The Facility Management Handbook, 4th Edition

4

Financial Management

Pulse Points

• In order to manage finances properly, the facility manager must have adequate funding for operations, maintenance, and repair (to include deferred maintenance)—the areas that are most often underfunded.
• The most successful facility managers view themselves as business managers.
• All economic analyses and comparisons should be based on life-cycle costs and should consider the cost of ownership.
• Know your company's rules for capitalization, and follow them carefully. Don't cheat.
• Manage carefully the depreciation charges for your capital program in your annual budget.
• Become knowledgeable about capital evaluation tools.
• Keep in mind that vendor-supplied cost analyses are not dependable.
• Use a landlord mentality ...