Whitestone Report: Notes on M&R Cost Benchmarks
SANTA BARBARA, CA - June
6, 1998 - Whitestone Research
announced today the release
of a report entitled "Notes on M&R Cost Benchmarks." The report indicates
that: "Forecasts of M&R costs often rely on an objective reference
point or "benchmark." Derived from surveys or statistical models,
these are usually expressed in terms of cost per square foot or
cost over replacement value. In some cases a benchmark is the sole
basis for forecasting a facility M&R budget-especially when a long-term
estimate is required, or the building inventory is large and diverse.
In other cases a benchmark is used as a point of comparison, to
put more detailed estimates in perspective and add credibility.
In either case, M&R funding
benchmarks play an important
role in the distribution of
scarce funds."
The following cautionary notes
on the selection and use of such statistics are examined in greater
detail in the full report:
- Surveys are often used as
cost benchmarks
- Some surveys
may not report total M&R costs
- Does the data support the
conclusions?
- What do surveys really tell
us?
- Consider both life cycle
forecasts and survey-based benchmarks
- M&R forecasts
should not rely on facility
replacement costs
Whitestone Research, headquartered
in Santa Barbara, California, specializes in applied economic research
and software development. Whitestone products and services are used
every year by hundreds of major corporations, government agencies,
and public and private institutions.
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