of three primary condition
indices and a key
performance indicator used to assess the current condition
of a single facility
or a portfolio
of buildings. Sometime also referred to as projected
The EFCI is
the ratio of two key reinvestment metrics:
These two metrics are divided by the current replacement
of the entire facility. The formula is contained in the figure at the
EFCI therefore looks backwards in time (as with the FCI) and also
forward in time (over a specified planning horizon).
measure of the physical health of a facility, derived from the cost of
the concerns and projected concerns
for a given facility compared to
the total reproduction value of the facility.
principal value of an EFCI rating, particularly for the owners and
operators of a single facility or a portfolio of facilities, can be
The formula contains a
numerator that is divided into a denominator to return a percentage KPI.
formula contemplates the following dynamics:
of the formula is based on the current reproduction cost
Costs. This includes deficiencies and deferred
Costs. This includes normal lifecycle renewal
projects (but only over a
specified planning horizon, typically set at 5 years).
EFCI Condition Scale
The relative measure of the condition of the facility (or facilities)
usually organized into a four-tiered condition
scale, as follows:
These thresholds only apply to the EFCI-5 variation.
No industry standard has yet been established for the thresholds.
- "Good" Condition
0-20% of CRN
- "Fair" Condition
- 21-39% of CRN
- "Poor" Condition
- 40-90% of CRN
- Critical Condition
- 60%+ of CRN
The EFCI must be presented relative to a designated planning horizon,
In all cases, regardless of the length of the
horizon, the EFCI will also include the aggregated value of all
deferred maintenance (deficiencies).
- EFCI-3 - The next three (3) years of
- EFCI-5 - The next five (5) years of
- EFCI-10 - The next ten
(10) years of renewal
Listed below are some of the merits and advantages of the Extended
Facility Condition Index (EFCI) as a measure:
- The EFCI
provides a more comprehensive view of a Facility than
the FCI since it also includes the keep-up cost requirements. That is,
it looks forward to future renewal projects and backwards to
- It includes issues that are
Behind-the-Horizon and also future
renewal projects that are In-the-Horizon.
Listed below are some of the
limitations of the Extended Facility Condition Index (EFCI) as a
EFCI is limited to a particular planning horizon, such as EFCI-5 or
EFCI-10, which can lead to confusion if the decision makers do not
fully appreciate the scope of the metric.
- Some items are subject to double-counting as
catch-up and keep-up costs.
- The EFCI does not factor get-ahead costs that
arise from different forms of obsolescence.
- There is no industry accepted standard
for a "good", "fair" and "poor" threshold under the EFCI metric.
- It is not an
absolute measure and is
as a snapshot in time as a comparator to similar Assets or as an Index
which quantifies the adequacy of a funding
Level over a longer period
of the primary limitations of the Extended FCI is the absence of a
weighting system to prioritize the relative importance of the backlog
associated with each
system within a building
or each building in a portfolio.
problem is partially resolved when the EFCI is cross-referenced against
a priority index
in a 2-dimensional matrix.
- The EFCI
does not allow for modernizations and upgrades, which are addressed by
the Facility Needs Index (FNI).
Included below are some asset
management concepts to be considered relative to the EFCI:
Management of the data from the FCI can be
administered through the
following mechanisms and techniques.
- Determine the mission criticality of the
different facilities. [see: Mission Dependency Index].
wether and FNI is necessary for all or some of the facilities. Where
FNI may be considered unnecessary, determine if EFCI or FCI will
Cycle - That is, how
often should the FCI be updated. Some
facility managers may deem a 5-year assessment cycle to be adequate,
whereas others may consider a 3-year cycle more appropriate.
- That is, what level of assessment should be used to generate the FCI.
For example, some facilities may be adequately evaluated with a
top-down methodology whereas other facilities cannot be fully evaluated
without a more rigorous bottom-up methodology.
Mix - That is, should facilities be assessed at
the different levels of detail than other facilities. (see: mixed scanning)
Fig. Three alternative
formulas for determining key performance indicators (KPIs) for a single
a portfolio of facilities.The
EFCI is the 2nd formula and is more comprehensive in scope than the
Examples of deferred maintenance items that are included in the
numerator of the EFCI formula. These are considered
reinvestment category #1: catch-up costs.
Fig. Examples of some of the types of capital projects that may be
captured in the EFCI formula. Left is roof renewal and right:
domestic repiping project. These are considered
reinvestment category #2: pending lifecycle renewal costs.
It is essential that the
EFCI defines the planning horizon over which the future renewal
projects are to be identified. 10-year tactical plan where the first 5
years of forecast renewal
projects are included in the EFCI calculation.
Examples of the correlation of EFCI with FCI to establish reinvestment
or redevelopment decisions depending on whether a facility is deemed to
be in "good", "fair", "poor" or "critical" condition.
drift of certain facilities represented on a scatter plot with the
Facility Condition Index (FCI) on the horizontal axis and the Mission
Dependency Index (MDI) on the vertical axis.