Facility Restoration

How is repair cost percentage calculated?

The repair cost percentage iscalculated by comparing the estimated repair cost to the estimated replacementcost, as outlined in the document. ​ Here is how the calculation is performed:

  1. Numerator:some text
       
    • The estimated repair cost is used as the      numerator in the calculation. ​
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    • The repair cost estimate includes expenses      related to repairing disaster-related damage only, along with costs for      compliance with applicable codes and standards that apply to the repair      of the damaged elements. ​
  2.  
  3. Denominator:some text
       
    • The estimated replacement cost is used as the      denominator in the calculation. ​
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    • The replacement cost estimate is based on      replacing the facility according to its pre-disaster design (size and      capacity) and function in compliance with relevant codes or standards. ​
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  5. Calculation:some text
       
    • The repair cost estimate is divided by the      replacement cost estimate. ​
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    • This division results in a fraction that      expresses the repair cost as a percentage of the replacement cost. ​
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    • FEMA refers to this percentage calculation as the      "50% Rule." ​

By comparing these two cost estimates,FEMA determines whether the repair cost exceeds 50% of the replacement cost,which is a key factor in deciding whether a facility is eligible for repair orreplacement funding. ​

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Facility Restoration

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