Bratislava, 8 June 2015
Reducing the cost of operating facilities, buildings or office complexes is a key area for most owners and tenants today. Facility management today has a more comprehensive scope and is not only understood as a set of activities resulting from legislation, from manufacturers’ recommendations or from various operating regulations and manuals, or in the provision of basic services related to building management. Nowadays, as the pressure on the cost of management and the savings associated with it increases, it is necessary to look at the building as a whole. That is to say, not only the individual facilities and the building itself, but also the energy that the building requires for its operation. Energy and utilities make up the largest and most significant part of a building’s operating costs, and therefore the greatest potential for cost reduction. Cofely, which has an advantage over other Facility Management companies in terms of its diversified portfolio, sees the link between Energy Management and Facility Management as key in providing services in this area.
Where to look for savings when all options have been exhausted?
How do companies most often look for savings in building management costs? By repeating tenders for soft services. The reason is simple – the prices of these services are easy to compare. The downward pressure on soft service prices is currently very high and in a few years there will be no room for reduction in order to maintain a minimum quality of service. Any reduction of a few percent in energy costs is equivalent to a reduction of tens of percent in the cost of technical building management.
“From the perspective of maintaining the level of services provided, and thus ensuring the comfort of tenants and users of the facilities, we believe that constantly reducing the prices of soft services is not the way we want to go in the long term. That is why we are looking for savings in other areas. Given our experience in providing services in the field of heat generation and distribution and energy management, we have decided to focus on the area of energy efficiency. And experience has shown that this was a good decision. Whether in terms of the savings achieved or the satisfaction of owners and tenants with the quality of the services provided,” says Peter Brestovanský, Director of Complex Property Management Division, Cofely.
How does it work?
There are many things to think about when setting up an efficient building energy operation – the correct gas or electricity point of use classification and categorisation, the setting of electricity distribution parameters, and the associated size of the regular distribution charges. Good power factor compensation is also important to avoid unnecessary charges from distribution companies, as well as the appropriate timing of tendering for power and gas purchases. In this case, it is ideal for building owners to approach someone who already has a number of similar buildings under management and, in addition to experience, can offer assistance in tendering for better energy prices. Cofely, thanks to its stable position on the market and its long experience in the energy sector, helps its clients significantly in this area.
“We offer our clients the possibility to broker the purchase of electricity. On behalf of property owners, we tender more favourable prices and sign contracts for the purchase of the power part of the electricity. For some clients, we have set up an incentive-based savings reallocation model that motivates us to look for room for additional savings,” says Peter Brestovanský. Other ways to reduce operating costs
In addition to achieving energy savings through better contract administration and price negotiations, cost-cutting measures can be sought in other areas. For example, it is interesting to look at savings in the area of utilities – heat, cooling, fresh air, water or domestic hot water. For example, domestic hot water (DHW) is prepared centrally in a large number of buildings. This is despite the fact that its real consumption is at the level of a few hundred litres per day. DHW is not used at night, but also mostly during the day, yet it is constantly stored and heated centrally.
Another area is the use of technology. Here, for example, changing the settings of the operating parameters, adjusting the attenuation modes, taking into account the maintenance of comfort and hygiene minima within the building, can be of particular help.
“At Cofely, when setting up energy-efficient measures, we first focus on technological adjustments and measures that do not require investment. For example, we try to recover heat, shutting down those branches that we do not need for heating or cooling. After a more detailed acquaintance with the building, we can also specify to the owner the technological measures that require investment. Part of such a project is, of course, the quantification of the return on investment and the savings that can be achieved in this way,” explains Peter Brestovanský. Cofely used a similar model during its cooperation with VUB. At the beginning of the cooperation in 2010, Cofely proposed measures that did not require investment. Gradually, she also proposed measures where investment was necessary. Now, after five years of cooperation, thanks to the implementation of the proposed measures and investments, Cofely is helping VÚB to find savings in the tens of thousands of euros per year. Energy management brings savings
Cofely prepares a proposal for energy measures associated with the investment and quantification of the payback period and savings for its clients in the building management sector, along with a budget proposal. Cofely prepares such a proposal for its clients free of charge, as it is motivated by financial participation in the savings achieved.
“It is easier for us to prepare proposals for clients to whom we provide our services and we know their consumption, the state of technological equipment and operating modes. For new clients, we can prepare an energy audit, assess the operating mode of the building and propose measures. However, if we do not operate the building and cannot influence the current manager’s actions, we cannot guarantee the proposed savings,” says Peter Brestovanský. The aforementioned Cofely services are currently used by EcoPoint, VUB and Aupark, for example.
A comprehensive view of building management
“In conclusion, I would like to point out once again that building management needs to be looked at from a holistic perspective. Do not just compare the parts of the costs that have been taken out, but look for the reserves in the most costly items and address them. I would also like to encourage owners not to be afraid to invite external experts to assess the current situation, even though they may employ their own energy engineer. Indeed, given the size and diversity of their portfolio, years of experience and dozens of reference buildings, these are the very people who can bring a fresh perspective on cost savings. We are delighted that client interest in our services in this area is growing year on year. I think this shows that clients are realising the importance of suggestions and measures that make their operations more efficient and bring significant savings in the long term,” concludes Peter Brestovanský.