Costs of Maintaining a Facility

A building's operating cost over its life cycle is on average approximately 80 percent of the total initial cost to build and far outweighs the initial 20 percent investment to construct it (Figure 7.1). Yet, a building's operating costs and management are regarded as necessary, not areas that could provide potential savings. Additionally, the high environmental costs associated with reducing pollution emissions and vacancy costs associated with poor overall occupant health are additional costs that face today's facility owner. In fact, more than 80 percent of facility owners in a recent study found that owners are budgeting for green initiatives and energy savings in their facilities (source: www.facilitiesnet.com/news/article.asp?id=10192) to reduce these additional factors. It's interesting in the current construction industry just how much of the focus is on the first cost of design and construction as opposed to the enduring cost of facility operations. The opportunities to design buildings to be more efficient, build them to healthier standards, and maintain them to the best operating standard is becoming more critical in today's economy. Especially if you consider the impact even a small annual savings would have when multiplied by the years the building is in use.

Figure 7.1: Average life cycle cost of a building

Rising energy costs, material replacement, and tenant turnover are just some of the challenges a building owner faces. Facility managers and building...