Cost and Payback
Costs
It is becoming standard for high-tech equipment, controls, and communication controls to be put into buildings. To make certain that these systems realize their full capabilities, commissioning can ensure that buildings are properly designed, constructed, and prepared for occupancy, operations, and maintenance. The principle barrier of commissioning in to the construction market is the high cost, or the perception of high cost. In order to justify the benefits, we initiated an evaluation to review the latest literature and case studies to distill accurate benefit to cost information.
Payback
Among building projects studied there is a wide range in size and type. Cost savings are usually seen through energy and the prevention of future issues; with savings generally decreasing with time. Cost benefits commonly seen by building owners are in the form of direct energy benefits, non-energy benefits, and simple payback. Energy savings can reduce the payback period but should not be looked upon as the sole reason for hiring a CA. Most savings usually occur through non-energy benefits resulting from optimized systems performance, reduced warranty issues, operations and maintenance, and building management tools for assessing and training facility management. Simple cost benefit and payback ranges are summarized below.
| Service | New Construction | Existing Construction |
|---|---|---|
| Commissioning | $0.25/ft² to $2.30/ft² | $0.10/ft² to $0.35/ft² |
| Energy Benefits | $0.08/ft² to $0.68/ft² | $0.13/ft² to $0.27/ft² |
| Non-Energy Benefits | $0.15/ft² to $2.15/ft² | 4.9 years to 6.4 years |
| Simple Payback | $0.13/ft² to $0.19/ft² | 0.8 years to 3.3 years |
Collateral Cost Benefits Diagram
A cost benefit approach is embedded into all of our commissioning projects. We are continually taking the opportunity to improve the financial rewards for owners by investigating calculated savings through one-time and on-going impacts. Our experience tells us that project costs are usually negated by on-going cost per year cost benefits.
Capturing Value and Efficiency
For a successful commissioning project value and efficiency is essential and can often be seen across other budgets (e.g. project costs or improved tenant retention) or the wider categories (e.g. energy savings and capital loss mitigating future maintenance and operations issues). Delayed occupancy and the early detection of design and installation problems alone can provide significant economic justification for commissioning.
Many owners have begun to use commissioning as a resource to move towards more accurate funding models which can be supported by improved building historical performance information; an item typically included in our procedures. In addition to the obvious savings explained above, in Laboratories the reduced risk of contamination can lessen expensive potential litigation related costs than can result from even the most common accidents. We hope that you find this information useful and please contact us to see how we can help you with your future project.