Capital Needs Assessment

 

A Capital Needs Assessment (CNA) is a budgeting tool to ensure long-term viability of a project.  Often LCI combines this service with their Building Maintenance Manuals, because without proper maintenance, building components will deteriorate and/or fail at a much quick rate than expected.

 

The financial models are prepared in a spreadsheet format (EXCEL) allowing clients to manipulate and modify the assumptions and actual costs.  This is a budgeting tool which can be modified from year to year.

 

 

LCI’s approach to a Capital Needs Assessment (CNA) project includes the following key considerations:

 

1. Perform a building assessment, employing all necessary sub-consultants to ensure a thorough review of all major building components.

 

2. Prioritize the deficiencies and deferred maintenance by ranking ranking them into one of the following 5 categories:

 

  • Category 1:  Immediate life safety issue
  • Category 2:  Potential for significant further damage if left unattended
  • Category 3:  Conditions requiring one time upgrades which are not immediate threats and once resolved should require normal maintenance
  • Category 4:  Deficiencies in regular maintenance
  • Category 5:  End of useful life replacement

 

3. Provide reports detailing the recommendations for correction to all deficiencies and/or identifying areas where further investigation is warranted

 

4. Provide estimated costs for repair

 

5. Included in the CNA is a forecast of the projected capital costs and shortfalls based upon the present funding and budgetary assumptions.