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The Facility Managers Guide to Budget Management

Saving money is always a goal for facility managers, and sometimes, it’s more than just a goal, it’s a necessity. So how do you manage a tight budget?

Unplanned Service Calls
Avoiding unplanned service calls saves big dollars, because these calls are, well, unplanned. This means that there isn’t money (specifically) set in the budget for each of these calls and that your time and attention was most likely supposed to be dedicated to something else when they occur. First thing is to make sure you have “wiggle” room in your budget for unseen maintenance needs. Second, implement systems that help mitigate unnecessary efforts, such as a help desk and call center. Help desks can supply remote facilities basic troubleshooting steps that can resolve simple issues before a work order is created. Call centers can help walk employees through simple steps and also capture more information in the event that a work order actually needs to be issued.

Set Your Price
Prearranging prices for your predictable needs (such as landscaping) will make your budget more accurate and may get you a better deal. It will also help you predicted you unpredicted costs as well. Having a set price will let you estimate extra work that will come up throughout the year. Larger facilities may benefit from having pricing guidelines (such as appropriate price points, who has the authority to override, etc.) will help you stay within your budget and control your spending.

Warranties, Warranties, Warranties
This is so important that we had to list it three times. Cashing in your warranty will help you save unnecessary spending. Best practices for documenting and tracking warranty coverages is how a facility can avoid spending money on something that is covered. Be sure that when new construction projects occur that you file and update your warranty records. Warranty management is important for all facilities, but larger facilities will naturally have more warranties to track and this can add up to a lot of savings.

As an experienced facility manager, a lot of this will come naturally to you, but if may not come naturally to your team and other staff members. Addressing these three subjects on a regular basis will help you and your facility stay organized and focused, keep you within budget and on track to success!