Description

There is often a misunderstanding of the connection between the maintenance level of an asset and its eventual valuation. Cultural differences and disagreements on responsibility when it comes to maintenance often lead to under maintained assets. Rob details the outcomes caused by an efficient maintenance scheme or a poorly applied one. 

KEY TAKEAWAYS

• Poor maintenance can have a negative effect on the value of the property and the operational efficiency of the building, including the staff. 
• Skill shortages mean no one to perform maintenance and thus the value of the property is lowered. Banks rarely appreciate this and do not understand that maintenance costs are necessary to avoid risk to the building.
• Training and awareness programs, fully engaging with building owners themselves, government setting policy and procedure, and valuers taking maintenance levels into consideration are all ways to increase uptake of efficient maintenance procedures and schedules.
• Results of bad maintenance can be building closures which knock on effects can be costly to any organisation.

BEST MOMENTS

‘In Europe there is a much stronger ethos of maintaining things, maybe not to the right standard, but at least they are looked at. Whereas in the Caribbean region maintenance is seen as a cost that is not necessary until it all goes wrong.’

‘Often tenants are on a full repairing and insuring lease but they don’t fully understand the implications of that.’

‘There was a strike and then it closed due to environmental issues and the whole cost impact of that.’

VALUABLE RESOURCES

https://www.ianjrogers.com/

ABOUT THE HOST

Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years’ industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.

CONTACT METHOD

https://www.ianjrogers.com/

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