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Pages 27-28

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From page 27...
... 10/1275 of the replacement costs of the 50-year systems" (Phillips, 1986~. The total facility renewal backlog is the sum of each year's renewal allowance from the time of completion of the building to the present.
From page 28...
... However, the similarity did support the reasonableness of the approach and the viability of the mode} as a forecasting tool, and further analysis, by subsystem, was performed." The analysis iclentif~ed a number of adjustments that could improve the model's performance, including modifications/additions of certain subsystem categories and "an acknowle(lgement that facility obsolescence due to program reasons also needs to be considered." In this review the authors concluded that the experience at Stanford University demonstrates the "model can provide accurate estimates of both deferred maintenance and future plant renewal needs." Key features of the approach include: · An executive-level view of facilities renewal that is grounded in sound theory and industry standards. This statistical approach accurately predicts both current deferred maintenance and future facilities renewal needs.

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