This figure is of more value when maintaining facilities than other types of plant or equipment. It is used as a unit cost measure applied to the overall facility size itself. This figure is often referred to as a benchmarking figure although its use in that area is possibly less useful than many other measures.

Benefits- This measure gives owners an overview of the unit costs of facilities maintenance. Often facilities management is found in industries where nothing is actually produced and company income comes from the rental or sales of parts of the facility. As such, this figure can give a good internal benchmark of the costs of the maintenance regime. It can indicate the success of various initiatives in the area such as outsourcing.

Limitations- This measure has two particular limitations. The first is that this measure can at times be used to drive down maintenance costs to a level where it is no longer effective. As with other measures of its type, there is a need for an understanding of what are the minimal levels of maintenance for this area.

The second drawback of this measure is in the continual attempts to use it as a benchmarking measure with other companies. Costs within this measure will vary wildly depending on the types of facilities being maintained, their overall size and their location.

Producing This Measure- Facility management companies that have the...