Leveraging the Facilities Condition Index (FCI): A Crucial Tool for Asset Management

Facilities executives, CFOs and other organizational leaders use a wide array of tools to measure the performance of their physical assets. Whether they are considering an entire facilities portfolio or individual assets within it, one of the most powerful and reliable measurement tools they can deploy is the Facility Condition Index (FCI).

In the context of higher education facilities, the FCI is invaluable for managing a diverse array of buildings, such as classrooms, dormitories, laboratories and recreational centers. University administrators can use the FCI to prioritize maintenance and renovation projects, ensuring that the most critical needs are addressed first. By comparing the FCI scores across various buildings, they can make informed decisions about where to allocate funds to maximize the impact on campus operations and student satisfaction. Additionally, the FCI provides a transparent and objective metric that can be communicated to stakeholders, including trustees and state funding bodies, to justify budget requests and secure necessary investments.

Learn more about the FCI and how higher education facilities can utilize this powerful tool to formulate facilities investment strategies and prioritize projects.

What is the Facility Condition Index?

At its core, an FCI score is a snapshot of the current state of a single facility, a group of facilities or even an entire facilities portfolio. Organizations generate this snapshot with a simple equation: the cost to complete all required projects divided by the cost to replace the entire facility exactly as it is.

The FCI Equation

Here’s how the math works:

• Total Repair Cost: This includes all identified needs, such as repairing a damaged roof, replacing an aging HVAC unit and other necessary maintenance.
• Replacement Cost: The cost to replace the entire building with a new, identical facility.

Example Calculation:

• Cost to repair a university’s student union: $100,000.
• Cost to replace the building: $1,000,000.
• FCI = $100,000 / $1,000,000 = 10%.

In this scenario, an FCI of 10% indicates a relatively healthy facility. However, if the total cost of addressing every need was $600,000, the FCI would be 60%, signaling greater urgency for investment decisions.

Why Calculate a Facility Condition Index?

Calculating FCI offers tremendous value for higher ed facilities, including:

Objective Benchmarking

FCI provides an objective and accepted standard for benchmarking. Organizations with large facilities portfolios, such as universities, can compare their FCI against peers or target an aspirational FCI. For instance, setting a standard FCI of 15% means that the cost to address all needs in the portfolio is 15% of replacing the entire portfolio.

Informed Decision-Making

Higher education leaders can use FCI data to:

• Request Funding: Highlight deficiencies and secure necessary funding.
• Prioritize Projects: Direct resources to areas of greatest need, identified by FCI.

Strategic Resource Allocation

FCI acts as an investment compass, helping decision-makers confidently allocate financial and human resources to optimize facilities and achieve organizational goals.

Facility Condition Index: The Industry Standard for Measuring Facilities Performance

An FCI provides an unbiased, universally accepted performance standard. Organizations can apply this standard at the portfolio level or narrow it down to the system level. No matter how they apply the Facility Condition Index, higher ed leaders and decision-makers can trust they are using reliable data to make informed investment decisions.

Ready to elevate your facilities investment strategy? The Gordian Facilities Condition Index (FCI) Calculator is an unbiased, universally accepted tool that helps decision-makers channel resources effectively. Receive your FCI estimate using the free calculator today!

This content is sponsored and provided by Gordian and developed by Inside Higher Ed's sponsored content team. The editorial staff of Inside Higher Ed had no role in its creation.