Now that we have gone over how building modeling works, I wanted to provide a bit more detail on the most common approaches to building modeling. There are generally two ways to gather modeled data:
- Building-Type Models (BTM); and
- Client-Informed Models.
There are some clients that will also consider limited on-site validation of a model, whether building-type or client-informed. We will talk about limited on-site validation of modeling in a future post so I will move on for now.
A BTM is where you develop a list of elements that are typically found within a specific type of building (e.g. elementary school, recreation centre, long-term care home, etc.). Using the date of construction of the facility (and potentially data of major renovation) as well as the building square footage, you develop a future forecast of renewal needs, assuming that each element is original to the date of construction. Generally building costs are based on the square footage of the building for each element assumed to be present.
In some instances, if there are multiple additions to a building (I like to call those Franken-Buildings), you may consider modeling each addition separately. This will increase the complexity of your dataset, but may give you a more representative list of future renewal needs.
The benefit of using a BTM is that it is quick and easy to get a dataset created. Also, the cost is fairly inexpensive as it is typically a desktop exercise. The process also doesn’t generally require a lot of effort for you and your team, other than providing some tombstone information on the buildings. For a relatively small cost, minimal effort and short time frame you can get a reasonably accurate, high-level forecast of future renewal need for your portfolio.
The drawback of a BTM is that it is theoretical and the data will not match up with the reality of what is actually within the buildings. Also assuming that everything is original in the building is generally not an accurate assumption, especially for older buildings that have had lots of elements replaced over time. Additionally, you can end up with elements in your dataset that are not actually in your buildings, which can create doubt in the validity of the dataset in the first place. Finally, the granularity of the dataset does not allow you to take much action (prioritizing an actual capital plan).
If you are in the early stages of your asset management journey and you need some high-level numbers associated with your Deferred Capital Renewal and Maintenance Backlog in a short period of time, a BTM may be the perfect first step on your journey. However, as your program evolves, you will likely realize that you need better data on which to base your asset management story!
Next week, I will review the Client-Informed Model which is the next step up in terms of facility condition data for your portfolio. See you next Thursday!!