THOMPSON’S TAKE: Managing a Facilities Budget in the Wake of a Pandemic

As businesses and education facilities begin the reopening process amid the COVID-19 pandemic, facility managers will most likely be tasked with reducing costs. It stands to reason that revenues will be significantly impacted for an extended period. Naturally, senior leaders of these institutions will be looking to cut operating costs and facility managers will be asked to accept their fair share of budget reductions. However, the key is to find cost-cutting measures that provide the least impact to the infrastructure of the facility but still allow senior managers to open, albeit at lower capacity. Lower capacity will allow for proper social distancing and other measures to prevent the spread of the virus which, in turn, helps keep employees, staff, students, and visitors (if any) as safe as possible.

Each major cost cutting strategy has pros and cons as well as an impact on how facilities are utilized. Since each facility has its own specific challenges, I have compiled a list of strategies to consider with their pros, cons, and budget impact to help facility managers develop the best approach for their specific situation. Therefore, this list is simply a way to start the conversation.

Strategy 1: Only open essential parts of the facility while under reduced capacity

• Pros

  • Reduced energy consumption by only operating essential mechanical/electrical systems and HVAC systems

  • Reduced run time on equipment

  • Reduced areas to keep clean and sanitized

  • Reduced maintenance staff required to run the equipment

• Cons

  • Limited access to the entire facility

  • Facility uses may be hampered by limited access resulting in certain inefficiencies

  • Creature comfort could be affected

  • Facility security could be impacted

• Budget Impact

  • Energy consumption savings and resultant staff savings could be significant

Strategy 2: Adjust run times (occupied vs unoccupied) and temperature set points on Heating/Cooling equipment

• Pros

  • Reduced energy consumption by raising minimum cooling temperature or lowering maximum heating temperatures

  • Access to all parts of the facility

• Cons

  • Maximum area to clean and sanitize

  • Maximum staff required to run and maintain equipment systems

  • Creature comfort will be impacted

• Budget Impact

  • Moderate energy consumption savings but no staff savings

  • Increased cleaning costs

Strategy 3: Reduce the hours of the day that the facility will be open

• Pros

  • Limited run time for equipment and energy conservation

  • Ability to shut off equipment when the facility is unoccupied

  • Only run equipment when the facility is occupied

• Cons

  • Creature comfort impacted as HVAC systems would not be started to preheat or precool the facility prior to occupancy

  • System efficiency impacted while trying to achieve set point temperatures

  • Security may be impacted if limited lighting available

• Budget Impact

  • Moderate reduction in energy costs

  • Moderate reduction in staff hours necessary to run equipment

  • Possible increased security costs

Strategy 4: Reduce or eliminate preventative maintenance programs

• Pros

  • Reduced staffing and associated supplies such as belts, filters, lubricants, etc.

• Cons

  • Allows equipment to fall into disrepair or premature failure

  • Down time from equipment failures can be costly

  • Probable loss of staff with ‘local’ knowledge that is difficult to replace

• Budget Impact

  • Short-term savings will be realized

  • Long-term capital repair/replacement costs will be higher due to premature failures

  • Staff positions can be eliminated on a temporary or permanent basis

  • Resulting savings will not offset eventual capital renewal costs

As mentioned above, this is not intended to be a complete list. Rather, it is intended to help start the conversation relative to each facility’s needs and challenges as we try to move forward amidst the COVID-19 pandemic.

This blog is part of a series in which I’ll provide my take about a variety of subjects regarding facility management, maintenance and repairs to help provide insight into common challenges that facilities managers face and how to hopefully best resolve them.