Preventive Plans Save Money
As part of the bundled services agreement with a Florida based REIT, Divisions automatically performs services that are within the set scope of work for a property under a predetermined annual budget. If any one repair is expected to exceed 20% of the budgeted amount for that line item, Divisions is required to get a work order and bill separately for that repair. When the annual budget was exceeded by 9% in a single year, Divisions and the customer set out to identify and correct the problem areas. It quickly became apparent that lighting repairs were the biggest contributor to the budget overages - nearly $500,000!
While evaluating the standard methods for servicing lighting issues, Divisions identified several ways to reconstruct the process to add efficiency and increase the burn success at the properties.
- Keep good data
By tracking bulb use and providing detailed descriptions of repairs, we were able to troubleshoot recurring problems while also anticipating bulb replacement needs. This ended the cycle of replacing bulbs that were repeatedly burning out because of a larger unidentified issue. This also facilitates better understanding of repairs that should fall within existing warranties.
- Establish a regular route
Service calls for lighting can be expensive because of the need to bring in trucks that can reach the height of the parking lot lights. For this reason, most properties wait until there several lights out to call for repair. By establishing a regular maintenance route with our electrical partner, we have been able to maximize our use of the trucks. With regularly scheduled maintenance calls, it’s easier to just reconfigure the route than to make special calls. Because we’re no longer waiting for several lights to be out before making the call, the properties are operating with a higher burn level, decreasing the property owner’s liability and contributing to a nicer looking property.
- Conduct frequent monitoring
Standard protocol is to inspect the lighting on a property quarterly. By increasing the frequency to a monthly inspection, issues are identified faster and resolved with more immediacy. This has reduced the amount of tenant complaints.
After just four months of the planned maintenance program the customer saw a major difference in spend. A budget that was previously over by 9% was now under by $200,000 after one year. In addition to this, the customer has experienced a reduction in insurance claims related to insufficient parking lot lighting, although exact figures are not available to date.