MAKERERE UNIVERSITY

COLLEGE OF ENGINEERING, DESIGN, ART AND TECHNOLOGY

SCHOOL OF BUILT ENVIRONMENT
DEPARTMENT OF CONSTRUCTION ECONOMICS AND
MANAGEMENT

CMG 3107 MAINTENANCE FOR CONSTRUCTION

MANAGEMENT
LECTURER: MR. SSAFIK AINOMUGISHA
GROUP THREE

GROUP MEMBERS
S/N NAME REG. NO. SIGNATURE
1 BABIIHA MARK 20/U/2387/PS
MUHUMUZA
2 MWESIGWA ALPHA 20/U/2405/PS
3 NAKASANGO CLAIRE 20/U/2386/PS
4 ATATSYA HERMAN 20/U/2377/PS

5 TUKAMUSHABA JUSTUS 20/U/2381/PS

6 MUTUMBA DENNIS 20/U/2393/PS

7 AMARA KENNEDY CALVIN 20/U/0681
Contents
INTRODUCTION ........................................................................................................................................ 3
DEFINITIONS. ............................................................................................................................................. 3
Cost Categories for Maintenance (adapted from Peimbert-Garcia et al., 2012) ........................................... 3
Prevention Costs...................................................................................................................................... 3
Inspection Costs ...................................................................................................................................... 3
Failure Costs ............................................................................................................................................ 4
Alternative Classification of Costs in Maintenance as A Result of Budgeting ............................................ 4
Bedrock costs ........................................................................................................................................... 4
Programme costs ..................................................................................................................................... 4
Operating costs ........................................................................................................................................ 5
Committed costs ...................................................................................................................................... 5
Engineered costs ...................................................................................................................................... 5
Cost Categories According to Analysis of buildings operation and maintenance costs ............................... 6
Statutory periodic inspections ....................................................................................................................... 6
Inspection maintenance .......................................................................................................................... 6
Uses of inspection maintenance ............................................................................................................. 6
It is a necessary part of the maintenance program. ............................................................................. 6
Kinds of Inspection Maintenance .......................................................................................................... 6
Example of Inspection Maintenance ..................................................................................................... 7
Operational facility costs .............................................................................................................................. 7
Preventive Maintenance costs ....................................................................................................................... 8
Types of preventive maintenance .......................................................................................................... 9
Benefits of preventive maintenance ..................................................................................................... 10
Disadvantages of preventive maintenance .......................................................................................... 11
Costs of replacement and repairs ................................................................................................................ 11
Types of Building Repair and Maintenance Services ................................................................................. 11
Day to Day Repairs ........................................................................................................................... 12
Annual Repairs............................................................................................................................................ 12
Special Repairs .................................................................................................................................. 12
Additions and Alterations ................................................................................................................ 12
Reactive maintenance activities .................................................................................................................. 12
Conclusion. ................................................................................................................................................. 14
INTRODUCTION
Maintenance expenses are costs incurred on a regular basis to keep an asset working
in its optimal condition. Maintenance costs come into play when a person purchases
an asset, such as a motor vehicle, speed boat, or even a condo. The asset requires
ongoing maintenance during their useful life to keep them in good working
condition.
When buying a fixed asset, buyers must budget for the ongoing maintenance costs
of an asset in addition to the initial purchase price that the buyer is required to pay
to acquire the asset. Maintenance costs are inevitable, and the asset owner must incur
such costs regularly whether or not the asset is in active use.

DEFINITIONS.

Cost Categories for Maintenance (adapted from Peimbert-Garcia et al., 2012)

Prevention Costs
Definition:
Cost of an action taken to prevent or reduce the risk of a machine failure. Any cost
involved in repairing or replacing assets before a failure occurs or in maintaining its
condition to a determined level.
Costs considered.
Material, personnel, training, preventive maintenance, setting-up, spare parts,
quality planning, process control, design reviews, production loss, etc.

