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3 The Maintenance and Repair Component of the Cost of Ownership
Pages 17-20

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From page 17...
... In general, the following factors can have a major influence on the appropriate level of M&R expenditures: Building size and complexity Types of finishes Current age and condition Mechanical and electrical system technologies Telecommunications and security technologies · Historic or community value · Type of occupants or users · Climatic severity · Churn (i.e., tenancy turnover rates) · Criticality of role or function 17
From page 18...
... Typical maintenance expenditure per square foot is frequently used as a yardstick for determining what an appropriate level of M&R budgeting should be, but such a measure is insufficiently sensitive to either external financial conditions or building characteristics. The relationship is better stated in terms of an annual percentage of the inventory's current replacement value.
From page 19...
... If an inventory of buildings receives an adequate level of M&R funding, a steady-state situation should exist wherein the inventory would remain in a service condition that would neither decline nor improve and a backlog of deferred deficiencies would not develop.~3 However, if a backlog exists, it is unlikely to be reduced by expenditures limited to the 2 to 4 percent level. Further deterioration will occur if the backlog is not reduced, and the ultimate cost of correcting the deficiencies will increase.
From page 20...
... If the backlog has been eliminated, maintenance spending may be reduced to levels truly required to maintain adequate facility performance. Escrow or set-aside accounts may be established to preserve funds budgeted but not actually expended in a given year due to favorable use conditions (e.g., warmer or drier than average weather or lower than typical utilization)

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