Gambling with Deferred Maintenance by David Albrice
“Sooner or later everyone sits down to a banquet of consequences” – Robert Louis Stevenson.
Deferred Maintenance – We may think we can outsmart consequences, we may try creative tricks to avoid consequences, but we can only do this for so long. Sometimes we get “lucky” and we can defer things for a few years, even decades. Eventually, though, we will lose.
So what are these different types of consequences of failure that so many of us are willing to gamble?
1. Physical Consequences
The first group of consequences relate directly to the tangible, ‘hard’ things that we can touch, smell, hear and feel with our senses. Here are a few:
- Increased DOWNTIME and disruptions with essential services, such as elevators, space heating and space cooling equipment, etcetera.
- Greater NUISANCE from noise, vibrations, smells, etc. that affect the quiet use and peaceful enjoyment of the property.
- Increased OUTAGES associated with power supply, water supply, gas, and other utilities.
- Reduced RELIABILITY of systems and assets, particularly critical assets.
- Collateral DAMAGE to finishes and substrates from water ingress and water escape conditions.
- UNSIGHTLINESS that detracts from the exterior and interior aesthetic appearance of the building.
- Accelerated DETERIORATION of some assets requiring earlier renewal.
- Potential for waste and ground CONTAMINATION.
These consequences make our banquet feel like a table filled with plates of rotting food. Think of eating from a table with wobbly legs and the wine glasses are toppling over.
2. Financial Consequences
The second group of consequences hit our pocket book hard, they drain our wallets and they mess with our balance sheet. Here are some examples:
- Increased COSTS due to lack of planning, reactive/crisis management, accumulation of deferred maintenance, unnecessary repairs, greater project scopes, etc.
- Greater financial HARDSHIP through special assessments, demand loans, etc.
- Diminished MARKETABILITY of the suites due to stigmatization, etc.
- Lower RESALE VALUE of the property.
- INEFFICIENCES in the use of energy, coordination of people and other resources
- Missed opportunities for leveraging economies of scale, economies of efficiency, economies of agglomeration, etc.
- Increased CONTINGENCY ALLOWANCES for substrate repairs
These consequences make our banquet feel like a table filled with plates of scraps and leftovers. Think of being overcharged for a lousy meal.
3. Legal Consequences
The third group of consequences tie us up, they remove our freedoms. Here are some examples:
- Potential for FINES and penalties due to non-compliant conditions.
- Potential ACCIDENTS and injuries to owners, guests and invitees due to unsafe slip, trip and fall conditions.
- Increased insurance DEDUCTIBLES due to failure to mitigate.
- Increased RISK exposure to individual owners and the organization from failure to do the necessary due diligence.
- Jeopardizing of WARRANTIES due to failure to meet duty of care.
- LITIGATION resulting from actions taken against the owners.
These consequences make our banquet feel like a table filled with food that must beeaten with handcuffs behind our back. Think of a meal on a plane with blunt, plastic utensils and no elbow room.
4. Political Consequences
Our final group of consequences relate to the people and their emotions. Here are some examples:
- Increased STRESS and frustration of individual owners/guests/customers due to unresolved business and limited peace of mind.
- Potential for CONFLICT between owners due to unresolved isssues, greater time at general meetings, etc
- Residents/businesses may have to VACATE the premises during emergency repairs.
These types of consequences make our banquet feel like a table surrounded by angry people who get indigestion from the meal. Think of a dysfunctional family get together.
Consequences of failure come in different degrees:
- “Catastrophic” consequences (such as loss of life and injury to persons)
- “Critical” consequences (such as significant damage to the building and components)
- “Marginal” consequences (such as a temporary outtage)
- “Negligible” consequences (such as unsightliness that can be corrected later)
Written by David Albrice
RDH Building Engineering Ltd.
David Albrice is a Senior Asset Management Specialist at RDH Building Engineering Ltd. His experience with deferred maintenance and the consequences thereof comes from his work on maintenance reviews, warranty reviews and facility condition assessments. David likes food and can be followed on Twitter. Edu-toons are being developed with Daryl Stephenson of caricatoons.ca
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