

    219 Forts Ferry Road, Latham, NY 12110

    Office: (518) 785-5851

    Direct: (518) 785-6516

    mobile: (518) 469-8155

    truarchs.com

     




    AIA Conference on Architecture June 22-25 Chicago


  • 5.  RE: Long Term Capital Budgeting

    Posted 05-20-2022 05:50 PM
    You can also reference the IRS publication 946 on How to Depreciate Property. Depending on their accounting basis, the recovery period for nonresidential property (& improvements) appears to be 39 years. If the property (or improvement) was put into service prior to May 13, 1993, the recovery period appears to be 31.5 years. There are several other IRS sections as well that cover roof, HVAC, etc... Being able to tie your replacement recommendations to the IRS' depreciable asset schedule should serve as good enough bona fides for your case.

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    Venuss Gervin AIA
    Cooper Carry Inc
    Atlanta GA
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    AIA Conference on Architecture June 22-25 Chicago


  • 6.  RE: Long Term Capital Budgeting

    Posted 05-18-2022 06:06 PM

    There are quite a few property management software available.
    National Property Managers Association (NPMA).
    One potential source would be IFMA organization.

    Proactive Maintenance Strategies for Operational Value

    Knowledge Library remove preview
    Proactive Maintenance Strategies for Operational Value
    2019 by C & W Services, David Auton beginner article Reviewed Preventative (PM) and predictive maintenance (PdM) programs are central to success and a critical element of effective asset management. A formal program helps ensure the appropriate proactive maintenance strategy is identified, scheduled and executed for each asset.
    View this on Knowledge Library >


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    Wendel Chamberlin
    WC Consulting Inc.
    Madison WI
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    AIA Conference on Architecture June 22-25 Chicago


  • 7.  RE: Long Term Capital Budgeting

    Posted 05-18-2022 06:38 PM
    Hi, 
    I can only give the example of Portugal. Public buildings normaly don't have relevant intrevention befor 30 years. Also the current bussiness plan consider 30 years for the life cicle of some equipments and systems components of buildings. Wend the construction is financed by banks funds the period to refurnished is also 30 years.
    Best


    Miguel Amado



    AIA Conference on Architecture June 22-25 Chicago