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Intelligent Building - Ideas for your next intelligent building

Intelligent buildings are the future but what does “intelligent” actually mean? How do you guarantee savings from smart building technologies? Are all building technologies created equal?

Intelligent buildings are the future – Find out if they should be in yours!

By: Zach Denning

Technology has evolved dramatically in the last fifteen years. Cell phones have evolved into “smart phones” and laptops have been replaced with tablets. The last industry anyone would consider being linked to the tech bubble would be HVAC – Laggard, maybe. Left out, certainly not!

HVAC technology investments in commercial buildings account for nearly 2.00/sq. ft. and comprise of microprocessors, IP enabled gateways and thousands-of-lines of coding. Intelligent buildings have the ability to network HVAC equipment with the intent to maximize energy savings and reduce maintenance costs.

With the building technology market growing larger, some providers are making astronomical claims that may leave your building with a single digit IQ.

Here are some ideas to consider before investing in your intelligent building project:

1. Cost-saving advantages touted by technology companies typically require 3rd party setup

Building automation systems (BMS) manufacturers argue energy and maintenance cost-savings as a benefit when considering upgrades. Although most systems are capable of substantial reductions the real savings are in the programming or coding – Not the hardware itself!

Even configurable systems still require a competent 3rd party programmer or technician for proper setup. The “intelligence” in intelligent buildings typically revolves around the actual coding or programming of the hardware.

Imagine Apple releasing the first iPhone without a single App and touting that it will reduce your business overhead by 30%! Although a great platform, even the iPhone would still require talented developers to scratch out code in order to make these lofty claims.

When investing in a new intelligent building platform ensure that the 3rd party integrator can guarantee claims made to you by the manufacturer.

2. Maintenance cost-savings require your service provider to understand technology

At least 30-35% of the total cost-savings associated with intelligent buildings are in maintenance and operation. Commercial HVAC operating costs are traditionally 60-70% energy and 30-40% maintenance.

Although some HVAC audits omit maintenance savings as part of their returns they have a profound impact on returns. Relying soley on energy savings as justification for an intelligent building can almost double simple payback – Inclusion of maintenance savings can drive payback down to less than 2-years!

HVAC service providers capable of interacting with building technologies can reduce total operating costs as much as 21-24% annually – With tenant complaints dropping almost 50%! Make sure your maintenance provider knows how to work with your new system to ensure you hit your savings goals.

3. Ongoing service is necessary for ongoing savings

Intelligent building technologies are often incorporated into sustainable investment strategies – Although they lack sustainability as standalone investments! Systems like building automation and analytics must be constantly maintained and tuned by a certified 3rd party to ensure ongoing savings and efficiency.

Investments like building automation should include costs associated with life-cycle maintenance in order to get accurate return data. Unlike solar or other energy-based investments, the “one-and-done” mentality can have massive impacts on return calculations.

The average HVAC system degrades at a rate of 12-15% annually which must be accounted for with ongoing maintenance and monitoring. Inability to quickly resolve lingering issues leads to high-cost failures and tenant impact.

Ensure your service provider includes specific details about maintaining your intelligent building investment – It’s worth it!

Understanding and implementing the above ideas on your next intelligent building investment will help safeguard expectations and calculated savings. If you have any questions or ideas on upcoming projects feel free to shoot us a call and one of our engineers will be happy to help!

My name is Zach Denning and I’m the CEO and owner of EnerDapt, Inc. We’re an HVAC engineering firm that utilizes cloud-based technology to bridge the technical and financial gaps commonly found in HVAC management. Our OCMS EnerVise platform keeps customers knowledgeable about their building including HVAC life-cycle costs, forecasted maintenance & upgrades, and equipment replacements. You can reach me at zdenning@enerdapt.com or visit our website at www.enerdapt.com

The HVAC service industry hasn’t evolved in the last 25-years although equipment has seen massive changes.

HVAC service is trending towards disruptive changes and here’s why!

By: Zach Denning

HVAC equipment has changed drastically in the last 25-years. Technicians are being stretched outside their comfort zones with job requirements similar to that of IT professionals. Owners and managers are finding it harder and harder to differentiate between providers leaving the bottom line as a primary motivator for selection criteria.

Even the way equipment is being installed and services has altered with the advent of technology as a driver of efficiency. Building automation (BMS) and “smart units” are enabling service providers to try new approaches to resolving typical temperature issues.

Here are some of the major trends in the industry and what to expect:

The HVAC industry has become a commoditized market

Despite HVAC becoming more complex and increasingly efficient, owners and managers are having a harder time differentiating providers. Terms like “value engineering” are now represented by the lowest bidder dropping key design elements to win projects – Irregardless of how those changes impact Total Cost of Ownership (TCO).

The influx of new HVAC design and installation firms has also been a key driver. Every year over 11,000 new HVAC contractors enter the market with an average closing rate of 15% – Further adding to market confusion for end users and diluting value.

HVAC Preventative Maintenance (PM) contracts haven’t evolved in 30-years

Building automation has undergone massive overhauls in the last 25-years with the adoption of processors equivalent to mobile technology. Almost every piece of equipment in commercial buildings has some form of monitoring or control essential to discovering and ratifying issues.

The standard PM contracts doesn’t address technology as a value driver. In fact, it hasn’t changed since equipment ran on air-driven controllers – Controllers that aren’t electronic!

75% of all tenant complaints are HVAC related
60% of those issues are software or building automation related

This means that 45-50% of all issues reported by your tenants can be identified and repaired remotely without ever seeing a technician. “Virtual service” or monitoring-based contracts are beneficial for both parties as they lower customer costs, contractor overhead, and repair times.

Skilled technicians have become a scarcity

The Millenials and generational technology gaps haven’t been kind to the HVAC industry. Established technicians are finding it hard to transition into psuedo-programmer roles necessary to properly maintain equipment and supporting technology. Building owners and tenants are suffering the cost-impact of repeat HVAC issues from inaccurately conceived solutions as technicians fail to find the root of software-related problems.

Even worse, Millenials are choosing white-collar technology jobs over blue-collar labor like HVAC and construction. The labor pool of HVAC technicians is not only worsening, it’s also shrinking!

What changes can we expect to see?

Technology has been the primary driver in the evolution of HVAC standards. Yet, most service providers are choosing to combat labor shortages and skill deficiencies with price wars instead of innovation.

Adopting new technologies to supplant physical presence for service opens up new opportunities for maintenance contracts and new hire criteria. Maintenance contracts based around remote monitoring and repair not only reduce overhead, they allow providers to choose from a new labor pool – One predisposed to technology that can be taught HVAC fundamentals!

Be forewarned, the HVAC installation and service landscape is headed for major disruptive changes beneficial to both building owners and contractors!

Posts

Three things to know before investing in an “intelligent building”