Tom Jackson, Senior Surveyor at Knight Frank Newcastle, shares his expertise on planned preventative maintenance (PPM).
If your business owns or rents a commercial space, you will have or definitely should have heard of a planned preventative maintenance (PPM) schedule. A PPM strategy is a proactive approach to maintaining a property so you can avoid failures, breakages, unexpected repair bills and disturbances to occupants or operations.
Done right, PPM will help maximise and maintain the value of your property by helping it operate efficiently, in full working order and as safely as possible – for as long as possible.
You might think – why not just react to problems as and when they arise – surely that saves us money? Well no. Reactive maintenance allows only for doing repairs after something breaks. On one hand, this allows for higher utilisation and output in the short term. On the other hand, the repairs will normally end up costing more than is gained from increased usage.
At the point of failure, repair costs are more likely to be higher, and consequential damage may also have occurred, for example, in the case of a roof leak. Over a long period, leaks may cause damage to the insulation and supporting structure as a result of not undertaking regular maintenance or repair works.
How will PPM reduce my costs?
It is widely accepted that planned maintenance creates savings against reactive repairs. The savings will differ depending on the complexity of the property. Having a PPM strategy yields benefits for future planning and projected costs, which can help when budgeting for the coming year, or for longerterm budget setting.
What are the other benefits?
Add value
Well-maintained properties last longer and look better. Making sure that a building is regularly maintained will increase appeal to either prospective purchasers or tenants, adding both to its value and its lifespan.
Minimise risk
Take away the stress of not knowing if a big repair bill is about to hit as a result of a failure that could have been predicted.
Safety first
PPM ensures that all health and safety and statutory compliance issues are met building-wide. With some simple planning, all your bases can be covered. For example, a PPM will ensure installations such as emergency lighting and fire alarms are considered, both in terms of statutory annual maintenance, and long term replacement requirements. In good working order
PPM ensures that the building is always in order. Members of your management team will undoubtedly change so having a PPM programme in place means that when your employees change, nothing gets overlooked; your new team member starts off knowing exactly whats going on with maintenance. This seamless transition means your service level will maintain its highest standard.
Minimise disruption to day-to-day business
Having a forecast of maintenance works means you can plan accordingly to minimise disruption to your tenant, employees or customers. This advance warning and consideration should increase tenant/ employee/customer satisfaction and make the work easier to carry out. For example, by planning to group works of a similar nature together simultaneously, you can reduce disruption and cost, which may otherwise result in having multiple building shutdowns.
Helps with planning service charges
If you have tenants in your building who contribute to a service charge, having a PPM will reduce headaches caused by disputes because you can clearly demonstrate how you plan to look after the building and apportion the costs fairly via service charges. A PPM also allows these costs to be balanced over the PPM period to minimise any spikes in the service charge budget from year to year.
How do I get a PPM programme?
An RICS surveyor will visit your property to inspect and document the condition of all the building elements. Following this they will prepare a schedule which details the future maintenance requirements/ lifespan and projected costs of the maintenance/ replacement, over the course of the PPM period. In some cases, mechanical, electrical and structural engineering consultants may assist with the preparation of the PPM, if required.
You work with your surveyor to come up with a planned budget for maintenance over a certain period, for example, over the next five or ten years. Your surveyor will work within your budget and advise you, and document, which elements should be a priority for maintenance or repair. So, there it is. If planned well, PPM will increase your buildings value and reduce costs associated with maintenance. Its a no brainer really.
Contact Tom Jackson tom.jackson@knightfrank.com
