Information Overload
July 2014

July 2014 – What an awesome month of FIFA World Cup soccer, along with an exciting final match between two great teams that was only decided in the last few minutes of extra time. Now only a couple of more months of road construction until hockey begins...

Welcome to this month’s newsletter. As always, we look forward to your thoughts and comments.

Regards,
Ernie Paustian
Ernie Paustian


Building Maintenance

We get to read through a large quantity of meeting minutes, and often meet with Board members during the Reserve Fund Study process. From this we’ve noticed that most Board members think they understand the importance of preventative maintenance. However, it’s also apparent that while they may understand maintenance is required, it doesn’t always mean that the maintenance actually occurs – usually it’s a short sighted decision based on cost. Or perhaps it’s a misunderstanding on what actually constitutes maintenance?

Maintenance programs assist in preserving assets by keeping things running in optimum condition. Maintenance also helps insure that maximum life expectancy is achieved and can assist property and building managers to anticipate component failure. It also ensures that a budget is in place for replacements, along with the work being planned to be completed at more convenient times. Because of this, a good preventative maintenance plan is generally a more predictable and cost effective way to operate.

Essentially, there are three main styles of preventative maintenance programs; Reactive Maintenance, Preventative Maintenance and Predictive Maintenance.

Reactive Maintenance: Is the “maintenance plan without really having a plan”, where various components are repaired or replaced once they have failed, also known as run to fail.

Preventative Maintenance: Is a maintenance plan that consists of tasks and formal procedures that assist in preventing unplanned breakdowns of components, along with ensuring that equipment is operating properly. Reactive and Preventative Maintenance - or a combination of the two maintenance styles are most commonly used for Condominium Corporations.

Predictive Maintenance: Is rarely used for Condominium Corporation maintenance, most likely because of higher initial costs. Predictive Maintenance is the most intensive maintenance style, as the tasks involved assist in indicating how quickly a component is failing. Predictive maintenance can provide clues that indicate the cause of component failure, along with ways to slow or eliminate the failure rate. Studies have shown that despite higher initial costs, Predictive Maintenance typically saves money over the long term.

Future newsletters will provide more information on the various maintenance styles, how maintenance (or the lack thereof) affects costs and estimated replacement of components within the Reserve Fund Study, along with advantages and disadvantages of each maintenance style.

Thank you for taking the time to read our newsletter. At Delta Appraisal, we work with Property Managers and Board Members to set realistic budgets and to prioritize maintenance and repair projects. Our functional Reserve Fund Studies are unbiased. We are not competitors in property management or maintenance.

For more information about Delta Appraisal and our easy to read Reserve Fund Studies or to request a no-cost, no-obligation proposal, please contact us.

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