How to Calculate Facility Condition Index?

If you manage buildings, whether a single facility or an entire portfolio, knowing their condition is essential for making informed decisions. One of the most reliable ways to assess this is through the Facility Condition Index (FCI). This simple but powerful metric helps organizations figure out how well their buildings are holding up and where maintenance or investment is needed.

Facility managers, finance teams, and decision-makers use FCI to prioritize repairs, plan budgets, and ensure that facilities remain safe and functional. It provides a clear picture of whether a building is in good shape or requires significant attention, helping organizations make smart choices about maintenance and upgrades.

In the next sections, we are going to take an indepth look at what is FCI and how to calculate it. Without waiting further, let’s get started.

What is a Facility Condition Index?

As mentioned earlier, if you manage a building or oversee maintenance, you need a way to measure its condition beyond just looking at wear and tear. This is where the Facility Condition Index (FCI) comes in. It’s a simple way to assess the overall state of a building and determine how much investment is needed to keep it in good shape.

The FCI is shown as a percentage and is calculated by comparing the estimated cost of repairs to the total cost of replacing the building. The formula looks like this:

FCI = (Cost of Repairs / Replacement Value) × 100

The result is a number between 0 and 100. A lower percentage means the building is in good shape, while a higher percentage suggests that major repairs or upgrades might be needed.

For example, let’s say a facility has a replacement value of $1,000,000, and the cost of necessary repairs is $150,000.

FCI = (150,000 / 1,000,000) × 100 = 15%

This means the building requires repairs that amount to 15% of its replacement cost. A lower FCI like this suggests the facility is in decent condition. If the percentage were much higher, it would signal that significant improvements are needed.

Facility managers rely on FCI to make well-informed decisions about maintenance, budgeting, and long-term planning. If a building has a high FCI, it may be more practical to invest in major renovations or even consider replacement. On the other hand, a low FCI indicates that routine maintenance is keeping the facility in good condition.

By using FCI, organizations can prioritize repairs, allocate budgets wisely, and ensure that buildings remain safe and functional for years to come.

How Facility Condition Index (FCI) Works?

Understanding the Facility Condition Index (FCI) begins with a thorough Facility Condition Assessment (FCA). This process involves inspecting buildings and assets to evaluate their current state. It typically includes on-site assessments, data collection, and predictive modelling to estimate future deterioration.

Asset management software plays a valuable role in this process. These tools use extensive databases of degradation models to predict how and when different parts of a facility may wear out. By analyzing these patterns, facility managers can make more informed decisions about maintenance and repairs.

FCI helps identify which buildings are in good shape and which ones need attention. This allows facility managers to plan maintenance and repairs in a more organized way, reducing the risk of unexpected breakdowns and increasing the lifespan of assets.

Why Measure the Facility Condition Index (FCI)?

Understanding the Facility Condition Index (FCI) helps organizations make informed decisions about their buildings and infrastructure. It provides a clear way to assess the condition of facilities and compare them against industry standards.

For organizations with multiple buildings—such as universities, healthcare systems, or government agencies—FCI serves as a helpful benchmark. By looking at the FCI of similar institutions or setting their own target, they can establish a standard for facility maintenance. For example, if an organization sets a goal of maintaining an FCI of 12%, this means that the cost of fixing all maintenance issues should not exceed 12% of the total replacement cost of their facilities.

This data also helps leaders secure funding for necessary repairs and improvements. Once funding is in place, resources can be directed where they are needed most—prioritizing buildings and infrastructure that require urgent attention.

FCI acts as a guiding tool, helping decision-makers allocate budgets, plan maintenance, and ensure facilities remain in good condition to support long-term goals.

Understanding and Using the Facility Condition Index (FCI)

Typically, an FCI (Facility Condition Index) below 10% is seen as good or fair. At this level, there may be minor signs of wear and tear, but everything is still working as it should. Maintenance teams are mainly focused on routine tasks that are planned.

When the FCI reaches 25% or higher, issues become more frequent. Parts of the building start to break down more often, and signs of wear become more noticeable. At this stage, the maintenance team shifts from being mostly proactive to dealing with more repairs as they come up.

Once the FCI hits 60%, the situation becomes critical. The condition of the building has deteriorated significantly, and there are increasing safety concerns. Immediate attention is required to avoid major problems.

Turning the FCI into Action

Using the FCI can really help guide how you handle facility operations and maintenance. Since it’s a recognized and professional way to measure building conditions, it gives you a clear picture of where things stand, helping you reduce risks.

If this is your first time calculating the FCI, think of it as your starting point. From here, keep updating your FCI regularly, as resources allow. Over time, you’ll start to see patterns, which can help decision-makers spot problems early, plan repairs, and decide when it’s time for bigger renovations or other changes.

