MBE Consultants undertake Condition Surveys and Life Cycle analysis for all types of property; the reports highlight the present condition and operation of equipment and systems, giving guidance on repair or replacement costs.
Life cycle reports cover 5, 10 or 15 year periods and are developed with the following methodology:-
The methodology used to produce a report is a mixture of empirical data and experience, both of which are used against the following criteria:
- a)Replacement cost = Present Value
- b)Life Cycle Period = 5,10 or 15 years
- c)Life Cycle Reset Period = 5 years
The first stage of the report requires an asset list. When this is completed the list is assessed for age and present condition, using the accepted coding method used in the industry namely:
- A=As good as new.
- B=Fully Operational
- C=Operational but requires minor repairs
- D=Non-Operational or requiring major repairs
Based on the age and condition; the assets are then given an theoretical life period (Life1), during this stage an estimate is also made on the assets maintainability (Lifem), as this may affect the life period (Life3). Life2 is the actual age of the asset. In this case, and in the absence of any other information, the age of the equipment is taken from the original installation date.
Estimated life can be represented by:
L3 = (L1-L2) + Lm where L1 is the theoretical life period, L2 is the actual life used and Lm is the life adjustment based on engineering experience.
Lighting, L1 = 20 years, L2 = 17 years and Lm = 10 years - that is it is in reasonable condition and spares are readily available, giving L3 = 13 years.
Lm is adjusted based on condition and for a poor condition resulting in D then L3 will be 0. In some cases Lm maybe negative where certain restrictions foreshorten the theoretical life.
Life1 data is taken from CIBSE Guide M Maintenance engineering and management
On completion of these stages the cost of replacement is assessed using data from SPON'S MECHANICAL AND ELECTRICAL SERVICES PRICE BOOK, manufacturer's data and experience of the contracting and installation industry.
The final stage requires the costs to be related to the life cycle period so that the spread of spend can be assessed.