Webinar Series
The ABCs of BCAs: Their Value in Asset Management and Planning Bill Bacon, DpIT, CET, PMP Senior Technical Project Manager, Technical Services Dept, Housing Services Corporation October 28, 2015
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Bill Bacon: Senior Technical Project Manager
About this Webinar: � Increasingly, housing providers across Canada are using a Building Condition Assessment (BCA) as a trusted resource to effectively manage aging assets and to make informed decision-making about capital planning. � This webinar intended to demonstrate how to move from a reactive to a planned asset management approach using a Building Condition Assessment (BCA).
Outline � The BIG PICTURE - capital planning and why it matters � Building Condition Assessments (BCA)- what, why and how � Using and Interpreting the BCA � Updating Existing BCAs � “I need HELP”
What is involved in managing assets? THE BIG PICTURE: Typical stages in the lifecycle of an asset
Decision making model for capital projects 1 Evaluate needs and priorities - assess planned and unplanned capital needs, prioritize projects 2 Establish annual plan - assess project options and develop formal plan with regard to available funding, risks and capacity 3 Implement plan - execute projects or defer projects with associated monitoring, revise capital needs list accordingly
What do I need to get started? To help establish your comprehensive capital plan, you will need 3 key ingredients: Building Reserve Fund Condition Energy Audit (EA) Forecast (RFF) Assessment (BCA)
What is a Building Condition Assessment? • It is a technical inspection of your building and its individual components that assesses the future maintenance needs of a project; usually involves: � a walk-through of the building and property � a review of maintenance history and drawings � discussions with key staff • Undertaken by competent assessors and/or a qualified technical advisor • Can be done visually or by using computer based models (or a combination of both)
Value of a BCA � Essential in keeping facility managers in control of their facilities. � Assists in planning for major expenditures within a certain timeline. � Provides information required to develop a capital repair reserve fund. � Minimizes pre-mature asset failures, shorter useful asset lives, higher repair and replacement costs that can impact capacity and quality (health, life, safety).
Important is mitigating unnecessary exposure to legal, social and other risks associated with deteriorated facilities, statutory non-compliance and hazardous materials.
A building condition assessment is not the same as a technical audit. Technical audits look for construction and design defects. They usually involve “destructive testing” to inspect in and behind walls and ceilings, and are much more expensive.
What a BCA provides? For the building and its major components, a BCA provides reliable and objective details on: Current condition Serviceable life rating remaining When repairs or An estimate of replacements will costs for the future be required repairs or moving forward replacements
What a BCA provides? � forecasts replacement needs over the extended operating period of the building (up to 30 years) using standard useful life estimates � estimates capital costs for replacement/repairs, identified for each element and rolled up to help provide a cumulative annual picture of projected costs over time � estimates typically valid for up to 5 years from initial inspection, so it should be updated every 3-5 years to ensure that the BCA continues to reflect actual conditions � by using standard templates, the base projection of the BCA can be refreshed every 5 years, enabling the capital plan to remain a valuable and reliable tool for managing assets over time
What a BCA doesn’t provide… • Estimates of other costs that may need to be incurred i.e., � Soft costs related with design, tendering, permits etc. � Consequential costs i.e., removal of roof top equipment to repair roof � Cost of inflation Caution: Estimates on near term costs will be more accurate than longer-term forecasts and this should be taken into account.
Requirements to conduct BCA � Commission/ engage competent assessment firm (RFP) � Provide assessors: – Full access to building and all building components – Building construction drawings and specifications – Details of any renovations/changes/alternations made to facility – Maintenance records- especially anything that suggest repeat problems in units – Any compliance orders by Authorities Having Jurisdiction – All existing warranties, guarantees and service contracts • Assessor will inspect your building. There is no need to look at every single items. Unless you are doing a more complete inspection to create benchmark data for your maintenance program, a sample will do.
If you ask your staff to do this job, be realistic about the amount of work involved. It can take up a lot of time. That could take away staff time from other essential work for your organization.
What is in a BCA report? � Introduction (general descriptions, purpose, scope of investigation) � Terms of Reference (Authorizations, investigation procedures, limitations) � Observations/ Condition Analysis (roof, exterior windows, interiors, landscaping, mechanical systems, electrical systems) � Financial Analysis (Reserve fund study projections) � Conclusions and Recommendations � Appendices � Capital Replacement Study Table � Capital Replacement- 20 year schedule
What’s not in the report? Don’t expect: � A report on every item in your building. Capital items that are meant to last the life of the building, such as foundations, won’t be covered unless the assessor spots a structural problem- or you point one out. � A discussion of routine repairs and maintenance. Your report won’t talk about these things except to suggest preventive maintenance to make capital items last longer.
A good report should give you an opinion on your building’s general condition and note any problem areas that may need in-depth testing. It should also tell you about any building code changes that will mean upgrading when you change a capital item, rather than just staying with the same quality as before. Your report should also suggest ways you can save money, such as: • preventive maintenance practices – ways of looking after capital items to make them last longer • less expensive replacement items that could work just as well as the original items • where higher-quality replacements can save you money in the long run • When it is cheaper to replace a capital item than keep on repairing it, even if the item is still working.
Using and interpreting the BCA � Look for priority issues i.e., Life Safety, Structural Integrity etc. � Develop action plans to address issues based on their priority SAMPLE PRIORITY RATINGS PRIORITY A Life, Safety PRIORITY B Structural Integrity PRIORITY C Legislative Requirements PRIORITY D Building Functionality PRIORITY E Cost Effective Upgrades
Using and interpreting the BCA � Look for critical or poor conditions that require attention: � Prioritize, and develop action plans to address required repairs or replacements � Consider synergies where practical SAMPLE CONDITION RATINGS GOOD Like new condition, no work or maintenance required FAIR Working condition with some maintenance or minimum work required POOR Replacement or major report work required CRITICAL No longer working or failure is imminent
Using and interpreting the BCA � Look at Repair and Replacement Schedule (costs and timelines) � Develop a plan (Reserve Fund Forecast) to ensure monies required for the forecasted repairs and replacements is available when needed
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