The problem with most financial projections is they often look at present cost. But, they should be looking at future cost. We do this by adding contingency rates. When a company first begins planning for the future, the timelines and funding requirements can be somewhat obscured. When this happens it often leads to inaccurate financial forecasts.
Facilities Planner has solved that. Also, we make it easy to setup and adaptable if conditions change. Furthermore its transparent for those who need the history behind the numbers. We developed our software with the help of our affiliates and other contributing organizations. We have equipped our users with a unique ability to communicate needs through valid and realistic financial projects.
Facilities Planner will help you provide information to necessary departments. So, your board, shareholders, and C Suite now have a more valid financial prospectus. And, everyone has a more realistic view on all your organizations upcoming projects.
Contingency Rates Specific to Your Area
Have new construction projects happening in the next five years? No problem. What about renovation or refresh projects that need to be addressed next summer? Again, no problem. Each contingency rate can be customized by project type, timeline, and even down to the facility level.
Applied Contingency View (ACE™)
Our ACE view allows for Facilities Planner to do all the heavy lifting. Because, with a few clicks of a button, your company can add specific projects along with beginning costs. Facilities Planner can automatically apply all the preset contingencies to that project. This will in turn give you realistic future costs.
Imagine receiving preliminary costs for a new expansion building – let’s say $26 Million. If somehow your company was able to start, build and complete that project in the next twelve months that figure may be accurate. The problem is that more often than not, your organization doesn’t plan to start construction on that building for another two years.
Market conditions may shift. Construction costs may rise. All sorts of costs associated with a project of that size can increase. How do you account for the future value of money? Your company uses Facilities Planner, that’s how.