Professional Engineers Of North Carolina

SPR 2014

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11 Spring 2014 the Professional Engineer to the life cycle of a building, the $5 million building referenced previously would cost $70 million over the total life cycle, an increase of nearly 40%. Te observed reality is that deferred or ignored maintenance does not reduce life cycle cost. Instead, ignored repairs can lead to an operational work- around. For example, a variable speed drive on a fan or pump fails, and the building loses heating or cooling capability. To quickly address complaints, a maintenance technician switches to manual bypass, and operates the equipment at full speed rather than make the necessary repair. Tis work-around alleviates the immediate temperature issue but bypasses one of the most efective energy-saving measures available for an air-conditioning system. Repairs of this kind create poor system performance and increased operational costs. Perhaps more importantly, not operating equipment as it is designed increases the likelihood of premature failure. As noted above, early failures resulting in emergency repairs can have exponential cost implications. Hidden effects Te above examples demonstrate how deferred maintenance and unfunded R&R signifcantly increase both the operational and life-cycle costs of buildings. In many cases, additional efects arise that are more difcult to quantify but are very real. Some may include: • Lost hours/productivity from occupants or employees • Lost revenue from reduced operating hours during emergency repairs • Incidental damage • Lost research/inventory • Overworked maintenance staf Additional public welfare concerns arise when extending these efects across an entire building inventory, such as that of North Carolina, including: • Spread of contaminants in public spaces (e.g. dust, mold, viruses through faulty HVAC systems) • Reliability of safety systems in an emergency (egress and exit lighting, emergency generators) • Adverse working/learning environment (public schools, community colleges, universities) Te ultimate question is who sufers from lack of maintenance and R&R funding? Report card How does the state government of North Carolina stack up to industry standards for funding R&R projects? Te recommended annual maintenance and repair cost needs of a typical building range from 2% to 4% of the replacement cost of the buildings . With potentially a $21 billion building inventory, North Carolina's optimal annual repair and renovation budget would be $630 million . Te budgeted funding for this year and next is $150 million — only 0.3%. Unfortunately, the state is failing to address the Initial delivery Initial install Replace # 1 Replace # 2 Replace # 3 R E L AT I V E C O S T T I M E ( Ye a rs ) $400 300 200 100 0 5 10 15 20 25 30 3 5 4 0 Life cycle delivery CostNothing_Spring14.indd 11 3/27/14 11:32 AM

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