|
The details of lighting upgrades are not explained easily. Are you familiar with energy efficient lighting modalities? Are you deciding between retrofit and replacement? In the long-run is it really cheaper replacing burned-out lighting with its original technology? Are you seeking incentives that make the transfer to energy efficient lighting worth the higher cost? Perhaps we can help you answer these and other questions with responses that may surprise and interest you. Determining the Total Cost to Own (TCO) Model To really delineate the costs versus savings opportunities in any lighting associated project - be it bulbs, a singular fixture, or lighting for an entire building or expanse - use the TCO model to compare your options and make an informed decision. The concept behind determining a true TCO utilizes various factors, among them: acquisition, operations management, space management, and end-user expenses. Once the TCO has been established you can more accurately calculate your savings and estimate the return on your investment (ROI).According to Josh Millman, managing partner of Facilities Planners & Architects, there is a four pronged paradigm that should be applied in order to decide value of a retrofit project versus replacement. Project delivery management - Investigate the expenses associated with preparing and installing the new system. This should include the cost of: time spent on researching a specific system, permit application, creation of required architectural renderings, procurement, repositioning, etc. Operations management - This reviews the cost of an overall operation per square foot, taking into consideration: energy usage, replacement the value of the system, and estimated fees associated with any essential precautionary maintenance and/or emergencies and standard repairs Capital asset management - This exercise combines the estimated costs of capital renewal with the replacement of the system. Significant performance indicators should include: Capital Renewal Index or Facility Condition Index for replacements Recapitalization rate for retrofits or upgrades Space management: When discussing building systems, use space management findings to determine the yearly cost, ensuring your computations takes the churn rate into consideration. Space management should also include the cost of the manpower necessary to relocate light fixtures as determined by the facility's churn rate. When making your decision regarding justifying the cost of retrofit or replacement, it's important to avoid pitfalls that can develop into costly mistakes. Your contractor's estimate does not have to be the final word on the cost of the project. Be knowledgeable enough to keep from falling for unnecessary complications cited on an estimate. They may be completely unwarranted and will ultimately drive-up the cost of the project. Worst of all they can discourage you from moving forward with a project that can result in huge savings in the long run. Below are four tips to help you avoid such mistakes: 1. Don't have tunnel vision: Refrain from focusing solely on the material cost of a retrofit. Example: Let's say you have a three-lamp T12 fluorescent light fixture, and you just exchange the bulbs and ballasts to make it a three lamp T8 fluorescent fixture. Simply put...you will be throwing away your money as well as an opportunity to delamp at some point in the future. Review various equipment and technologies. Perhaps you should consider changing the type or appearance of the fixture. A swap may appear to be the least expensive way to proceed but moving forward, it may prove to be the most costly due to its limitations regarding a future retrofit or fixture upgrade 2. Use due diligence when selecting a retrofit kit: You'd be surprised to learn how many times, even a seemingly well-informed individual selects an incorrect kit. A simple example would be a person who has purchased a parabolic fixture designed for three lamps attempting to install a two-lamp reflector retrofit kit in it. The lamps may be instrumental in garnering significant energy efficiency, but the quality of light is substantially decreased and those who depend on it may be less productive 3. Investigate your contractor's time estimate: A number of issues can erroneously impact your contractor's cost projection when estimating the length of time a job will take. Often, these mistakes are not easily identified. Be certain your contractor has knowledge about the location of your HVAC equipment and network cables BEFORE opening your ceiling. Knowing what's overhead in advance will limit or even prevent an issue that can potentially result in additional and/or unnecessary labor and spending. 4. Always be aware of code compliance: New installations must always comply with current codes, such as new sizing requirements and other preliminary work to support a fixture. Ensure that both you and your contractor are aware of these codes because if unanticipated, compliance can turn-out to be a costly endeavor There are always fiscal opportunities and risks associated with any major lighting installation. That's why we recommend conducting a comprehensive investigation of all associated areas prior to making your decision. However, while cost is an absolutely necessary consideration, when deciding between retrofit and replacement, remember to keep in mind the energy savings and efficiency you'll accrue going forward. Edward DuCoin, CEO ORPICAL Group Ed DuCoin is the CEO of ORPICAL Group, known for his success in growing a small company into a thriving organization that was listed as one of the 500 Fastest Growing Companies for three consecutive years by INC. Magazine. http://edwardducoin.com http://www.orpical.com
Related Articles -
Lightingnbsp Retrofit or Replacement, Lighting Upgrades, Retrofit vs Replacement, Lighting Upgrade Retrofit vs Replacement, To Retrofit or Replace,
| 
