The Facility Managers Guide to Budget Management

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Saving money is always a goal for facility managers, and sometimes, it’s more than just a goal, it’s a necessity. So how do you manage a tight budget?

Unplanned Service Calls
Avoiding unplanned service calls saves big dollars, because these calls are, well, unplanned. This means that there isn’t money (specifically) set in the budget for each of these calls and that your time and attention was most likely supposed to be dedicated to something else when they occur. First thing is to make sure you have “wiggle” room in your budget for unseen maintenance needs. Second, implement systems that help mitigate unnecessary efforts, such as a help desk and call center. Help desks can supply remote facilities basic troubleshooting steps that can resolve simple issues before a work order is created. Call centers can help walk employees through simple steps and also capture more information in the event that a work order actually needs to be issued.

Set Your Price
Prearranging prices for your predictable needs (such as landscaping) will make your budget more accurate and may get you a better deal. It will also help you predicted you unpredicted costs as well. Having a set price will let you estimate extra work that will come up throughout the year. Larger facilities may benefit from having pricing guidelines (such as appropriate price points, who has the authority to override, etc.) will help you stay within your budget and control your spending.

Warranties, Warranties, Warranties
This is so important that we had to list it three times. Cashing in your warranty will help you save unnecessary spending. Best practices for documenting and tracking warranty coverages is how a facility can avoid spending money on something that is covered. Be sure that when new construction projects occur that you file and update your warranty records. Warranty management is important for all facilities, but larger facilities will naturally have more warranties to track and this can add up to a lot of savings.

As an experienced facility manager, a lot of this will come naturally to you, but if may not come naturally to your team and other staff members. Addressing these three subjects on a regular basis will help you and your facility stay organized and focused, keep you within budget and on track to success!

3 Things Facility Managers Should Look for in New Construction Projects

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Not all facility managers have a background in construction, but odds are that you’ve have dealt with (or will deal with) a big construction project at your facility at some point. Knowing what to look for in the Project Manual can help ensure a successful project and prevent the project from going over budget.

Inspections

Structural construction must adhere to the International Building Code, and it requires the verification and inspection of work. It also requires the owner (or design professional) to employ the agency for the verification and inspection. You’ll want to make sure that you are budgeted to pay the cost for verification and inspection to avoid any surprises. You’ll also want to make sure that these specifications are written correctly and included in the project manual. Field quality control for elements of the building envelope and for building fenestration is also good practice!

Warranties

The specifications should call for certain warranties to be included, such as roofing systems. The warranties can vary, so carefully review to see what is included and what is covered by the warranty. At the end of the project make sure that all warranties are in submitted and recorded properly on your side. It’s important for you and your team to be aware of what is covered under warranty so that you don’t waste resources repairing something in the future.

Attic Stock

If you’re organization is a private entity, then the specifications should call for extra stock to be included. As you know, materials will become damaged or worn over time and having extra stock can help speed up the repair time while keeping a consistent look (nothing is worse than trying to match materials if you can’t get the original materials used). We use the term attic stock, but make sure that you have the proper location and conditions to store the extra materials.

Ensuring that these three items are included and that you have an understanding of exactly what is included will help set your facility up for a successful construction project!