Tips on making the best HVAC decisions
When it comes to the cost of doing business, heating, ventilation and air conditioning (HVAC) ranks high on the scale. It’s a specialized area, and one that’s in constant flux as innovations like LED lighting and the phase-out of R-22 refrigerant changes the landscape. For retailers, building relationships with trusted suppliers is a critical way to control expenses and make sure costly systems are being properly maintained.
How does one evaluate a prospective supplier? Ron Prager, COO of Brinco Mechanical Management Services, Inc., said the supplier’s references are still vital. The retailer has to “understand who these references are and actually take time to speak with them.”
Shirley Culman, Vice President of Facilities for Burlington Stores, said “the most important thing for me to understand about a supplier is how they plan to strategically manage a program.” It’s not enough to be reactive; decisions about whether to repair or replace equipment should be part of an overall plan. “A supplier needs to understand the organizational structure and objectives of the retailer and how they can best support the facilities manager,” she said.
When evaluating vendor performance, it can be difficult for the retailer to evaluate how well the HVAC units are being cared for. “One big-box retailer has their facility managers visit each site every year. Among other things, they also review the quality of HVAC maintenance,” Prager said.
When reviewing the cost of maintenance and repair, Prager cautions that comparisons used in benchmarking against other retailers must be weighted based on several variables such as use of EMS systems, set points, and equipment age and hours of operation, as these can have a major effect on R&M costs. “One key performance indicator for management of repair cost is cost avoidance,” he said.
“The difference between the initial quoted repair cost and the amount the retailer pays on the final invoice demonstrates due diligence,” Prager said. “In a relationship where the vendor is providing essential emergency service, it is imperative both parties understand the retailer’s expectations and the vendor’s ability to fully meet those expectations. We are partnering to provide a comfortable environment for shoppers and store associates, and to minimize system failures.”
When considering unit replacement, multiple expenses must be evaluated to estimate anticipated cost savings. Culman looks at energy costs from the preceding year (taking seasonal variations into account) and repair spend over a three- to five-year period, compared to the projected spend with new equipment.
When a retailer is considering a Net Zero Energy location, (where the site produces as much energy as it consumes), “we need to understand our own company’s energy objectives versus the cost of various energy saving options,” Culman said. “We need to be cautious about jumping onto new technology bandwagons.”
“This truly is a marriage,” she said, “so if you can develop a good professional rapport and chemistry with a vendor, it is very beneficial to your company, to your stores and I think to the vendor as well.”
Ron Prager
Shirley Culman
Top five considerations when buying or replacing HVAC equipment:
1. Lease term and planned use changes.
2. Building condition and current energy needs. (“The structure should be evaluated by a Licensed Professional Engineer,” said Prager.)
3. Condition of the equipment at a site in relation to the balance of your fleet, as well as store performance.
4. Future contingencies. Better access to equipment can lower future maintenance costs. Build in redundancy to prevent total system failure. (“Should the current system be replaced like-for-like or re-engineered to a different system?” Culman asked.)
5. Internal and external stakeholders: energy or sustainability group, design team, construction team (and of course the landlord.)
By: Sarah B. Hood
