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Tolk Formula

A facility reinvestment formula developed by Janice Tolk for estimating the maintenance and renewal budget requirements at different stages in the facility lifecycle.

Elements of the Tolk Formula
The Sherman-Dergis formula (see figure 1) includes three key variables:
  • Building age;
  • Building size
  • Building renewal constant.

Purpose of the Tolk Formula
The primary purpose of the Tolk formula  is as follows:
  • To provide a simple and rapid means of establishing funding requirements for a facility.
  • To provide a preliminary screening tool that guides an informed decisions regarding the collection of further data on reinvestment or redevelopment in a facility
  • To determine if the funding requirements are consistent or inconsistent with the age of the facility, typically with reference to either an asset deterioration model, asset survivor curve or facility lifecycle model. 
  • To establish a potential funding trajectory for a facility.
The SD formula is most effective when used in conjunction with other reinvestment formulas or as part of a preliminary screening process.

There are three types of models for calculating reinvestment rates for buildings at different stages of their lifecycle.
Fig. The Tolk formula for estimating capital funding requirements for a facility.

The relationship between the long-range strategic plan and the shorter range tactical plan.
Fig. The relationship between the tactical and strategic planning horizons, where activities in the former will affect the timetable of the latter.

Facility Life cycle model indicating get ahead costs
Fig. Model to indicate the quantum of capital renewal costs at different stages in a facility life cycle.

Funding trajectories and inflection points resulting from three alternative funding methods - "Adequate Reserve", "Capital Load" and "Non-Termed.
Fig. Lifecycle funding trajectories and inflection points resulting from three alternative funding formulas.

See also:
Compare with other formulas:

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