WHAT A FACILITY CONDITION ASSESSMENT?
Whether you are a building owner, investor, prospective buyer, facility manager, or government entity, it is crucial to have an accurate and thorough understanding of the condition of your properties in order to maximize your investment. More specifically, common uses and benefits of FCAs include:
Establishing a building’s total replacement cost.
Determining the remaining useful life of all major building systems, components, and assets.
Identifying major and minor system deficiencies.
Providing an estimated cost for each system and/or component replacement.
Combining condition data with financial analysis to identify facility financial priorities.
Driving successful capital improvement planning and budgeting.
Prioritizing building repairs to maximize operational efficiency and reduce downtime.
Identifying the root causes of deterioration.
Extending asset lifecycles.
Evaluating how well facilities are meeting the needs of its occupants.
Furthering energy management and sustainability goals.
This sounds like a Property Condition Assessment. Are they the Same?
No. A facility condition assessment is different from a property condition assessment (PCA). A PCA is performed prior to selling a property, in order to give the new owner an idea of any potential repair costs. It is a breakdown of the condition of the property at that exact point in time, performed so that both the buyer and seller know what to expect.
Facility Condition Assessment vs. Property Condition Assessment
Facility Condition Assessment: Looks at the physical condition of a facility and its equipment in order to help optimize and maintain the physical condition and value of the assets, develop capital budgets, and prioritize resources.
Property Condition Assessment: Evaluates a real estate asset to identify the costs associated with correcting existing deficiencies. It is typically performed as part of the due diligence process for a commercial real estate property transaction. For a detailed guide and baseline of the PCA process, visit ASTM’s Standard Guide for Property Condition Assessments.