What is a Lifecycle Audit

A Lifecycle Audit is a statistical method that predicts for each facility when individual components and subsystems are likely to fail and what the replacement cost will be. For this reason, a lifecycle audit is also called facility subsystem modeling.

This methodology uses construction and renovation dates, component unit costs, and component life cycles to predict annual facility renewal needs. Replacement costs and life cycles are based on industry standards but may be adjusted to reflect actual experience at an institution.

This methodology was first described by Beidenweg and Hutson in 1982 and more recently elaborated on in NACUBO's December 1998 issue of Business Officer. In this study, Rick Biedenweg describes the key strengths of this approach.

• The model is simple to understand.
• The model can be tailored to the individual institution through the use of actual facilities data.
• Lifecycle Auditing accommodates the cyclical nature of facilities deterioration.
• Lifecycle Auditing calculations are based on industry standards for component life cycles and replacement costs.
• The model can be used to provide institutions with both annual facility reinvestment needs and deferred maintenance needs.
• The model can accommodate planning for facility obsolescence and can indicate when specific building components are due for complete renovation or reconstruction.

Lifecycle Audit Features

• Objective Data Collection. Consistency of data is dependent on software, not inspector. Reports from different inspectors will be highly similar.
• One-Time Data Collection. Data is automatically updated by the computer every year. Inspections only need to be performed once.
• Output Credibility. Reports are easy to understand and data is believable because deferments are based on component lifespan, not subjective inspector analysis.
• Lower Initial and Ongoing Cost. Inspection costs average 6 cents per gross square foot. Annual maintenance costs are negligible.