A facilities worker inspects equipment on a roof.
A facilities worker inspects equipment on a roof.

Facility Condition Index

A building will require inspection from time to time to check its overall condition. This goes for facilities of all kinds, from educational institutions to commercial buildings and residential facilities.

While there are multiple metrics you can use to determine building condition, the facility condition index (FCI) is a popular choice for management teams because of its simplicity and capacity for creating a foundational idea of asset management deficiencies.

What is a facility condition index?

The facility condition index is a tool used to gauge the physical condition of a building system or facility. It’s represented as a percentage and is computed by taking the expected cost to bring the facility up to acceptable standards (by means of repairs, etc.) and dividing it by the total replacement value. The resulting figure will land as a decimal somewhere between 0 and 1 to reflect the overall condition of the facility.

Facility managers widely utilize FCI to make informed decisions regarding maintenance, budgeting, and upgrades. A high FCI may indicate the need for major repairs or improvements, while a low score means the facility is well-maintained and in good shape. FCI plays a crucial role in maintaining the functionality and safety of a facility and helps in making informed decisions about upkeep, upgrades, and capital improvement.

Suppose we have a building with a replacement value of $1,000,000. The estimated cost of repairs and renovations to reach reasonable benchmarks is $150,000.

The Facility Condition Index can be calculated by dividing the estimated cost of repairs and replacements by the replacement value, then multiplying by 100.

FCI = ($150,000 / $1,000,000) * 100 = 15% or 0.15

So, this building’s FCI is 15%. This means the estimated cost to bring the facility up to an acceptable standard is 15% of its replacement value. In this case, the building has a low FCI, which means it’s in good physical condition.

Maximizing FCI level’s effectiveness

So where do you want your facility to be on the FCI scale?

A good FCI level typically falls between 0.0 and 0.2 on a scale of 0 to 1. An FCI score of 0 indicates that a facility’s assets are in excellent condition with little to no maintenance needs; a score of 1 suggests that they’re in very poor condition and may require immediate attention. The ideal FCI level can vary depending on the specific industry, asset types, and facility goals.

Your organization can maximize its FCI effectiveness by:

  • Prioritizing regular maintenance and capital improvement projects
  • Conducting regular FCI assessments
  • Leveraging technology to improve operations

By implementing these strategies, organizations can maximize the effectiveness of their FCI level, improving the overall condition of their facilities and ensuring they are operating at their fullest potential.

An FCI score chart shows that a facility condition index between 0-5% is good and requires minimal maintenance, between 5% and 10% is fair, greater than 10% is poor, and anything greater than 30% is critical.

Calculating the estimated cost of repairs and replacements

A facility condition assessment (FCA) can play a key role in calculating condition ratings. An FCA is a comprehensive evaluation of a building’s or facility’s physical condition, systems, and components. Similarly, an asset condition assessment (ACA) measures individual pieces of property and typically involves a visual inspection, testing, and analysis of each piece of equipment to generate a report detailing the condition of each asset and any recommended maintenance or repair actions.

The information gathered during an FCA or ACA can be used to determine the estimated repair and replacement cost needed to carry physical assets to acceptable standards. This data can then be used in the FCI formula by the facility’s management team.

What are the impacts and risks of a high FCI?

A high FCI level can result in:

  • Increased maintenance costs
  • Reduced safety and functionality
  • Non-compliance with regulations
  • Decreased financial viability
  • Damaged reputation and image

It’s important to monitor and address FCI levels as part of your asset lifecycle management to minimize these risks.

Leveraging capital planning software to improve FCI

FMX capital planning software displays total forecasted replacement costs, estimated replacement cost per equipment type, and a bar graph of top equipment by maintenance cost.

Capital planning software can be an invaluable tool for building maintenance. By using the software, organizations can gain a comprehensive view of their facility assets, including their age, condition, and estimated remaining useful life. This information can be used to prioritize maintenance and capital improvement projects based on a facility’s condition score, which takes into account assets’ current conditions and maintenance history.

Additionally, capital planning software can help in optimizing maintenance spending by providing cost estimates for upcoming projects, allowing organizations to make informed decisions on capital allocation. It can also aid in long-term planning by providing a roadmap for capital improvements and maintenance needs based on a variety of metrics.

Find out more about how facilities management software can aid in facility condition assessments and help improve your facilities’ FCI.

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