Facility managers face tough decisions about building, renovating, or demolishing aging buildings and infrastructure. The need for increased operational efficiency, improved technology, and better financial returns further challenges these demands. So, how do facilities professionals make complex decisions about replacing or renovating aging buildings and infrastructure? In this blog, we'll explore the benefits and drawbacks of renovating and replacing aging buildings and infrastructure to help you make informed decisions.
As cities and towns worldwide continue to grow and expand, their infrastructure and buildings are aging rapidly. This poses a significant challenge for governments and communities as they must decide whether to renovate or replace these structures. While renovating existing buildings and infrastructure may seem more cost-effective, it can lead to ongoing maintenance and repair expenses. On the other hand, replacing older structures can be a significant financial burden on taxpayers and may not always be the best solution. So, how do facilities professionals make complex decisions about replacing or renovating Aging Buildings and infrastructure? In this blog, we will discuss five key areas to consider when assessing planning options regarding building, renovating, or demolishing aging buildings and infrastructure.
As buildings age, they go through a process of deterioration, which can be categorized into five life-cycle stages that correlate to asset renewal:
Facility managers must know when more extensive repair and maintenance issues will begin within each of these phases. David Albrice and the team at RDH conducted a study that found that during the “Adolescence” phase, buildings tend to experience the most extensive and expensive asset renewal projects. During this period, significant funds must be reinvested in the building. Therefore, facilities managers should prepare for upgrades as buildings approach the 30-year mark.
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It is less clear how to compute the cost of renovation against the cost of demolition and reconstruction. Several factors must be considered, depending on the severity of the problems. For example, awkward structuring, small spaces, low ceilings, or eroded foundations require partial or complete demolition.
All costs should be considered, including initial construction, phasing, financing, fees, and, most importantly, the long-term operational costs of maintaining the space. All too often, institutions only consider the initial costs of construction without analyzing the long-term implications of these decisions. Facility Capital Planning software can provide an easy and efficient way to manage life-cycle costing for aging buildings and infrastructure.
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The movement of people, materials, and vehicles in and around facilities should be logical, intuitive, and convenient. There should be a clear sense of entryways, adequate parking, a focal center of the facility, and an easily identifiable way to connect all the pieces.
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In addition to the physical layout of the facility, it is also important to consider the safety and security of those who use it. This includes measures such as well-lit areas, security cameras, and clearly marked emergency exits. By prioritizing both convenience and safety, a facility can provide a welcoming and efficient environment for employees, customers, and visitors alike.
What improvements or programs can expand reach and attract the best talent to ensure that your organization continues to grow? How can these programs be enhanced either through new or renovated construction? Will new technologies demand new space, or can they be accommodated in existing structures and their respective infrastructures?
In addition to expanding reach and attracting top talent, renovating or replacing aging buildings can significantly impact an organization's market share. Modern, well-designed facilities can improve branding and make a strong impression on clients and potential employees. Additionally, outdated buildings may not meet the needs of new technologies or contemporary work styles, hindering productivity and innovation. Renovating or replacing aging buildings is a crucial strategy for staying competitive and maintaining or increasing market share.
Ideally, buildings should strive to conserve energy, responsibly reuse materials, and be constructed on sustainable sites. Carefully selecting sites will preserve existing natural sites. Conducting a sophisticated assessment of building envelopes and integrating HVAC systems will require less energy to heat and cool, which is exponentially important over the life of the building. Additionally, a thorough review of materials and reuse will reduce initial capital costs while conserving the world's natural resources.
A growth plan should be in place that includes the facility's ability to adapt to changing circumstances. That is, there should be a logical method for expanding buildings and infrastructure that accommodates flexible planning and incremental growth. The growth plan should consider the organization's physical infrastructure, human resources, and technology needs.
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An expansion plan should include a strategy for recruiting and training new personnel and upgrading and maintaining technological systems to support growth. It is also essential to ensure that the organizational culture and values are aligned with the growth plan to keep a cohesive and motivated workforce. Regular assessments and adjustments to the growth plan should be made to ensure that it remains relevant and effective in achieving the organization's goals.
Facilities managers are experts in knowing the buildings and assets in their care. The best FMs will act before equipment malfunctions or buildings deteriorate and ensure that systems remain operational. Buildings, particularly those approaching the 30-year mark, will need to be updated to some extent, whether because of codes, regulations, or breakdown. The facilities manager is responsible for regularly assessing structures and assets to address and plan for needed upgrades.
Implementing facilities management and capital planning software will make caring for and maintaining an aging building stock much more accessible. Our FOUNDATION platform helps facility managers from condition assessment to capital planning, empowering the institution to get the most value from its physical assets. Schedule a discovery call with our team to learn more about software for facilities capital planning.
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Sources and Further Reading
Albrice, David, "How Long do Buildings Last," RDH Blog, https://www.rdh.com/long-buildings-last/.
Blackburn, Steven, "Inside Look: Repurposed buildings for higher ed," University Business, https://www.universitybusiness.com/article/inside-look-repurposed-buildings-for-higher-ed.
Greim, Clif, "School Choice: Build New or Not," Building Operating Management, https://www.facilitiesnet.com/educationalfacilities/article/School-Choice-Build-New-or-Not--2639.
Mead, William, "Renovate or replace? Advice on making the billion-dollar decision," Health Facilities Management, https://www.hfmmagazine.com/articles/912-renovate-or-replace.