CEFP QUESTIONS WELL-STRUCTURED STUDY NOTES
CONTAINING VERIFIED CORRECT ANSWERS
AND CLEAR TOPIC EXPLANATIONS (2025–
2026 EDITION)
Capital Renewal/Replacement - CORRECT ANSWER -A systematic management process of
planning and budgeting for known future cyclical repair and replacement requirements that
extend the life and retain the usable condition of facilities and systems, not normally contained
in the annual operating budget. Includes major activities that have a maintenance cycle in
excess of one year (e.g., replace roofs, paint buildings, resurface roads)
Facilities Condition Index (FCI Index) - CORRECT ANSWER -A comparative industry
indicator/benchmark used to indicate the relative physical condition of a facility, group of
buildings, or entire portfolio "independent" of building type, construction type, location, or cost
Deferred Maintenance (DM) Backlog - CORRECT ANSWER -Total dollar amount of existing
maintenance repairs and required replacements (capital renewal) that were not accomplished
when they should have been, not funded in the current fiscal year, or otherwise deferred
Strategic Capital Development Model - CORRECT ANSWER -Instead of periodic and stand-alone
studies of elements of the capital needs of an institution, this model defines six phases of an
integrated and comprehensive ("soup-to-nuts") planning process
Facilities Condition Assessment - CORRECT ANSWER -Continuous systematic approach to
identifying, assessing, prioritizing, and maintaining the specific maintenance, repair, renewal,
and replacement requirements for all facility assets
Facilities Audit - CORRECT ANSWER -Method of assessing existing buildings and infrastructure to
measure the extent of maintenance backlogs
Recapitalization - CORRECT ANSWER -Periodic recurring costs for replacement/renewal projects
and one-time funding for improvements and programmatic projects
, Trade Based/Central Shop Organization - CORRECT ANSWER -The plumbers report to one
supervisor, the electricians to another, and the HVAC mechanics to another. The trade staff is
then dispatched to jobs in any facility from the central pool of resources
Zone Based Organization - CORRECT ANSWER -Assigns a mixture of trade expertise to care for a
specific set of buildings
Function Based Organization - CORRECT ANSWER -Structured around the type of work. One
work group performs the preventive maintenance, while another group responds to service
calls
Time and Material Agreement - CORRECT ANSWER -A customer is charged a predetermined
hourly rate for labor plus the cost of materials and equipment needed for a job
Fixed Price Agreement - CORRECT ANSWER -Useful when there is a hard limit on the funds
available
Guaranteed Maximum Price Agreement - CORRECT ANSWER -Sets an upper limit on the cost to
the fund provider, but allows for a lower cost when a project goes well
Unit Rate Agreement - CORRECT ANSWER -Defines a value for a unit of work such as the cost of
excavating a cubic yard of rock or installing a foot of six- inch water main
Maintenance Reinvestment Rate (MRR) - CORRECT ANSWER -The annual value of maintenance
and repair (M&R) divided by the facility's current replacement value (CRV).
Custodial Audit - CORRECT ANSWER -Documents past and current practices, and determines the
effectiveness of those practices in supporting the mission of the department and institution
CONTAINING VERIFIED CORRECT ANSWERS
AND CLEAR TOPIC EXPLANATIONS (2025–
2026 EDITION)
Capital Renewal/Replacement - CORRECT ANSWER -A systematic management process of
planning and budgeting for known future cyclical repair and replacement requirements that
extend the life and retain the usable condition of facilities and systems, not normally contained
in the annual operating budget. Includes major activities that have a maintenance cycle in
excess of one year (e.g., replace roofs, paint buildings, resurface roads)
Facilities Condition Index (FCI Index) - CORRECT ANSWER -A comparative industry
indicator/benchmark used to indicate the relative physical condition of a facility, group of
buildings, or entire portfolio "independent" of building type, construction type, location, or cost
Deferred Maintenance (DM) Backlog - CORRECT ANSWER -Total dollar amount of existing
maintenance repairs and required replacements (capital renewal) that were not accomplished
when they should have been, not funded in the current fiscal year, or otherwise deferred
Strategic Capital Development Model - CORRECT ANSWER -Instead of periodic and stand-alone
studies of elements of the capital needs of an institution, this model defines six phases of an
integrated and comprehensive ("soup-to-nuts") planning process
Facilities Condition Assessment - CORRECT ANSWER -Continuous systematic approach to
identifying, assessing, prioritizing, and maintaining the specific maintenance, repair, renewal,
and replacement requirements for all facility assets
Facilities Audit - CORRECT ANSWER -Method of assessing existing buildings and infrastructure to
measure the extent of maintenance backlogs
Recapitalization - CORRECT ANSWER -Periodic recurring costs for replacement/renewal projects
and one-time funding for improvements and programmatic projects
, Trade Based/Central Shop Organization - CORRECT ANSWER -The plumbers report to one
supervisor, the electricians to another, and the HVAC mechanics to another. The trade staff is
then dispatched to jobs in any facility from the central pool of resources
Zone Based Organization - CORRECT ANSWER -Assigns a mixture of trade expertise to care for a
specific set of buildings
Function Based Organization - CORRECT ANSWER -Structured around the type of work. One
work group performs the preventive maintenance, while another group responds to service
calls
Time and Material Agreement - CORRECT ANSWER -A customer is charged a predetermined
hourly rate for labor plus the cost of materials and equipment needed for a job
Fixed Price Agreement - CORRECT ANSWER -Useful when there is a hard limit on the funds
available
Guaranteed Maximum Price Agreement - CORRECT ANSWER -Sets an upper limit on the cost to
the fund provider, but allows for a lower cost when a project goes well
Unit Rate Agreement - CORRECT ANSWER -Defines a value for a unit of work such as the cost of
excavating a cubic yard of rock or installing a foot of six- inch water main
Maintenance Reinvestment Rate (MRR) - CORRECT ANSWER -The annual value of maintenance
and repair (M&R) divided by the facility's current replacement value (CRV).
Custodial Audit - CORRECT ANSWER -Documents past and current practices, and determines the
effectiveness of those practices in supporting the mission of the department and institution
