Help With Variable Outgoings Budgets


We're all aware of the time it takes to prepare variable outgoing budgets - it could be so much simpler! Good record keeping minimises the time required in their preparation – because much of the information is already to hand.

Annual budgeted expenditure on maintenance can be of three kinds:

  • Committed expenditure, which includes tasks that occur every year as part of planned maintenance, and include things covered by maintenance contracts;
  • Variable expenditure, which includes regular tasks within an overall program of planned maintenance that may not occur every year. This information will allow the building manager to exercise some discretion and prioritise many tasks;
  • Managed expenditure, defined as works carried out entirely at the building manager's discretion - primarily emergency corrective maintenance.

The aim of a preventative maintenance budget and plan is to reduce managed expenditure over time as far as possible and replace it with variable expenditure.

Regular inspections help by identifying how components are performing and when they might fail.

Budgets need to include costs for inspections, replacement of materials or finishes, cleaning and any unforeseen breakdowns or repairs. Budgeting for these items will become more accurate over time if detailed records of maintenance expenditure are kept.

Budgets need a simple control system, with regular and frequent reports on actual and committed expenditure.