What is Current Replacement Value and Why Should You Care?

This article provides a succinct discussion of the concept of current replacement value (CRV) as used by building managers. CRV is defined as “the actual cost of replacing the facilities…not the book value” and “the total expenditure in current dollars required to replace a facility…[to] meet current acceptable standards of construction and comply with regulatory requirements.” CRV is an essential element of the facility condition index (FCI) and other measures of facility status and need. CRV is used to describe current assets and can also be used to predict the costs of future expansion. This article is useful to facility planners, managers, and trustees to better grasp the concept better and apply it to their own planning and prioritization processes