Facility Condition Index

February 21, 2018

Facility maintenance

This is part two in a series on preventative maintenance.


Last month we looked at conducting a Facility Condition Assessment (FCA) as part of your larger preventative maintenance program. One outcome of conducting an FCA is it allows you to create a Facility Condition Index (FCI). At the risk of throwing too many acronyms at you, an FCI is a standard benchmark – an equation – you can use to compare your facility against other facilities, or against your own facility at another time in the past. It can also support your asset management initiatives, especially if you are managing several facilities. An FCI can:


  • Calculate catch-up costs
  • Identify priorities in resource allocation decisions
  • Track the extent of condition drift over time
  • Determine annual reinvestment rates to prevent further accumulation of deferred maintenance


Your FCI can even be used in the development and usage of a Building Information Modeling (BIM).


You can calculate your FCI like this:


Maintenance + repair + replacement deficiencies of your facility


Your facility’s current replacement value (CRV)


Thanks to your FCA, you will have all the figures you need to calculate the top line of this equation. You can calculate your CRV by taking the original total cost of your facility and multiplying it by an escalation factor, for example, the Engineering News Record’s building cost index.


Most facility managers (FMs) work with this set of ratings:

  • Good (under 0.05)
  • Fair (0.05 to 0.10)
  • Poor (0.11 to 0.20)
  • Critical (over 0.20)
  • An FCI of 0.10 means that 10% of the replacement value of the building is tied up in deferred maintenance.


Your facility’s FCI is a relative indicator and should be tracked over time to provide a way of identifying the degree of property degradation over time. It’s also a good tool to help predict future condition changes and help you plan for any predicted issues that may increase budget or maintenance schedules.


As an FM, sometimes you need to defer maintenance in your facility thanks to budgetary concerns, staffing issues, or a backlog of work. Your FCI benchmark can help with this, as you can use it to calculate reinvestment rates aimed at preventing future deferred maintenance. Calculating these “catch-up costs” can help you get the funding you need to bring your facility back up to current maintenance schedules. You can also use your FCI to determine if you need to move to another facility, if your current one is no longer feasible.


Finally, you can share your FCI with senior management to justify budget and staffing needs, show work performed, and, ultimately, show how well you have performed your job.


For more information on developing a preventative maintenance program for your facility, contact Vanguard Resources.