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Tag Archive for: Capital Projects

Capital Projects – List to Save Money

August 28, 2024/in Educational

For many condos, utility bills can easily be hundreds of thousands of dollars a year.  So, trimming consumption by even a few percent can save real money.  But how do you go about doing it?

As a retired Engineer with a lifelong interest in using energy efficiently, one of the first things I did when I found myself on my condo board was to analyse our utility bills to understand where the money (over 40% of our operating budget) was going.  

The next thing was to research the opportunities for reducing our consumption.  I found a couple of easy things and some hard things.  Below is a summary of my findings. 

I compared water bills from two current years to the first two years of water consumption after our building was fully occupied, data the municipality provided.  This highlighted that after a decade, our consumption had increased by 30%, equivalent to $25,000/year.  A single-running toilet can run 750 litres a day down the drain!

We installed low-cost, remotely monitored meters (from Alert Labs) on our main and cooling tower water meters.  Besides giving us detailed logs of our water use, the system software also estimates water losses due to leaks. 

Then, we added a plumbing inspection to the annual fire inspection when staff enter every unit.  The leak volume dropped by 80% even before the first inspection, as many owners addressed leaking toilets before the corporation made the repairs and billed them.

The next obvious target was lighting, as many areas in a condo are lit 24/7.  I calculated that converting our 24/7 lights to LED bulbs could be worth $15,000/year.  This can be as simple as changing out bulbs or as complicated (read expensive) as reworking or replacing fixtures.  

There are companies that will do LED upgrades and finance them such that your loan payments match your energy savings, i.e., they cost the corporation nothing.  While this may sound attractive, the downside is that you pay loan interest for some time before you get the benefit of reduced consumption.  With a 16-month break-even point, we opted to work the upgrade cost into our budget.

Less obvious is the electricity consumed by our building’s many pumps and fans.  These are often large electricity consumers, but while there are often ways to reduce the consumption, they are usually capital-intensive.  Adding a VFD (Variable Frequency Drive) to control an existing motor can reduce energy consumption by as much as 30%, and can offer even greater savings as they may allow the pump or fan to run slower while still meeting your building’s requirements.

We’ve done this twice now, but only when having to upgrade equipment for other reasons.  It wasn’t practical to replace our booster pumps with a new and expensive solution just for the energy savings, but when the original equipment got to end-of-life, we made sure we selected energy-efficient equipment.  Upgrades like this can often be paid for from the reserve fund because the “improvement” aspect of the replacement is in line with current building practices.

Water softeners use a lot of water that gets flushed down the drain every time they regenerate.  Modern softeners don’t use less water than old ones, but we have considered changing our systems to only soften hot water (roughly 1/3 of the total water used).  This could save over $6,000/year in water and salt costs, so when our existing softeners reach the end of life, we will look closely at replacing them with a much smaller system that only softens our hot water.

The makeup air units that blow fresh air into our building use a lot of electricity and gas.  An energy audit highlighted that air ducts generally leak quite a bit.  It’s reasonable to assume that as much as 30% of the air blown into them leaks out before it reaches the end of the ductwork.  We also found that the airflow into our hallways is as much as two or three times higher than necessary.  Sealing the ductwork, updating the motor controls, and slowing down the fans could save us $40,000/year and cost three times that to implement.  This is a project we are considering, and one where it makes sense to us to consider financing it because of the high capital cost.

The rest of our gas is used in our boilers for building heating and domestic hot water.  Like our booster pumps, it will be important to make good choices when they have to be replaced, but the potential savings don’t warrant replacing boilers with years of life left in them.

What opportunities are there in your building?  There are companies that will do energy audits, usually at no cost, to highlight potential savings and what would be required to realize them.  These audits can be invaluable for identifying savings opportunities to consider in your short and long-term planning.  