Inspection Costs
Definition:
Costs incurred to assess the condition of the machine, equipment, asset, etc.
Costs considered.
Material, personnel, equipment used to inspect the asset, testing, production loss,
etc.
Failure Costs
Definition:
Total costs due to failures.
Costs considered.
Material, personnel, downtimes, reworked material, corrective actions,
replacements, returned material, warranty charges, insurance costs, cost of
catastrophic consequences, production loss, etc.

Alternative Classification of Costs in Maintenance as A Result of Budgeting

Apart from classification following the type of maintenance being done, cost
categories in building maintenance can also be classified following the budgeting
process undertaken.
The budgets are based upon the work that has to be done and are expressed in terms
of the financial expenditures that have to be incurred in order to carry out the
maintenance works.
During the budgeting process, the costs are built up from labor costs, material costs,
and other expenses that are contributing to the maintenance work being carried out.
The cost categories following the criteria of budgeting can be classified as follows:
Bedrock costs
These are costs that are incurred to maintain the assets in a serviceable
condition, regardless of whether or not the property is used productively.
The main aim of undertaking these costs is to avoid damage to the structure
as a result of depreciation.
An example of this scenario can be repainting metallic windows and doors
regular regardless of whether a building is occupied or not so as to avoid
damage by rusting.

Programme costs
These are costs that incurred by the decisions of management with the view
of improving the level of activity, technology of operations, quality of the
environment and/or public relations image.
 These costs are a result of an optional decision taken by the owners of the
structure. An example of these costs may be the decision by the owners of a
structure to install a more energy efficient air conditioning system.

Operating costs
These are costs incurred by decisions of management in fulfilling the
operating role of the enterprise; they may be variable when geared to the level
of business activity, or fixed as in the case of a heating plant.
This type of costs is incurred more regularly as a certain system in the
structure keeps running and failure to cover them may cause a breakdown.
An example of this type of costs could be the regular emptying of a cesspool.

Committed costs
These are costs that are a result of past decisions over which present
management has little or no control. This cost may be impossible to postpone
or ignore and may be a result of local government regulations or company
policy.
An example of committed cost could be the execution of scheduled
inspections for certain systems in the building which are mandatory in nature.

Engineered costs
These are costs that are a result of a future maintenance activity’s cost being
measurable within the limits of the optimum amount of work to be done.
These costs arise as a result of availability of methods of projecting or
forecasting the costs that will be incurred in future.
Future changes in inflation and interest rates (statistical economic/price
indices) have to be considered in this case.
Cost Categories According to Analysis of buildings operation and maintenance
costs

Statutory periodic inspections

Statutory periodic inspections are various activities that are regulated by
relevant laws and regulations, and are conducted to protect safety, health and
life of people. These activities consist of tests and inspections that are made
on particular building parts, equipment and installations.
Inspection maintenance
This maintenance is the evaluation of the condition of equipment, machines or a
building. It is done to check the condition of the building and determine what
materials, tools and labor are needed to service it.
Uses of inspection maintenance
a) To identify minor issues before they turn into costly repairs.
It is a necessary part of the maintenance program.
Kinds of Inspection Maintenance
a) Safety inspection – This involves checking on the components or parts of a
building to make sure they are safe enough to carry out their intended
operation.
b) Failure Finding Inspection – This checks the operation of backup or
protective devices for example a backup generator that cannot be readily
checked unless primary system fails. It ensures that the emergency system of
the building is in proper working condition.
c) Lighting Inspection – In this kind, lighting systems of the building are
maintained in that they are inspected to ensure they are in their proper working
conditions and can properly serve the purpose they are supposed to.
d) Electrical Inspection – Appliances and devices that use electricity and help
in the operation of the building are maintained regularly. This helps to prevent
unnecessary electric hazards that come with dangerous mechanical
conditioned appliances.
e) HVAC Inspection (Heating, Ventilation, and Air Conditioning) – Proper air
circulation and necessary temperature is key in the comfort of occupants and
users of a building. This inspection checks all devices like air conditioners,
heaters plus the systems they are connected to and makes sure they are
working and properly cleaned.
 f) Building Interior Inspection – This kind of inspection like the name states
majorly focuses on the interior part of the building. Walls, ceilings, floors and
also internal painting or wall finishing are checked for damage or other
degradation.
g) Building Exterior Inspection – Paints, doors, windows, external walls as
well as foliage around the building is checked for any deterioration. Mainly
the exterior of the building is looked at to ensure it can serve the protective
and aesthetic purposes plus other purposes it is meant to serve.
h) Plumbing Inspection – The entire water supply and waste management
systems of the building is checked. Pipes, water storage tanks, waste outlet
systems and so on are all inspected.

