Post on 16-Apr-2017
transcript
1
Summary of Trends
The aging campus is driven by the need to renovate or replace 1960s and 70s
buildings, many of which were poorly constructed
To add to the problem, campuses have added new square footage to address
increasing enrollment that has now leveled off or is even in decline
The demand for both “catch up” on aging buildings and “keep up” of newer buildings
is much higher than the availability of capital funding
Therefore, backlogs continue to grow even though capital funding is finally back to
pre-recession levels
Flat operating budgets have not provided relief to the backlog problem
After some gains, energy consumption has leveled off; emissions have improved due
to fuel switching
In the face of these “bad news” trends, why have we not seen more building
failures and major facility problems on campuses?
Why the Roof Hasn’t Caved In
3
What are Campuses Doing to Manage Risk?
To keep the roof from caving in and building systems from failing
Better data to identify and manage the most critical
repair risks for campus.
Systems tend to outperform their statistical target.
Lower cost repairs to systems rather than full system
replacements have bought extra service time.
Because campuses are a collection of buildings –
the risk is diversified over the portfolio.
The functional obsolescence of space drives
investments that brings outside resources, especially
to space.
4
We Need to Make the Problem Smaller
Not all buildings are created equal, therefore they
should not be treated that way.
Use building portfolios – for operations and capital - to
make the problem smaller
Subdivide capital projects by issues of reliability,
safety/code, program, and asset preservation.
Create “balance” and “diversity” in all facility
investments to lower risks.
5
Time is On Our Side
Yes it is
What we’ve learned over the past 30 years …
fixing components rather than replacing entire systems,
that life cycle estimates are inherently conservative,
coordinating campus needs and projects can lower capital costs, and
functional obsolescence of space can bring capital resources to allocate for repairs
There is no reason to believe that these factors will change in the next 15 to 20 years. Therefore although we will need to act, we have time to manage the investments.
6
Make the Case for Resources
By controlling the things you can control
The old approach of defining needs in a way that makes the DM
problem bigger and then requesting money will not work.
Problem is too big to address in total – must break it down in size
and priority
Opportunities exist to… Lower Demands - Space Management
Make the Problem “Smaller” – Use Building Portfolio
Management
Sustain Impact of Finite Funding - Create Multi Year Plans
Mitigate Risk - Target Capital to Reliability, Safety/Code, and Critical
Asset Preservation Issues
Apply these actions to make the case for additional
funding and use savings to self-fund stewardship
Conclusion
8
Changing the Conversation
Strategies for success
Understand and communicate that not all buildings are created equal
Use building portfolios
Invest over time
Reallocate savings
9
Stay Current with Latest Trends and Best Practices
Let us keep you current, visit our Insights Page
If you haven’t downloaded
our report, The State of
Facilities in Higher
Education: 2015
Benchmarks, Best
Practices & Trends, please
go to sightlines.com to
download your copy today.
Sign up for our monthly
newsletter
Read our blog, explore our
content