Facility Management – Cost Saving Factors

Facilities Management main objective is to reduce energy and maintenance costs and thereby driving bottom line cost savings.

Facilities Management minimize the cost by concentrating on following factors:

i) Project Cost Saving Strategies

Contractor Selection: The most cost efficient time to select a contractor is when the project is still in its early design stage. It is more economical to make changes in preliminary drawings than it is to modify completed construction documents. The process of selecting the right contractor involves, developing a short list of candidates, reviewing qualifications, checking references, conducting interviews and making a final selection based on a competitive fee and at last personally interacting with the contractor. A good team can reduce the exceeding budget cost projections.

Budget: It is important to develop project budgets as early as possible in order to ensure that cost estimates accurately reflect the current and projected market. Budgets should be updated on a regular basis, in order to identify and isolate any areas where costs could increase.

The larger and more extensive the project or budget is, the more proactive the facility management team needs to be. This particularly applies to projects with a longer schedule and budgets extending into the next calendar year.

Value Engineering: Early in the budget planning process, the facility manager’s general contractor should proactively offer value engineering suggestions regarding virtually all components of a budget – construction materials, techniques, budget constraints, and schedules. These are analyzed in order to find cost-effective alternatives that bring value to the overall process in order to assist in attaining budget goals and saving on project costs while still maintaining the budget intent.

ii) Waste Reductions

a. Energy Conservation

  • Negotiating low transportation rates with the local gas companies
  • Administering energy supply procurements and
  • Validating the invoices from local gas distribution companies and gas suppliers.

Quick Tips for Conserving Energy

I) Using Filters to Conserve Energy: Energy consumed can be reduced by using filters. Filters plays an important role in the energy conservation. The energy used is based on the resistance of the air passing through the filter. The lower the filter resistance, the lower the energy consumption will be. Even though one speaks of filters, it is really the filter media that has the biggest effect on minimizing energy consumption, protecting HVAC equipment and providing clean air.

II) Turn off Computers: Turn off computers every night. Turn off monitor after 10 minutes of inactivity, and have your computer enter standby after 20 minutes. Enable hibernation after 1 hour of inactivity for additional savings. Hibernate mode uses almost as little energy as turning a computer off.

III) Lights: Turn off lights when not in use; utilize natural lighting whenever possible.Use task lighting instead of brightly lighting the entire room, focus the light where you need it. Replace standard night lights with LED or elector-luminescent night lights. They are very efficient and cool to the touch.

IV) Appliances: Turn off all appliances and office equipment when not in use. This includes printers, copiers, chargers, scanners, fax machines, and coffee makers. Computers, printers, copiers, and televisions are some of the worst offenders. Plug electronic devices into central power strips and shut them off at the end of the day, or simply keep them off and unplugged when not in use. Don’t overload refrigerators; they operate more efficiently when air circulation is not restricted.

b. Water Conservation: Periodically drain the water heater until water runs clear. This allows sediment and mineral deposits to escape and increase efficiency. Place faucet levers in the “cold” position when using small amounts of water, as the “hot” position uses energy to heat the water even though it may never reach the faucet. Fix leaky faucets. One drip can waste up to 250 gallons of water per month, which translates to 3,000 gallons of wasted water annually. Set your water heater to 120 degrees. If your water heater is at least seven years old, consider replacing it with a new energy efficient or tank less model. Turn the water heater down to the lowest setting when away from home for more than three days. Replace your shower head with one that uses less water.

c. Maintenance and HVAC

Filters: Clean permanent filters every two months.

Leaks: Check HVAC (heating, ventilation and air conditioning) system and other equipment yearly for coolant and air leaks, clogs and obstructions of air intake and vents. Don’t cool or heat more than necessary, especially in unoccupied areas.

Condensers: Clean air conditioner and refrigerator condensers at least every two years.

Sunlight: Cover west and south facing windows during the summer, and let sunlight in during the winter.

Fugitive Heat. Position heat-producing appliances (such as TVs and lamps) away from room thermostats. It is found that one watt of air conditioning is required to reduce the heat of one watt of light. Thus, energy-saving lamps reduce air conditioning costs watt-for-watt.

iii) Facility Management Outsourcing

When the company is setting up an outsourcing relationship, company will get indirect benefits. These benefits include exemption of employee benefits such as health insurance, compensations, etc. Outsourcing shows up as overhead reductions and increases productivity, making the company more efficient. Companies get better services at lower cost and also a qualified and skilled outside supplier by outsourcing facilities management. Savings from outsourcing will convert to funding R&D. This strengthens the product pipeline, pleases inverters, and ultimately influences share price.

Categories of Facility Outsourcing Tasks

Business site services: Office services, security, document management, roads and grounds maintenance, environmental health and safety, cleaning, catering and vending, transportation, call center, and help desk, etc.

Business-critical and technical services: Lighting, fire and life safety, security and access control water treatment, HVAC maintenance and operation, building automation system operation, critical environments and data center support, supply-side energy, and general maintenance (mechanical, electrical, plumbing, carpentry).

Workplace infrastructure services: Move management, project management, computer-aided design, construction, retrofitting, and performance contracting.


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