Facilities Insight: Prepare Your Capital Budget Before Budget Season
Capital budget season shouldn’t be the first time you start thinking about what your facility needs.
If you manage a building, now is the time to start building your list.
A good capital budget starts with knowing what you have, what condition it’s in, how long it should last, and what it will cost to replace or improve.
Start by walking your facility and looking at the major systems and assets:
Roofs and building exteriors
HVAC equipment
Boilers and water heaters
Electrical equipment
Plumbing systems
Life safety systems
Kitchen and food-service equipment
Flooring and interior finishes
Parking lots and site infrastructure
Major equipment and vehicles
Then ask a few basic questions about each one:
How old is it?
What condition is it in?
Has it been repaired repeatedly?
Is it still supported by the manufacturer?
How long do you reasonably expect it to last?
What will it cost to replace?
From there, start separating your needs into timeframes. What needs attention in the next year? What should be planned for the next three to five years? What can reasonably wait longer?
You don’t need every number to be perfect at this stage. You need a reasonable plan based on the information you have.
Most importantly, don’t build your capital budget from memory.
Use your asset inventory, maintenance records, work orders, inspection reports, contractor recommendations and previous projects to support your decisions.
A capital budget should be more than a list of things you want to buy. It should tell the story of what your facility needs, why it needs it, when it will likely be needed, and what you expect it to cost.
Start building that information now, and when budget season arrives, you’ll be prepared rather than scrambling to create a list.
Need some help getting started?
If you’re struggling with your capital budget or just want to talk through your approach, feel free to email me. I’m happy to share what I’ve learned from managing capital planning in real-world facilities.
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