Business Models for Upscaling Building Renovation (retrofit)

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Information about Business Models for Upscaling Building Renovation (retrofit)

Published on March 3, 2014

Author: TippEnergy



Paul Kenny's presentation at the 'World Sustainable Energy Says: Near Zero Energy Buildings in Wels, Austria on February 27, 2014

Business models for upscaling building renovation (retrofit) World Sustainable Energy Days Wels, Austria 27th February 2013 1

Overview • Business Model # 1 – Social Housing Upgrade Management System Model Public and Community Housing Renovation/ Retrofit • Business Model # 2 – Client Partnership Model Achieving energy savings in multi-site distributed organisations 2

TEA Social Housing upgrade model Business Model # 1 Public and Community Housing Renovation/ Retrofit 3

Irish Housing • 95%+ cold roof • 50- 60% cavity wall construction • ~ 52% oil; ~38% gas; Electric storage/ Peat/ coal ~6%; 2% RES-H 5

The (Irish) Challenge • 1,800,000 Homes requiring upgrading • 250,000-450,000 low income/ Public housing • Approx.: 20,000 -30,000 shallow retrofit per annum. • Need 130,000 deep retrofit per annum to achieve 20% by 2020. • Challenge – 6 times the number – Double the retrofit depth. • Similar challenge across many EU countries 6

Traditional public procurement House/ Houses identified for upgrade Architect/ engineer appointed to write tender Tender completed Upgrades completed Quality / cost management 8 weeks; €600 12 weeks; €300+/ tenderer 8 Weeks; 4 Weeks; €100 - €300 QA 32 Weeks; €1000+ ìnternal admin costs 7

Requirements • Pre priced Tender (2 years) standard elemental – Mini-competitions for non standard works • • • • • • • • Automatic administration of regulatory compliance. On site app led surveys. Design of retrofit = < 1 week Improvement in QA using internal or external resources Accountability of Contractors for time, H&S, QA, costs. Secure & robust system. No Paper. Full online archiving and auditing. 6 weeks to completion. Cost, time and outcomes improved 8

Stakeholder Roles Building professional Receiving list of houses to survey, pre works survey (& BER if req’d), Post works survey & BER upload, QA of works LA Administrator: Managing upgrade scheme – ITT, issuing houses for upgrade, issuing task orders, approving payment Contractor: Upload ITT prices via template (once), Receiving & Accepting task orders, Issuing Declaration of works LA Tenant Liaison officer (on site): Receiving lists from LA administrator, Pre works surveys (if req’d), Post works QA TEA: System Customisation, Training, Support LASHUMS 9

Solutions for 202020 Building professional (internal or external) House Database Building Survey List of Upgrade Requirements Householder / Tenant Liaison Local Authority Panel of Contractors: -Term Maintenance contract -Annual contractor tender -Standard specification -Schedule of rates (per meter etc) Social housing Automatic Management of Tax & Insurance Management System (WEB-Based) Inspection process with Building professional Payment admin Quality Management of each contractor 10

System Layout Home Page 11

Sample Screen Shot Contractor Prices 12

Sample Screen Shot Contractor Assignment 13

Functionality • .NET & SQL Cloud based infrastructure • Integrates with Tendering systems, invoice systems, housing databases. • All users see only their relevant interactions – very simple. • Saves contractors and housing owners significant time and money. • Lesson to be learned / principles: – – – – Business process efficiency (minimising touches, rework) Implicit rewards hard wired Minimise internal and external costs Time = Money 14

TEA Client Partnership Model Business Model # 2 Achieving energy savings in multi-site distributed organisations 15

TEA Client Partnership Model • Large distributed organisations with multi-site locations make ESCO’s difficult to manage/ operate/ make attractive. • Barriers to energy management identified: – – – – – – Identification of savings Procurement of “energy upgrade ” type works not core competency Design of more complicated upgrades needs a good brief Business case for finance needs competent analysis Applications for competitive funding needs competent person. Analysis of savings needs a competent person • Challenge: How to get an external organisation to do this cost effectively. 16

Client Partnership Model Fixed price elements Energy Audits Annual energy management: - Annual Energy analysis - Management reports - Supporting energy committee - Partnership & capacity building. - All energy service tender 3-5 Yr Strategic Energy Management Project verification Fixed Rates (Client approves hours) Project Mgt. Project Management: - Project charter based. - Implementation of projects or tender for design where more complicated - Training & 17 outreach.

Tipperary Energy Agency Craft Granary Church St, Cahir Co. Tipperary, Ireland Paul Kenny B.E. MIEI Chief Executive Officer T: 052 7443090 F: 052 7443012 E: W: Thanks for your time. Questions?? 18

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