This document discusses strategies for managing deferred maintenance. It begins by defining deferred maintenance and outlining its impacts, such as higher costs and asset failure. It then discusses how to quantify deferred maintenance liabilities using condition assessments and cost estimation models. The document presents approaches like preventative maintenance, repair maintenance, and capital renewal to avoid accumulating deferred maintenance. It emphasizes using life cycle cost data to efficiently plan and budget maintenance activities. Lastly, it presents job order contracting as an effective method for executing deferred maintenance programs in a timely manner.

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SURVIVING DEFERRED
MAINTENANCE:
Take Back Control of Your Facility
Lisa Cooley, LEED AP, Director Federal Solutions at RSMeans from
The Gordian Group
Phil Waier, PE, Principal Engineer Emeritus

2. CEUs & CFM® Maintenance Points
You are eligible to receive Continuing Education Units and Certified Facility Manager® maintenance points for
attending sessions at IFMA’s World Workplace.
To receive CEU points, you must add the US$15 processing fee to your registration. (Full Event PLUS!
registration includes the CEU processing fee.)
To Receive 20 CFM Maintenance Points
Record your attendance for the three-day conference on your CFM Recertification Form in CAMP.
At re-certification time, submit your completed CFM Recertification Form.
Managing CEUs:
• Log into the Attendee Service Center. http://tinyurl.com/p6y4fxb
Your log-in information was sent to you when you registered for the conference.
• Click “Start CEU Process” on the left-hand side.
• Click “Start” next to the session you attended.
• Complete the session evaluation.
• Click “Start Test” next to the session.
After passing the test, your certificate will be available for download.
**If you wish to receive CEUs or LUs from other organizations, you must contact those organizations for
instructions on reporting credit hours.

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Meet Our Presenters:
Lisa Cooley, LEED AP
Director of Federal Solutions at The Gordian Group
Phil Waier, PE, LEED AP
Principal Engineer Emeritus

5. Review Session Learning Objectives
LEARNING OBJECTIVE 1
Attendees will learn about the factors that contribute to
deferred maintenance.
LEARNING OBJECTIVE 2
Attendees will hear how data can impact deferred maintenance
throughout the construction process.
LEARNING OBJECTIVE 3
Attendees will identify the appropriate data for particular stages
in the construction process.
LEARNING OBJECTIVE 4
Attendees will learn how applying this data can alleviate and
prevent deferred maintenance.

6. DEFERRED MAINTENANCE
• The practice of postponing maintenance activities such as
repairs on both real property (i.e. infrastructure) and
personal property (i.e. machinery) in order to save costs,
meet budget funding levels, or realign available budget
monies.
• The failure to perform needed repairs could lead to asset
deterioration and ultimately asset impairment.
• Generally, a policy of continued deferred maintenance may
result in higher costs, asset failure, and in some cases, health
and safety implications.
• Deferred maintenance is defined as any repair that does not
occur at the scheduled time.

7. NEVER PUT OFF UNTIL
TOMORROW WHAT YOU CAN
ACCOMPLISH…
…today.
- Lord Chesterfield

8. NEVER PUT OFF UNTIL
TOMORROW WHAT YOU CAN
ACCOMPLISH…
…the day after tomorrow.
- Mark Twain

9. IMPACTS TO BUILDING AND
EQUIPMENT
1/3

10. COST IMPACT OF DEFERRED
MAINTENANCE
Geaslin’s Inverse-Square Rule for Deferred
Maintenance

11. THE COST OF DEFERRING
MAINTENANCE
15x

12. CAUSES OF DEFERRED
MAINTENANCE

13. MORE ASSET MANAGEMENT
DEFINITIONS
• Capital Renewal
• CRV (Current Replacement Value)
• FCI (Facility Condition Index)
• FCI is used to:
– Inform resource allocation decisions
– Calculate catch-up costs
– Establish KPIs
– Track condition drift over time.
FCI = DM
CRV

14. ONGOING FACILITY
INVESTMENTS AFTER INITIAL
CONSTRUCTION
Preventative
Maintenance
Repair Maintenance Cyclical Component
Replacement
Capital Renewal
Any of these can be deferred

