HVAC
THINKING BEYOND CAPITAL COSTS
When selecting a boiler for a replacement or renovation project, whole life costing, is an important consideration. Where commercial boilers are concerned, life
costing should include anticipated energy, installation, maintenance and servicing costs. Neville Small, Sales Director at Potterton Commercial, tells us more.
According to the latest figures from the Carbon Trust, 20% of a business' annual energy costs are wasted through the use of energy inefficient equipment. Commercial buildings are amongst some of the poorest performing premises in terms of efficiency, accounting for approximately 26% of all greenhouse gas emissions from UK buildings.
The health of the construction industry is widely recognised as a key indicator of the state of the overall UK economy. Worryingly, the rate of building has slowed in recent months, underlining that it’s more important than ever for businesses to make the right choices. Ultimately, choosing the right energy product is crucial to ensuring projects stay within budget.
Here, facilities managers (FMs) need to look beyond the initial purchase and installation fee and consider how appliances will perform over time. This is where whole life costing comes in. By looking at the long-term operational cost of each individual asset within the build, FMs can be reassured that they are replacing a product with a solution that’s cost-effective in the truest sense.
When it comes to commercial boilers specifically, whole life costing should include anticipated energy, installation, maintenance and servicing costs.
Given that heating is vital to a commercial building operating effectively, reliability and efficiency is key. However, often components that are cheaper at the initial stages can
40 | TOMORROW’S FM
easily end up costing more in the long run, whether as a result of operational costs or because they need repairing or replacing more quickly.
“THE PROOF AND
VALUE OF MAKING WHOLE LIFETIME
CALCULATIONS IS IN THE BUILDING’S
OPERATIONAL COSTS.”
Careful selection of high quality, long-lasting, and efficient heating equipment will help bring these costs down. Fortunately, it is now easier to identify the most energy efficient products, with space heaters and combi space heaters of up to 70kW having an energy label (ranging from A++ to G) as a result of the Energy Labelling Directive (ErP), introduced in September 2015. Additional performance and efficiency parameters can be found in a ‘technical fiche’ and within product data/technical parameter sheets on manufacturers’ websites, helping FMs to differentiate products in the same energy band.
Taking a whole life costing approach means being clear on the what, when and how of a product. What work will need doing to that particular component throughout its life? When should the work be done? And, how much will it cost to do the work, taking into account access and downtime?
The answers to these questions don’t have to be complex. Straightforward payback calculations can help demonstrate the benefits of investing in higher quality products from the beginning to reduce energy consumption in the long run. Maintenance costings should take into account both predictive and reactive work, as well as disposal costs and any downtime.
FMs should also consider what level of Building Information Modelling (BIM) files are available with their chosen product. Since April last year, BIM Level 2 has been mandatory for centrally funded public sector projects, meaning that FMs should expect this standard to filter through to the private sector. By specifying a product with Level 2 files now, FMs can effectively future-proof their product choice as management systems evolve.
The proof and value of making whole lifetime calculations is in the building’s operational costs. An appliance made of lasting, quality components which may cost more to purchase, may cost less to run and therefore have a shorter payback period, resulting in better savings.
Lifecycle costing doesn’t just provide system and performance benefits for a facilities manager; it can actually provide valuable cash flow forecast insight for energy managers and financial directors. The key to achieving a truly cost-effective solution is to look beyond attractively priced products and think about long- term costs from the word go.
www.pottertoncommercial.co.uk twitter.com/TomorrowsFM
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