How to Conduct a Facility Condition Assessment (FCA)

A Facility Condition Assessment (FCA) is a thorough process that helps identify the current state of a facility, from its structure to its systems. Here’s a straightforward, four-step approach to conducting an FCA:

1. Plan and Prepare

   The first step in conducting a Facility Condition Assessment (FCA) is to set clear goals for what you want to assess. Identify which buildings need to be inspected and gather important information, like building blueprints, past maintenance records, or previous assessment reports. This will help you get a clear picture of what needs attention. Also, put together a team of professionals, such as facility managers, architects, engineers, and tradespeople. Their expertise will be necessary for conducting a thorough assessment. You might even choose to bring in property consultants who specialize in assessments.

2. Site Inspections

   Next, it’s time to get on-site and inspect the buildings. This is the core of the FCA process. The team will walk through each building and examine the structure and all the systems—such as electrical, plumbing, HVAC, and more. While inspecting, they’ll document the condition of these systems, take note of any problems or areas needing improvement, and take photos to keep a record. It’s important to be thorough and pay attention to both obvious and hidden issues during these inspections.

3. Data Collection and Analysis

   After the inspections, you’ll gather all the data from your findings. This process involves reviewing the documentation and organizing the information collected, including details about deficiencies and any needed repairs. Using asset management software can help make this process easier. The software can help you sort through the data, estimate how much longer the building’s systems will last, and calculate the costs for repairs. By analyzing the data and using tools like the Facility Condition Index (FCI), you can prioritize repairs based on how urgent and impactful they are.

4. Reporting and Decision-Making

   Once the assessment is complete, it’s time to put everything into a detailed report. This report should include a summary of the building’s condition, a list of problems found, and cost estimates for repairs or replacements. The report should also offer recommendations on what needs to be done to maintain or improve the facility. A clear, detailed report will help you plan the next steps and make informed decisions about budgeting for repairs or upgrades. Asset management software is particularly helpful here, as it can generate detailed reports and help you run different scenarios based on your available budget, timeline, and priorities.

Benefits of an FCA

An FCA can significantly improve your facilities management in several important ways:

1. Making Better Decisions

   By using asset management software to create FCAs, you gain access to reliable data that’s important for making well-informed decisions. This information helps you plan repairs, renovations, and investments, along with understanding their costs. FCAs, along with Facility Condition Index (FCI), provide a long-term view of your building’s life. They give you a clearer idea of how much longer each facility or system will last, making it easier to plan for the future.

2. Staying Ahead with Maintenance

   Facility managers want to avoid surprises. FCAs help identify problems early on, giving you the chance to address them before they become bigger and more costly issues. This proactive approach helps extend the lifespan of your buildings and systems. It also reduces the chance of unexpected breakdowns that could force you to close parts of the building while repairs are being made, saving both time and money.

3. Better Budgeting and Resource Allocation

   An FCA provides you with clear estimates of maintenance needs, making it easier to create accurate budgets. With this information, you can allocate resources more effectively, ensuring that critical repairs and improvements are prioritized and funds are used wisely.

4. Improved Safety and Legal Compliance

   FCA findings often highlight areas where your facilities may not meet safety standards or regulations. Identifying these issues early reduces the risks of accidents, legal troubles, and potential fines. Ensuring your facility complies with safety codes helps protect both your team and the building from avoidable risks.

5. Boosting Facility Performance

   Using an FCA to fix deficiencies and maintain building systems not only extends the life of your facility but also improves its overall performance. This includes better energy efficiency, which can lower costs, and creating a more comfortable and productive environment for employees. A well-maintained facility can boost morale and productivity, leading to a happier team overall.

Impacts and Risks of a High Facility Condition Index (FCI)

A high FCI can lead to:

• Higher maintenance expenses
• Reduced safety and performance
• Failure to meet regulations
• Financial instability
• Harm to reputation and brand image

Monitoring and managing FCI is necessary to minimize these risks and ensure the long-term health of your assets.

Leveraging NEXGEN to Improve FCI

NEXGEN can be a useful tool for improving facility management. With NEXGEN’s CMMS (Computerized Maintenance Management System) Software, organizations can get a clear picture of their facility’s assets. This includes details about each asset’s age, condition, and how much longer it is likely to last.

Having this information helps organizations plan better. They can prioritize maintenance tasks and decide which areas need attention first based on the condition of the assets. By looking at the asset’s condition score, which considers both its current state and the maintenance it has received over time, organizations can focus on the most pressing needs. This approach helps ensure that maintenance efforts are directed in the right areas, making the facility more efficient and reducing unexpected costs.