Solutions in funding capital repairs to existing public & private buildings/facilities
- Oct 12, 2021 11:05 pm GMT
In North America we have a serious and ongoing problem when it comes to funding capital repairs to existing public & private buildings/facilities. Public & private infrastructure is critical to the country and our economy. We need to ensure that our public & private buildings/facilities are sustainable for years to come.
What most people don’t know is that existing public & private buildings/facilities infrastructures that house our children, students and our people are crumbling at an alarming rate. These are facilities that were built between the 1950’s to 1970’s that are today 40 to 60 plus years old. Once built these facilities were forgotten when it comes to on going maintenance/repair and replacement funding dollars. No capital planning funds were put aside for a rainy day!
With today's market reality of Government deficits, debt, and very low capital facility budgets it only gets worse since there are very little funds available to deal with this massive problem. Not to mention the continued rising cost of “Electricity & Gas” that impacts facility operating budgets. These facilities are deteriorating from a life cycle cost to maintain, repair & replace point of view; in building structure, roofing, heating, air conditioning , ventilation, plumbing, electrical / mechanical , IT/ security and safety systems. The cause and effect can amount to mold, inadequate ventilation/ poor air quality for occupants, inoperative heating and cooling systems that create poor comfort and living conditions for occupants, high utility costs and repairs, along with safety and security concerns. Electrical systems that do not supply modern technology.
According to the Intergovernmental Panel on Climate Change (IPCC), “over the whole building stock, the largest portion of carbon savings by 2030 is in retrofitting existing buildings, with new smart energy management control systems and replacing energy using equipment” and energy savings of 50-75% can be achieved in commercial buildings that make smart use of energy efficiency measures. See more at: http://sustainabilityworkshop.autodesk.com/buildings/new-vs-existing-buildings
There are a variety of well qualified, experienced and successful private sector companies that can help create capital and partnering solutions with government & private sector facility owners to solve problems relating to the major barrier in question “cost”. By providing financing options that are cash flow / budget neutral, together with energy savings solutions, including smart building controls, and proving turnkey project management / construction management services and guaranteeing the results.
A simple way of financing some of these changes is to use your existing facilities utility budget ( Gas, Electricity and Water ) to pay down a loan over the payback (ROI) term. Energy savings measures will reduce your utility cost by 25% to 35% but instead of paying that difference to your utility company these dollars can now pay down a loan for the term of the agreement. Applying government and utility co. energy efficiency incentives will also reduce the cost of the installation and the term of the loan.
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