John Hayes, Business Analyst (Retired), Mergatroyd Systems INC. Explore our Previous Blogs.

https://cci-grc.ca/wp-content/uploads/2023/09/CCI-Full-Logo-Grand-River-31ae3da81a2928943167b28ecdb52b1f-300x103.jpg 0 0 Ariel P https://cci-grc.ca/wp-content/uploads/2023/09/CCI-Full-Logo-Grand-River-31ae3da81a2928943167b28ecdb52b1f-300x103.jpg Ariel P2024-08-28 15:20:542024-08-28 15:31:03Capital Projects – List to Save Money

Preparation for Capital Projects

March 21, 2024/in Educational

When a condominium corporation is moving towards a capital repair project it can become a daunting
process at times. Below are some best practices when undertaking a large project such as paving,
building envelope restoration, and/or infrastructure replacement. While it is likely your reserve fund
study or some other indicator (hopefully not failure) such as a condition survey that has identified a
capital item that is need of repair or replacement, the challenge is just beginning. Many would agree
that it is the primary steps of a project that can really set the tone for success. Please consider the
following:

  • Determine the scope of a project. Make use of the Reserve Fund Study, any condition
    assessments, or repair recommendations that may have been provided, or seek the advice of
    professionals related to the overall project scope.
  • For simpler or more straightforward projects, a professional/expert may not be required for the
    duration of the project and in those cases a corporation should be prepared with the assistance
    of their manager to identify the scope, obtain competitive estimates based on the scope, and
    select and manage the work directly with the approved contractor.
  • For larger or more complex projects, look to engage a professional/expert to workReserve Fund Consulting with the
    corporation throughout the project process from scope of work to tendering/estimating,
    inspections, etc. In today’s competitive world these professionals will greatly assist a
    corporation in securing competitive viable estimates, reduce liability, and provide a comfort
    level for the corporation and contractors which can lead to better value and overall results.
  • Timing of larger projects should always be reviewed. Keep in mind you may have other annual
    maintenance items that could be completed while undertaking a large project that will result in
    savings for the corporation from an operating standpoint. A simple example is to have the
    roofers scope include cleaning the eaves when roof replacement is being done. Consider
    repairing adjacent items, such as curbs, sidewalks, or buried infrastructure when doing asphalt
    replacement.
  • All have seen large variances with pricing. Ensure requests for quotations are clear and simple.
    Ensure the key points are captured such as what (service, supply) and when (frequency,
    urgency). Contracts and purchase orders need to clearly reflect the approved scope, pricing, and
    timing expectations.
  • Quoting/tendering and contract preparation can be challenging in today’s environment for
    varying reasons. Volatile marketplaces, surplus of work, and increasing inflation have made this
    process far more challenging as of late. Much of the time contractors, when given the
    opportunity for future business, will provide firm pricing and or annualized increases for multi-
    year commitments when possible.
  • Communication with residents is always vital for a successful project. Try to be informative but
    general in nature with respect to the scope, timing, specific needs such a relocation of vehiclesetc., and what to expect for residents such as noise, vibration, and traffic. Be prepared to
    provide updates as projects progress. This will ensure residents have what they need information wise. Clearly identify who concerns should be brought to in the event a question or
    issue arises.
  • As a project moves forward, look to keep all parties updated through progress reports prepared
    by who is managing the project and ensure all participating contractors are sent updates as well
    to ensure all agree at each phase.
  • At project completion, ensure full project reviews are undertaken and any holdback, warranty,
    future maintenance requirements, etc. are discussed and recorded.

Please remember this advice when considering your next project!

Corey Sargeant RCM,
President,
G3 Property Solutions Ltd

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https://cci-grc.ca/wp-content/uploads/2024/03/Blog-Titles-CCI-1-1.png 300 750 Ariel P https://cci-grc.ca/wp-content/uploads/2023/09/CCI-Full-Logo-Grand-River-31ae3da81a2928943167b28ecdb52b1f-300x103.jpg Ariel P2024-03-21 11:02:232024-03-21 11:03:49Preparation for Capital Projects

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