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z Manufacturing plant
z Define the industry/ unit
z Revenue generation
Construction cost factors
Revenue
90%
Reserve for replacement
z Capital Expenditures
– Not just replacement of worn out furniture,
finishes and soft goods
– Wear and tear,
tear obsolescence,
obsolescence regulatory
requirements, changing technology…
z 3%-4% of Revenue
z Management v Ownership
Components, layout, materials…
z Lifetime
z Repairability
z Efficiency
z Accessibility
Management responsibilities
z Control costs
z Protect owners’ investment
z Provide efficient work environment
z Provide safe work/ guest environment
z Meet responsibilities per management
contracts/ franchise agreements
Specific maintenance requirements