Getting Results with Archibus

Capital Budgeting

Capital budgeting is an essential part of an organization’s financial plan. The capital budgeting process is a systematic decision process that aims to allocate available resources in a manner that will optimize the long-term financial viability of the organization.

Capital projects, such as major capital improvements, plant adaptations, deferred maintenance, building expansions, and facilities renewal, are expensive undertakings that require careful analysis and funding. They represent a long-term commitment of funds for changes that will benefit the organization for years.

You can use the Archibus Connectors to import historical project and invoice data so that you can generate the Historical Project Analyzer.

The Archibus Capital Budgeting application provides the structure and tasks for the entire capital budgeting process, and enables the many parities involved in capital budgeting to work collaboratively:

requesting capital projects
prioritizing capital projects
estimating costs of capital projects
approving capital projects
allocating funds for capital projects
generating a useful capital budget to plan for your improvements

Capital Budgeting
Location	Archibus non-SaaS Capital Projects / Capital Budgeting Archibus SaaS Capital Projects / Capital Budgeting processes
Business Result	Multi-year capital budgets that summarize all planned activity in a single, consistent format. Structured information and decision support that management needs to assemble the capital budget. A systematic and collaborative approach to communicating the current mission directions and to requesting, evaluating, estimating, and approving capital projects.
Used By	Project Requestors Facilities Managers Approving Managers Executives
Reasons for Automating	Identify, fund, and execute strategic change. Provide an organization-wide structure for capital project request, prioritization, estimation, allocation, and approval. Develop and share a corporate knowledge base of capital programs and projects that can be accessed by all key stakeholders over the Web or a corporate Intranet. Orchestrate a collaborative discussion of the most effective use of resources for future projects across your entire portfolio.
Prerequisite Applications	Condition Assessment can optionally first be used to identify weaknesses in the facility that need to be addressed with a capital plan.
Results/Reports	Historical Project Analyzer Project Budget vs Spend Analyzer Capital Budget Budget by Program Type Approved Project Funding by Year Project Profile Scenarios by Fund or by Facility Condition Index Unallocated Program Funds Available Capital and Expense Funds Project Funding by Fund
Applications Using the Results of this Application	Projects

The following users are typically involved

User	Tasks
Project Requestors	Request capital improvements. This typically includes personnel who are familiar enough with operations and procedures to make a reasonable request, such as facilities managers, department managers, division managers, business unit heads, company executives, safety compliance officers, or member of the conditions assessment team.
Facilities Managers	Work with all phases of the capital budgeting process: define the organization’s capital programs, which outline the main types of expenditures within a capital budget. enter project requests into the system. estimate baseline costs and schedules of capital projects. oversee the approval process for capital projects. evaluate funding scenarios for capital projects. allocate funding for capital projects. create the capital budget, which rolls up funding allocation data from the individual capital projects and provides a long-term plan for financing capital expenditures.
Approving Managers	Receive email notification that a project is awaiting their review and approval. Access the project over the Web to review it.
Executives	Need to know the long-term vision of their business and the facilities necessary to support this vision: what are the major renovation and expansion projects (and their costs) for the next five, ten, and fifteen years? They view multi-year capital budgets that summarize all planned activity in a single, consistent format.