15. APPROACHES TO
QUANTIFYING DEFERRED
MAINTENANCE
Condition Assessment
Deficiency-specific
Thorough but labor intensive and
expensive
Parametric Approaches
Facilitates asset management with
fewer resources
Relies on models and owner
understanding of building assets

16. HOW COST DATA CAN HELP
1. Quantify deferred maintenance liabilities through
accurate estimates
2. Provide a basis for efficiently modeling Current
Replacement Value
3. Building life cycle costs to allow for accurate
budgeting
4. Guide a program of preventative and repair
maintenance which can avoid deferred maintenance
5. Provide a pricing for efficient execution of deferred
maintenance programs through Job Order
Contracting.
Different cost data types for different purposes!

17. Information Sources
Unit Prices
Assemblies
Models
STRUCTURE OF RSMEANS DATABASE
Calculate CRVs
Estimate deferred maintenance costs
Detailed project-
specific estimates
FMR

18. CASE STUDY:
DEPARTMENT OF ENERGY
• Prompted by Executive Order 13327 in 2004, DOE
invested in CAIS (condition assessment information
system) and FIMS (facility information management
system) powered by standard and customized
RSMeans data
• Developed a suite of standard and highly customized
models to efficiently ascertain CRV of 127M SF at 50+
sites
• Applies FMR data to predict life cycle costs and funds
needed to support facility management and report to
congress
• Continuous development of program

19. COST DATA FOR ASSET
MANAGEMENT
Facilities Maintenance and Repair
• Maintenance & Repair
– Repair maintenance
– Capital Renewal
• Preventive Maintenance
• General Maintenance

20. REPAIR/REPLACEMENT
MAINTENANCE

21. CAPITAL RENEWAL

22. PREVENTATIVE
MAINTENANCE

23. STOP DEFERRED
MAINTENANCE BEFORE IT
STARTS
• Estimate deferred maintenance costs in the most
effective way possible with accurate cost data
• Create a maintenance schedule with RSMeans Life
Cycle Costing data
• Plan/budget for 5, 10, 20 years with RSMeans data

24. LIFE CYCLE COSTING (LCC)
ASTM Definition: An economic method of evaluating a
project in which all costs arising from owning, operating,
maintaining and disposing of the project are considered.
These costs are added over the life of the project. All costs
are converted to present values.

25. OUR LCC DEFINITION
An economic method of evaluating a project’s preventive
maintenance, repair maintenance and capital renewal
costs. These costs are added annually over the life of the
project or a specific time frame.

26. LIFE CYCLE COSTS
• Life cycle costs are based upon:
– Type of structure
– Building’s equipment

28. LIFE CYCLE COST DEMO

29. TACKLE DEFERRED
MAINTENANCE WITH JOC
Job Order Contracting (JOC) is:
• A firm priced, competitively bid, indefinite quantity
procurement process
• Primarily used for repair, alterations and minor new
construction projects
• A fundamentally different construction procurement
relationship
– Contractors are subject to different motivations and
behaviors
– Non-adversarial relationship between owner &
contractor
• Brings a programmatic, data-based tool to deferred
maintenance execution

30. CONSTRUCTION
TASK CATALOG®
Different than the data used to estimate deferred maintenance
• Actual, local costs of work items needed for deferred maintenance
program
• Customized technical specifications for each task
• Quantity breaks and demolition costs

31. DEFERRED MAINTENANCE
EXECUTION EFFICIENCY
• Faster procurement – weeks instead of months
• Based on owner-contractor partnership = non-
adversarial relationship

32. CASE STUDY: HOLBROOK
UNIFIED SCHOOL DISTRICT
• Security/Safety Updates
• Short timeline
• Traditional procurement
process not possible
• With JOC:
– Construction Started
in May
– Construction
Completed Mid-July
Holbrook Junior High School

33. IN CONCLUSION
• Life Cycle Cost Data can prevent deferred maintenance
before it starts
• Use assemblies and unit Cost Data to estimate deferred
maintenance
• Expedite those repairs with Job Order Contracting

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