The Hill Building in Erdenheim, PA invested $900 in an annual maintenance agreement with Chadwick Services. It saved them 20% per year, a 12X return on investment.
Benchmarking and quantifying the cost of operations
The Hill building was constructed in the early 1970s. This 18,000 square foot, three-story office building with 15 tenants was in dire need of improvements to its aging mechanical systems and also needed cosmetic improvements to its interiors.
During 2011 and 2012, the mechanical costs of operation each year were $55,720. In January of 2013, new ownership took control of the building and contract services were changed to Chadwick Service.
The Chadwick Services Plan:
- Benchmark the building.Â Establish an Energy Star Rating and quantify the dollars being wasted through poor facility operations. The building was rated at a 29 with potential savings of $16,300 per year.
- Quantify the total mechanical cost of operations. CollectÂ energy bills, compile total mechanical repair costs, and identify and analyze the costs of the current service contracts. Total annual spending was $55,720.
- Present a mechanical performance report and strategy. In which we estimated that The Hill building could reduce the total cost of operations by 15 â€“ 20% per year.
- Identify a long-term action planÂ to upgrade existing mechanical equipment.
Energy & Maintenance Cost Savings
- A $900 investment in a preventative maintenance contract in 2013 with Chadwick Services has delivered an $11,000 yearly savings â€“ a twelvefold return on investment.
- Improvements to facility operations in 2013 delivered an annual cost reduction of $11,098 going forward –Â a 20% savings.
- In 2015, savings from prior years were invested in replacement of two aged heat pump units. This resulted in an additional 7% savings for 2015.
Total savings: $41,625.