How to Budget for Commercial Building Maintenance and Repairs
Commercial buildings require a significant investment, both in terms of finances and time. One critical aspect of commercial building ownership is maintenance and repairs. Being able to manage these costs can make all the difference in avoiding costly breakdowns and prolonging the lifetime of building systems. In this article, we guide you through important steps towards budgeting for commercial building maintenance and repairs.
Create a Maintenance Calendar
One of the most critical steps towards successful building maintenance is creating a maintenance calendar. Regular maintenance can prevent costly repairs down the line, making it key to include critical systems like HVAC, plumbing, and electrical in your maintenance calendar. Also, try to schedule maintenance during slow seasons to avoid any disruption of business activities.
Budget for Preventative Maintenance
Putting off repairs in your commercial building might seem like the easy answer, but the cost of waiting can be much higher. In the long run, regularly booking maintenance checks, even when there are no issues, will help you ensure that preventative measures are taken. Creating a preventative maintenance budget might seem costly, but it will save money over time. When creating your budget, be sure to factor in variables such as preventative maintenance costs/schedules and component degradation rates for each piece of equipment in the building.
Create Contingency Funds for Emergencies
It’s essential to have contingency funds for unexpected repairs – emergencies can be expensive! A good rule of thumb is to set aside around 10% of your total maintenance budget for contingencies. Think about using insurance to mitigate the risk of unexpected costs. Commercial property owners can purchase a policy that’ll help you stay prepared and financially stable in case of unexpected problems or disasters.
Prioritize Repairs
Part of budgeting for maintenance and repairs includes prioritizing repairs. Start by defining what is considered critical within the building – systems that must function to keep the building open safely. When reviewing the priority list, consider safety and compliance along with maintaining long-term benefits. You may even find that repairs deemed critical by others may not align with their actual impact on the building.
Knowing When to Replace
Sometimes the cost of repairs becomes too high, and the best option is to replace the equipment altogether. Planning and budgeting for larger expenses is important when preparing for commercial building maintenance and repairs. When faced with a repair vs replace dilemma, consider factors such as the upfront cost of replacing the entire system, the cost of maintaining and repairing the existing system, and the benefits of upgrading to longer-lasting, more energy-efficient systems.
To read more about this topic, check out previous blog post at Maximizing the Value of Your Commercial Building with Proper Maintenance
For more general information on building then please visit: https://www.building.vic.gov.au/
Commercial building maintenance and repairs can be overwhelming. Still, by taking it step by step, starting with a maintenance calendar, creating a preventative maintenance budget, having a contingency fund for emergencies, prioritizing repairs, and knowing when to replace equipment, you can take control and ensure the longevity of the building systems.
