In Australia’s property market, where every square metre carries value and regulations are anything but forgiving, the way you manage your building’s upkeep can make or break its long-term performance. This means your facility management strategies should evolve beyond fixing problems as they occur to choosing the right approach to prevent them.
For most property owners and managers, the choice boils down to three approaches: preventive, reactive, or predictive facility management services.
In this article, our experts at Connect Facilities will compare the three approaches, outline their strengths and limitations, and help you design a strategy that protects both your property and your peace of mind.
What Are Preventive, Reactive, and Predictive Maintenance?
While terms like preventive, reactive, and predictive are often used interchangeably in casual conversation, in professional facility management, they refer to distinct approaches, each with its own implications for cost, compliance, and asset performance.
What is preventive maintenance (planned maintenance)
Preventive maintenance is a proactive, scheduled approach that involves inspecting, servicing, and performing minor repairs at regular intervals to prevent equipment or infrastructure from failing. It often includes quarterly HVAC servicing, annual fire system inspections, and regular gutter cleaning in strata complexes.
Benefits:
- Reduces the likelihood of unexpected breakdowns.
- Extends asset lifespan.
- Helps meet compliance obligations under Australian safety and building regulations.
Limitations:
- Requires an upfront commitment to planning, budgeting, and scheduling
What is reactive maintenance (run-to-failure)
Reactive maintenance addresses problems after they occur. For example, replacing a burst pipe after water damage has already occurred or calling an electrician when an office lighting circuit fails.
While acceptable for minor, non-critical circumstances, relying heavily on reactive maintenance can increase risk exposure, particularly in strata or commercial properties where delays affect multiple stakeholders.
Benefits:
- Minimal upfront planning.
- Potentially lower short-term costs for low-priority or non-critical assets.
Limitations:
- Unpredictable expenses and possible budget blowouts.
- Increased downtime and tenant disruption.
- Higher long-term costs due to accelerated wear, emergency call-out fees, and collateral damage.
What is predictive (proactive) maintenance
Predictive maintenance builds on preventive practices by using technology and data analytics to anticipate when a component is likely to fail. By using IoT sensors, thermal imaging, and condition-monitoring software to track performance in real time, facility managers can trigger servicing only when indicators suggest it’s necessary.
Benefits:
- Maintenance is performed only when necessary, maximising efficiency.
- Early detection minimises costly breakdowns and reduces downtime.
- Supports sustainability by avoiding premature part replacements.
Limitations:
- Higher initial investment in technology and training.
- Best suited for high-value or critical systems where downtime is costly.
Why Reactive Doesn’t Work Long-Term for Australian Property Owners
Opting for a reactive maintenance strategy might seem economical at first. But for property owners in Australia, especially those overseeing strata, mixed-use, or commercial portfolios, this approach carries significant hidden costs and risks.
- Skyrocketing emergency repair costs
Emergency service calls, expedited delivery of parts, and after-hours labour all add up quickly. Generally, these can cost 4 to 10 times as much as scheduled preventative actions. For example, replacing an HVAC compressor in crisis mode can cost thousands more than routine check-ups would have prevented.
- Tenant disruption and frustration
In strata properties or commercial buildings, downtime directly affects occupants. Over time, these can erode tenant trust and can lead to higher turnover or strained relationships with owners’ corporations. Dissatisfied tenants are also more likely to escalate complaints to regulatory bodies or withhold lease renewals.
- Accelerated asset deterioration
According to a 2016 survey, ageing equipment is the leading cause of 50% of unplanned downtimes. As these systems fail, they can also damage connecting systems, leading to bigger issues and larger, more expensive replacement projects.
- Compliance and safety risks
Many Australian building systems, such as fire alarms, emergency lighting, and lifts, are governed by strict compliance schedules under the National Construction Code (NCC) and relevant state-based regulations. Missing these requirements because you rely on reactive repairs can result in fines, legal liability, or insurance claim rejections.
A building that fails a compliance inspection can also face reputational damage, particularly in strata-managed communities where owners share the risk.
The Value of Preventive (and Predictive) Maintenance
In facility management, preventive and predictive facility management services shift the focus from “fixing what’s broken” to “preventing it from breaking in the first place,” using a combination of scheduled servicing and data-driven monitoring. These provide the following benefits:
- Cost savings and operational efficiency
According to Upkeep, companies can save between 12% to 18% using preventive maintenance, and each dollar spent on this service saves an average of $5 more later on. This is achieved through fewer emergency repairs, reduced overtime labour, and a more efficient allocation of resources.
- Reduced downtime and extended asset life
Routine inspections, servicing, and equipment calibration minimise unexpected breakdowns, ensuring facilities run smoothly. It also prevents costly disruptions to tenants or business operations.
- Improved compliance and safety
Preventive maintenance ensures assets like fire safety systems, emergency lighting, and electrical components are tested regularly, reducing the risk of non-compliance penalties and ensuring the safety of occupants.
- Data-driven decision-making
Predictive maintenance uses real-time data from IoT-enabled systems to guide repair schedules and capital planning. This enables property owners to plan budgets more accurately, prioritise critical upgrades, and align maintenance strategies with long-term operational goals.
- Sustainability and energy efficiency
Well-maintained systems operate at peak efficiency, reducing energy consumption and environmental impact. For example, clean HVAC filters and properly sealed ductwork can cut energy use, contributing to a lower carbon footprint and reduced utility bills.
- Enhanced tenant satisfaction
Smooth operations translate to fewer complaints, minimal disruptions, and a better overall tenant experience, which is critical for retaining occupants and maintaining steady rental income.
Hybrid Strategies: Mixing Preventative with Reactive Approaches
For many Australian property owners, a hybrid approach to facility management services strikes the right balance between efficiency and cost control.
Preventative maintenance ensures that high-value, high-risk assets are regularly inspected, serviced, and kept compliant with Australian safety standards. However, applying that same intensive schedule to every asset is often unnecessary and can drain budgets.
A reactive element ensures that when minor, non-critical assets fail, resources can be deployed without the burden of constant monitoring.
Best Practices for Hybrid Facility Management
A well-structured hybrid plan requires clear boundaries and prioritisation.
- Prioritise Critical Assets
Implement scheduled upkeep for systems where failure poses the highest safety, compliance, or operational risk. - Allocate a Reactive Budget
Set aside funds specifically for unplanned maintenance events. This prevents reactive responses from derailing preventative programs. - Align with Compliance Risk
Use compliance requirements as a guide. Assets with stringent legal or safety obligations warrant preventative investment. Others can be maintained reactively without breaching standards. - Document Protocols
Create clear workflows for both maintenance types, ensuring contractors, in-house teams, and stakeholders know exactly when to trigger preventative checks or reactive interventions.
Partner with Connect Facilities for Smarter Facility Management
Choosing between preventive, reactive, or hybrid facility management is about selecting the strategy that aligns with your property’s needs, budget, and long-term goals.
At Connect Facilities, we provide tailored facility management services designed to keep your property running at its best. Our team combines industry expertise with innovative solutions to ensure your property operates efficiently, safely, and cost-effectively.
Contact us today to discover how we can help you optimise your building’s performance and protect your investment.
