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Due to the way that automation systems are designed and
                                       procured both within the new construction process and when
                                           they are being replaced at the end of their useful lives, the
                                                                             potential is seldom actualized.








          The end of life ‘choice’ then really becomes when to   facility-related end results for the building owner/occupant.
          replace the system, since without replacement the build-  In this context, a rationale service provider would be
          ing environment and the operating costs would ultimately   motivated to design and build a system that provides
          run out of control. Even considering this, given the low   maximum efficiency (in delivering the customer’s desired
          returns on in-kind system replacements, many CFOs will   end results) at minimum costs. This approach provides
          choose to not replace the system until disaster is immi-  the intended ‘first cost controls’ of the new construction
          nent. The logic behind that choice is ‘bad investment,   or end of life replacement bid processes and contributes
          don’t fund it’ or more accurately ‘bad (but necessary)   to the service provider’s profitability.
          investment, delay funding it as long as possible.’ Frankly,
          it is hard to argue this point with the CFO, given his or   Everybody wins.
          her fiduciary obligation to the shareholders to use scarce
          capital wisely. There is however another line of thinking to   The client gets a better performing building and the ser-
          explore when faced with this ‘bad investment, don’t fund   vice provider grows a business grounded in sustainable
          it’ scenario - and that is to restructure the investment   value. This clearly represents a substantial improvement
          opportunity, thereby improving the returns.          from what is typically delivered to the building occupant
                                                               and owner today, via the new construction process, or
          As noted earlier, the automation system, in its optimal   when at end of life, an old inadequate, system is replaced
          deployment can facilitate interactions between the vari-  in-kind with a new, inadequate system.
          ous subsystems in the building (HVAC, Lighting, Access
          Control, Security, