FCI: A Valuable Metric—But Not the Whole Story in Facility Planning

D B
Apr 15
1 min read

By Devraj Balbir

In facility and capital project planning, few metrics are as widely used—or as misunderstood—as the Facility Condition Index (FCI). It’s a simple formula with powerful implications:

FCI = Deferred Maintenance ÷ Current Replacement Value

By expressing the cost of outstanding repairs as a percentage of a building’s replacement cost, FCI gives a quick snapshot of physical condition. A lower FCI means a building is in relatively good shape; a higher FCI signals mounting maintenance needs and possible capital risk.

Why FCI Matters

Objective Benchmarking: Helps compare buildings across a portfolio.
Capital Planning: Prioritizes where investment is most needed.
Risk Awareness: Tracks how deferred maintenance is growing over time.
Communication Tool: Makes conditions easier to explain to leadership and funding bodies.

But Here's the Catch: FCI Isn’t Everything

While FCI is a valuable planning metric, it has a narrow focus—it only reflects deferred maintenance and doesn’t consider the full picture of an asset’s performance or strategic value. It tells you how broken something is, not how useful, efficient, or relevant it is.

Key Limitations of FCI:

Ignores functionality and space utilization
Doesn’t assess energy efficiency or sustainability
Overlooks compliance, accessibility, and modernization needs
Doesn’t measure how well a facility supports your organization’s mission

The Takeaway: FCI Is a Starting Point, Not the Destination