Example of Inspection Maintenance

Part Recommended replacement Replacement
period method
Humidifying heater Once every seven (7) years Contact your
(temperature and humidity distributor
type only)
The operating life operating life of the humidifying heater depends on temperature
and humidity control operation time and the water quality. Using water with high
conductivity can reduce the operating life. To extend the operating level the heater,
replace the water in a humidifying tray before a temperature and humidity control
operation and regularly clean the inside of the test area.

Operational facility costs

Operational facility costs are significant in the life cycle cost structure.
Operating costs include energy costs (electricity and heating energy), cost of
water supply, waste disposal and IT services, as well as cleaning costs for the
facility and its surroundings (e.g., cleaning materials, maids, janitor, etc.).

Operational facility costs are significant in the life cycle cost structure. Operating
costs include energy costs (electricity and heating energy), cost of water supply,
waste disposal and IT services, as well as cleaning costs for the facility and its
surroundings (e.g., cleaning materials, maids, janitor, etc.).
 The emphasis under operating costing is on the ascertainment of cost of rendering
services rather than the cost of building the facility.
Whilst operational costs are cost incurred in the day-to-day operation of
an organisation, capital costs are costs associated with one-off expenditure on
the acquisition, construction or enhancement of significant fixed
assets including land, buildings and equipment that will be of use or benefit for
more than one financial year.

Whilst it is generally relatively straight forward to identify expenditure to acquire

or construct fixed assets, distinguishing between enhancements and
operational costs such as repairs, maintenance, or replacement can be difficult. Very
broadly, enhancements should either:

▪ Significantly lengthen the life of the asset.

▪ Significantly increase the value of the asset.
▪ Significantly increase usefulness of the asset.

In construction, capital costs and operational costs can be considered to be associated

with separate, distinct stages, with capital costs during acquisition and construction,
and then a 'handover' to operational costs when the client takes possession of
the completed development.

Capital costs and operational costs can be seen as competing needs, with
higher capital costs often resulting in lower operational costs, as a
higher quality asset may have lower maintenance and repair costs, lower utilities
costs, and so on. Whilst sometimes the division between capital and
operational costs can be one of necessity, based on the resources available to
the client at the time, it can be a calculated decision based on assessment of whole-
life costs

Preventive Maintenance costs

Preventive maintenance activities consist of works and repairs that are repeated at
approximately the same time intervals, depending on the service life of the facility
or its structural elements. These activities are conducted to keep the facility in a
desired state of repair.
Preventive maintenance is the type of maintenance that involves taking the
necessary precautions and actions to prevent accidents or equipment failures from
occurring before they happen. For example: performing regular business and
equipment inspections, cleaning and lubricating essential equipment, and tidying
your business’s grounds are all examples of preventive maintenance.
Any type of maintenance that is not reactive (i.e., a response to a problem,
malfunctioning equipment, technology, etc.) is preventive, and there are many
different types of preventive maintenance that pertain to different areas of a business,
or specific timing.
Types of preventive maintenance
Time-based/calendar-based maintenance
Time-based maintenance (TBM), also called periodic maintenance, refers
to routine maintenance tasks performed on an asset at fixed time intervals,
regardless of its condition.
Examples of calendar-based maintenance might include servicing your air
conditioning a month or two out from summer, replenishing salt for soft water
systems, and cleaning vents to comply with health standards at least twice per
year.

Usage-based maintenance
If your business uses certain machinery or equipment every single day, it’s a
good idea to track usage (i.e. equipment monitors, operating hours, production
cycles), especially if the equipment doesn’t automatically produce tickets or
notifications when a certain number of operating hours have been reached.
This is referred to as usage-based maintenance.
Whether it’s a vehicle oil change, or an essential piece of machinery that has
reached X number of hours, staying on top of proper care and maintenance
will ensure long-lasting use of important equipment.

Predictive maintenance
Predictive maintenance relies on sensors to capture information about
equipment (i.e., temperature sensors, or vibration sensors), and is generally
specific to technology that can trigger work orders if a machine or appliance
is in need of an inspection or upgrade. Predictive maintenance entails
monitoring the condition of essential machinery to track performance, and to
detect possible defects that could result in a system crash.
 This type of preventive maintenance might be especially relevant for
manufacturing, food production plants, power and energy industry where the
information gleaned from predictive maintenance will allow for maintenance
managers to predict when system downtimes may occur based on previous
patterns, and to schedule maintenance tasks to reduce crashes on critical
operational equipment.

Prescriptive maintenance
Similar to the patterns that predictive maintenance analyzes, prescriptive
maintenance uses advanced analytics, machine learning, and artificial
intelligence to generate predictions about maintenance, and also act on them.
What does this mean? Basically, prescriptive maintenance makes
recommendations to improve system operations, and also follows up on its
own to produce a work order and oversee the entire process.
Sound advanced? That’s because it probably is for most businesses. As long
as you’re manually checking your essential equipment, and staying on top of
manufacturer recommendations and inspection procedures, you’re already
well on your way to effective preventive maintenance no prescriptive
maintenance required.
Now that you understand more about the different types of preventive
maintenance, we’ll dive into the benefits and potential pitfalls of standard
preventive maintenance practices.

Benefits of preventive maintenance

➢ Preventive maintenance will decrease business downtime and closures due to
unexpected equipment failures;
➢ Preventive maintenance will increase equipment life expectancy, so you’ll
spend fewer dollars in the long run;
➢ Preventive maintenance will ensure all equipment and employees work only
during scheduled hours, eliminating the need for paying overtime due to
unexpected machinery breakdowns, etc.
➢ Preventive maintenance will significantly reduce safety risks for employees
and customers, thereby reducing the costly risk of lawsuits and workers’
comp.
 ➢ Preventive maintenance means less energy consumption for your assets and
equipment due to high levels of operational efficiency, which will reduce your
utility bills.

Disadvantages of preventive maintenance

• Budget constraints and considerations, which may not be able to support all
relevant preventive maintenance procedures and inspections that ideally need
implementation;
• Time-consuming scheduling and inspections, which may not be feasible given
the volume of customers, responsibilities, etc. on any given day;
• Staff time and resources, which may mean that certain employees work
overtime, or are taken away from their daily duties in order to focus on
preventive maintenance practices;
• Overkill of preventive maintenance, which can lead to unnecessary money
spent on precautions that aren’t needed.
• Requires planning, especially if you’re just starting out with a brand-new
preventive maintenance program and there are no preexisting statistics and
records to work with. Proper planning is crucial to implement an effective
preventive maintenance program, which will ultimately take time.

Costs of replacement and repairs

Costs of replacement and repairs are costs of activities that are undertaken
to take into account the changes to particular elements, materials and
structures.

Building repairs and maintenance services mainly includes works undertaken

for maintaining proper condition of buildings, its services and works in
ordinary use. The use for which buildings are designed is the main factor in
determining the required standard of maintenance. Excessive building
maintenance should be avoided. At the same time, building maintenance
should ensure safety to the occupant or the public and should comply with the
statutory requirements. The need also depends upon intensity of usage.
Types of Building Repair and Maintenance Services
The types of building repair and maintenance service works are:
Day to Day Repairs
Day to day repairs include service repairs which arises from time to time in the
services of the buildings such as in plumbing works, water supply, etc. Examples
for such repairs are removing chokage of drainage pipes, manholes, restoration of
water supply, replacement of blown fuses, repairs to faulty switches, watering of
plants, lawn mowing, hedge cutting, sweeping of leaf falls etc. The purpose of this
maintenance service is to ensure satisfactory continuous functioning of various
services in the buildings.

