Financial Series: Cost of Ownership

Cost of Ownership Evaluations With Campbell Mechanical Services

Campbell Mechanical Services can help you make the best decisions about your HVAC system regarding maintenance, repair, upgrades, and replacement. A cost of ownership evaluation can help.

According to the U.S. Department of Energy and the Building Owners and Managers Association (BOMA) energy savings of 5 to 30% can be realized through improved operation and maintenance of building systems. Our Energy Savings Assessment is a key step in optimizing the performance of the energy-consuming systems in your building and ensuring that all aspects of energy waste in your building are addressed.

Tight capital budgets? Most of our customers are in that same situation. But that’s not a reason to wait. Our unique approach focuses first on low and no cost changes to how your building operates. This allows you to reduce your cost of operations with little or no capital investment. We will identify immediate operating cost savings that will more than pay for the cost of our services – generating positive cash flow for use in other parts of your business.

Benefits of an Energy Savings Assessment

Reduce energy waste
Following the lead from the BOMA Energy Efficiency Program (BEEP®) to identify low-cost and no-cost savings tactics, we address many of the most common energy-wasting culprits.

Increase Comfort
Your people are an important asset. We’ll help you minimize complaints and improve comfort by pinpointing problem areas and resolving issues fast.

Self funding
Use the savings generated by simple low and no cost changes to supplement your capital budget. Take the guesswork out of your planning with documented justification for improvements including repairs, retrofits, and replacement of your HVAC and lighting systems.

Energy costs typically account for 30% of the total cost of operating a building.

85% of buildings are over-ventilated wasting billions of dollars each year in unnecessary heating and cooling costs.

A 15% reduction in energy consumption can lower operating costs by $12,000 per year for every 50,000 square feet of space.

Consider Your Investment

Consider your investment and cost of ownership. ASHRAE (the American Society for Heating, Refrigeration, and Air Conditioning Engineers) created a chart that calculates the average life expectancy of any piece of HVAC equipment. This is a critical multiplier in the equation that allows you to determine annualized cost. This standard equation allows the consumer and the technician to assess the value of repairs, resale value and general operating costs prediction based on standardized industry information.

Using the following information from ASHRAE you can determine the maintenance cost of your current equipment. Via these 8 data points you can determine your cost. Learn more about the Maintenance Cost Data Query here.

  • Region
  • State
  • Function
  • Size (sf)
  • Age (years)
  • Height (stories)
  • BOMA Class
  • Location

When you calculate the annualized costs, then you can budget for your HVAC system upgrades or replacement. Like any mechanical piece of equipment, the cost of repairs tends to increase as it ages. Using this equation helps to normalize the investment. It is up to your accounting practices to determine how you will use this information. However, you can see that it will be powerful when determining replacement time and budgeting.

Budgeting factors include:

  • Installed Cost
  • Maintenance Cost (30-year)
  • Energy Cost (30-year)
  • Replacement Allocation

Using the annual cost, you can start to determine the value of replacing equipment based on age or new found efficiencies. All toward creating the optimal working environment for your employees allowing increased productivity and a healthy building.

Additional Considerations

Remember, the cost of ownership includes providing a consistent – and healthy – environment for employees and building occupants. Indoor air quality (IAQ) is an important consideration today.

We’ll help keep you informed about the latest HVAC system technologies available today, too. Because even in the past few years much has changed from equipment to controls and the capabilities to monitor and regulate HVAC and energy related systems. For example, we can help with recommendations for quieter mechanical systems, variable speed drives, (old systems may have banging noises), variable speed condensers, and better comfort control.

Find opportunities to reduce your energy costs – starting with next month’s bill.

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