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(OWN-2433) Strategic Budget Allocation Model for Deferred Maintenance

Level: Advanced
Author(s): Soojin Yoon; Dr. Makarand Hastak, PE CCP
Venue: 2017 AACE International Annual Meeting, Orlando, FL

Abstract: Over the past several decades, many universities in the United States have been challenged by the lack of funding for maintenance, rehabilitation, and repair (MR&R), especially including deferred maintenance (DM). The DM backlog has been caused by budget limitations and inappropriate MR&R strategies for facility management. As a result, facilities have prematurely reached unacceptable conditions that require renovation or demolition. This research proposes a systematic procedure for optimal budget allocation for DM for universities that can also be used by private companies and federal/state/local government agencies. The specific objectives of this research are to (1) classify emerging DM issues and budget models, (2) evaluate budget leveling for a multiyear period, (3) establish total packaged prioritization, and (4) optimize DM budget allocation(s). The proposed strategic decision-making process for DM budget allocation would help multi-asset facility administrators establish long-term budgetary goals and enhance the asset value of their campus facilities. This paper illustrates the procedure and the results obtained.