Annual Repairs
This maintenance service is carried out to maintain the aesthetics of buildings and
services as well as to preserve their life, some works like white washing,
distempering, painting, cleaning of lines, tanks etc. are carried out periodically.
These works are planned on year-to-year basis.

Special Repairs
Special repairs of building are undertaken to replace the existing parts of buildings
and services which get deteriorated on ageing of buildings. It is necessary to
prevent the structure & services from deterioration and restore it back to its
original conditions to the extent possible.

Additions and Alterations

The works of additions/alterations are carried out in buildings to suit the special
requirements of occupants for functional efficiency. The facilities in buildings are
updated by carrying out such works.

• Day to day repairs service facilities

• Annual repairs
• Special repairs
In addition to above, additions and alterations Works in the buildings, Supply &
maintenance of furniture & furnishing articles should also be done.

Reactive maintenance activities

Reactive maintenance activities are difficult to predict because it is almost
impossible to anticipate all possible failures. The number of these activities is
large because reactive maintenance activities cover the cost of repair and
replacement of components and materials due to failures and defects.
Reactive maintenance, unlike preventive maintenance, involves responding to
equipment malfunctions or building breakdowns after they occur in order to restore
the asset to normal operating condition. This differs from the proactive maintenance
strategy of aiming to anticipate equipment issues ahead of time, and taking steps to
prevent them from occurring.

Corrective maintenance is any type of action that targets and repairs a building defect
so that the building can be restored to proper working order. One plus of corrective
maintenance is that the defect may be caught or noticed before it causes a significant
problem, or results in a total building breakdown.

The important thing to remember about corrective maintenance is that it does not
require the repair of a totally-busted asset. Rather, corrective maintenance is
performed to correct a defect, or a potential problem area, in a building. This gives
the business more time to respond to issues, and even mimics preventive
maintenance by allowing for the opportunity to correct problems before they
escalate.

Corrective maintenance is often performed on faulty parts or places that are

discovered while other repairs are being made to the same building. For instance, if
you’re installing new carpeting in your office and discover mould growth beneath
the old carpet, you would then take steps to understand and correct the conditions of
such growth.

How does corrective maintenance relate with cost?

The costs associated with reactive maintenance vary greatly, depending on the scope
of repairs needed and the value of the item in question.

In general, it’s a pretty safe statement that reactive maintenance is a cost-effective

approach upfront, but ends up becoming more costly and more trouble than it’s
worth—for example, when the plumbing system or electronic system breaks down
in the midst of peak use, and when the building needs to seek outside assistance for
extensive repairs. Both of these become costly, time-consuming processes that
perhaps were never factored into a budget.
Conclusion.

Maintenance costs can take various forms depending on the type of asset involved.
For example, the maintenance costs of a motor vehicle vary from the maintenance
cost of a real estate property. The owner of a truck will incur costs in oil changes,
engine repairs, tire replacement, engine tune-ups, radiator flushing, etc.

The expenses are usually debited in the repairs and maintenance account of the motor
vehicle. However, if a truck owner adds a hydraulic lift to the truck, it increases the
performance level of the asset, and the cost is capitalized. It means that the cost will
not be expensed, and it is instead depreciated over the truck’s useful life.

On the other hand, the maintenance costs of a purchased home may include
expenses, such as lawn care, electrical repairs, roof repairs, plumbing, replacement
of worn-out house appliances, fixing damaged fixtures, etc. Hazard
insurance against losses from natural events, such as tornadoes, earthquakes,
wildfires, and storms, is also included as part of the maintenance costs of a property.

However, major repairs, such as replacing the entire roof of a building, are not
treated as maintenance expenses. The expense extends the useful life of the asset,
and the cost incurred in roof replacement is capitalized and depreciated over the
property’s useful life.