If you saw a facility similar to yours that was spending a hundred thousand dollars less a year to operate, would you want know how ?

Five Easy Points to help Owners understand how ASHRAE helps set the standard for purchasing services and support for your HVAC Systems.

The promise of a LOW PRICE in most cases does not take into account the magnitude of performance issues and premature failures that can occur by not selecting your PM Services with the end in mind. In fact, this practice often leads to massive cost overruns from a myriad of circumstances that transpire when equipment is not serviced according to the recommendations of the manufacturer who designed it for use in your facility.

ASHRAE releases the user from this circumstance by pulling back the curtain on true owning and operating expenses, while helping the informed buyer make the correct decision for efficiency, energy savings and financial control.

Point 1: WHO IS ASHRAE

ASHRAE (American Society of Heating, Refrigeration and Air Conditioning Engineers) was founded in 1894 to serve as a source of technical standards and guidelines for the HVAC industry and building construction in North America.

Since that time, it has grown into an international society that offers educational information, courses, seminars, career guidance, and publications. The organization also promotes a code of ethics for HVAC professionals and provides for liaison with the general public. One of the most important functions of the organization is to promote research and development in efficient, environmentally friendly technologies.

It is a good reference to also note that all constructed buildings in Canada and the US are designed, assembled, commissioned and outfitted in accordance with the guidelines of ASHRAE 90.1, referenced in most Municipal building codes across North America.

Point 2: ASHRAE Technical Committees. ( TC's)

ASHRAE TCs consist of people who have a recognized proficiency in a specific field of interest. These individuals contribute to the development of analysis, codes and standards specific to a particular area of attention deemed appropriate by ASHRAE.

The TC specific to helping analytical data in Owning and Operating Costs is ASHRAE TC 7.8 ( Technical Committee 7.8 )

Point 3: ASHRAE TC 7.8 and my Chilled Water System

Technical Committee 7.8 is concerned with owning and operating costs, principally the understanding of comparative owning and operating costs and economic analysis techniques, relating to HVAC&R systems.

ASHRAE TC 7.8 has been bench-marking owning and operating costs associated with HVAC systems and equipment for several decades.

By analyzing your costs in comparison to the ASHRAE benchmarks, it is possible to see where your facility is performing against similar ones to yours, and how your industry facility costs compare against what your business is spending.

TC 7.8 is responsible for the following research project:

1590-RP, IMPLEMENTATION OF TOTAL COST OF OWNERSHIP (TCO) PRINCIPLES INTO HIGHER EDUCATION AS AN INTEGRATED DECISION MAKING TOOL

The research effort will focuses on the “Implementation of Total Cost of Ownership standards into the HVAC industry. This data and information is useful as a guideline for service providers and owners to compare their own methods against the findings of AHRAE benchmarks in owning and operating costs.

Point 4: How ASHRAE TC 7.8 can help

By referencing the available data within the information collected by ASHRAE TC 7.8 we can see the proper spectrum of the cost of ownership in the installation and operation of your HVAC equipment.

As depicted in this ASHRAE PIE CHART, there are 8 individual cost centers that apply when analyzing the cost of ownership as it applies to all HVAC and environmental equipment.

From Energy to Lost Productivity, either ALL or SOME of these cost centers will apply to your business, incumbent on how your facility is set up and run.

By analyzing these cost centers against your own business, it is easy to compare your own financial profile against the national and international benchmarks for similar facilities and equipment portfolios.

From this data it is easy to see your ACTUAL costs on a fiscal basis and how selecting your PM services correctly save hundreds of thousands of dollars over the lifecycle of your HVAC systems.

Ultimately, the answers found in this type of thinking enable quick and accurate answers to the following questions.

Point 5:

How using ASHRAE principals to purchase service can benefit your business financially.

• When your Contractor utilizes these principals in the development of PM and Service programs for Chilled Water and Facility HVAC systems, it is possible to take advantage of industry standards for efficiency and asset management.
• This enables accurate budget assessments while avoiding unplanned accruals and catastrophic failures.
• These tools enable clients to select service contractors who provide a balanced and beneficial service program that saves energy and prevents unnecessary breakdowns while extending the life of your equipment.
• The energy savings and lowered repair frequencies can then free up funds for re-direction into other aspects of your business that make you money and streamline performance of your systems.

Conclusion: ASHRAE provides tools and insights that can be used to provide a proper prospectus on your Owning and Operating Costs, ultimately helping you select the right PM and Service based on Fiscal Costs, and not a LOW PRICE.