Operating & Maintenance (O&M) Budgeting
Typically an O&M budget is increased by x% or decreased by y% with no understanding as to the impact those changes will make. Conventional budgeting techniques work well for accounting, marketing, finance, and human resources where a certain percentage cut yields a nearly parallel reduction in costs. However, there is an inverse-square relationship in deferring maintenance. Dowler Construction Services will work with the owner to create an accurate O&M budget.
There is a substantial, on-going impact of facilities on balance sheets and income statements. A fact-based budget will ...
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accurately reveal what it costs to operate the facility, removed from emotion
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when used with an annualized budget, assist in identifying peaks and valleys so that contract dates can be shifted to level out cash flow
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improve budgeting when variance analysis of budget-versus-actual is performed on a monthly basis
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allow for intelligent decisions to be made when there is discussion about belt tightening
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validate and justify budget assumptions
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assist in financing.
Capital Reserve Fund Analysis & Planning
Too often there is no long range, fact-based capital planning. Large capital investments can be squandered if no thought is given to the longer term effects of throwing money at a perceived, rather than actual need. Dowler Construction Services will perform a facility capital reserve fund analysis to assist the owner in creating a capital plan and show the owner how to make effective use of the available information.
A capital plan based on facts will assist the owner by ...
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eliminating the "uh-oh" factor because assets have been properly identified for repair / replacement
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allowing the owner to forecast when major expenses should come due
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allowing for informed timing of capital / improvement projects
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optimizing capital planning decisions
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validating and justifying budget assumptions
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allowing for systematic evaluation of all potential projects at the same time
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stabilizing debt and consolidating projects to reduce financing costs
Tax-advantaged Strategies
Tax-advantaged strategies allow owners to favorably maximize the value of their facility assets through reduced operating expenses or improving cash flow.
Strategies Dowler Construction Services have used include:
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property tax assessment adjustment
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retirement study
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cost segregation study
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179D tax credit
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ADA tax credit
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1031 exchange
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PACE financing