A recent Gallup poll suggests that Americans plan to spend an average of $906 on holiday gifts this season. And while that figure may not be surprising, when the calendar flips to January we are often caught off guard concerning the negative effects of our spending: higher than expected credit card statements, tight finances, increased stress, and limited funds for emergencies. Overspending (or under budgeting) isn’t limited to consumers—many businesses run into financial challenges toward the end of the year which can carry over into the year ahead.
If your business experiences financial strain, it can be easy to overlook or defer pavement maintenance. However, without funds to complete routine repairs or address liabilities, a parking lot can quickly deteriorate and end up costing far more than spending up-front on preventative care. To ensure your pavement assets aren’t buried on the list, work with your paving partner over the winter to assess your parking lots and develop a comprehensive budget.
Lay the Foundation:
Facilities are aging, but budgets aren’t growing at the same rate. Therefore, a good budget starts with accurate data, and a trusted paving partner can help you establish a baseline of pavement maintenance expenses. A statistical analysis of your portfolio should be conducted, as well as an examination of your past spending, cost drivers, geography, and other variables specific to your location. Close examination of this data, along with pavement assessments, will help create an accurate picture of the current condition of your assets and create the foundation for your paving budget.
Use Your Dollars Wisely:
An important part of budgeting is prioritizing the work to make sure each dollar invested is used wisely to give your business the largest return. A trusted partner can help by evaluating your properties as part of a pavement assessment. During the process, specific areas are assigned a rating corresponding to condition and quality of the pavement. Then, each property is rated as a whole. Once the ratings are established, properties can be compared and prioritized according to condition, repair needs, and budget available.
Get Ahead of the Curve:
In addition to ongoing maintenance, it’s important to map out and budget for future capital expenses. Planning for a new facility, parking lot expansion, or asphalt resurfacing requires significant time and capital funds to complete. Work with your paving partner to include these projects in your 2-3 year budget to secure adequate funding up front, plan for the projects in advance, and minimize unbudgeted expenses down the road. Typically, the earlier in the year you can execute work, the more money you will save. Plus, knowing the cost for materials and labor can help you compare bids on an apples-to-apples basis and procure the right contractor for the job.
With a million-and-one things on your holiday “to-do” list, planning for paving projects might get bumped to the bottom. Don’t let it slip—Let’s Pave can help you check it off your list. After all, planning, prioritizing, and budgeting for preventative care as well as future capital projects goes a long way. It ensures the safe usability of your pavement assets and creates a positive image of your brand in the New Year and beyond.