The Facility Condition Index (FCI) is a critical measure within the facility management industry that evaluates the physical condition of assets by comparing the costs of deferred maintenance (liabilities) against the Asset Replacement Value (ARV). The U.S. Army Corps of Engineers first implemented FCI in the 1980s. Today, the FCI enables health care, education, and government organisations to make decisions on maintenance and investments in critical infrastructure while the building asset remains operational. Despite its wide usage, the FCI has been criticised for accuracy and relevance, especially in representing the actual asset value and giving importance to fundamental building elements. This paper discusses the current methodologies applied in the computation of FCI, analyses its applications across various sectors, and examines the ongoing use of the Asset Replacement Value (ARV) and how it is having a detrimental and significant impact on the accuracy of the Facility Condition Index (FCI). This study discusses gaps in the literature and consolidates current practising facility managers' and asset inspectors’ experiences, providing insights and offering practical and measurable improvement methodologies to overcome this fundamental flaw. The FCI calculation remains a cornerstone measure for quantifying maintenance liability risks. It is Maintenance Management a highly valued indicator investment banking institutions use when acquiring or disposing of high-valued building assets