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The True Cost of Deferred Maintenance

Lauren Clapper
  • Nov 09, 2017
  • 3 minutes

See how capital planning and maintenance go hand in hand

Do you have deferred maintenance? If you do, you’re not alone. There are a variety of reasons that these tasks pile up, but one thing is universal: This backlog of work that is put off for a future date accumulates. The result is that you actually may end up spending more later on, and this can have a negative effect on your members.

When you don’t perform routine preventive maintenance (PM), those tasks that were repairs or proactive work can quickly evolve into a replacement. Sure, it’s easy to keep track of big assets like HVAC units or plumbing, but what about the small items that can fall through the cracks? We’ve previously covered how easy it is to accidentally overlook something and have it ruin a members’ experience – but the true cost is much more damaging in the long run than many of us realize.

What Does It Cost?

State-of-the-art equipment, photo-ready interior design and brand-new assets are great ways to attract new members and support the club. However, if you’re not putting aside money for the actual maintenance of the buildings, it’s not realistic to expect that these amenities will stay in pristine condition forever. In fact, you can be certain that the investment you’ve made will deteriorate quickly.

An article by Facilities Net recently estimated that the cost of replacing an asset can actually be 30 times the cost of the initial repair. This means that even though putting off an initial repair may save you money, in the long-term it will be much more harmful for your budget. What could have been the cost of a half-hour of employee manpower could be extremely expensive and become a drain on your resources.

PM and Capital Planning

If you already have a computerized maintenance management system (CMMS), you’re well on your way to developing a plan for success with regular PM schedules. It’s important to continue to do this work and use the data you collect on work orders to find new ways to proactively work and, in many cases, actually prevent an asset’s failure altogether. But if you’re doing PM without capital planning, the work will be for nothing.

The fact of the matter is that maintenance has a dollar value attached to it, so why not make it a part of your capital forecasting? With PM you can accurately determine what assets will fail and when based on historical work order data. If, for example, you know that your water heating unit is reaching the end of its useful life, you can work in the cost of a replacement unit into that year’s budget, even if it’s years in the future. By having an accurate picture of your work orders in a CMMS, your capital planning will be much more accurate.

To learn more about how capital planning and a CMMS go hand in hand, reach out to us and we’ll show you in less than half an hour!

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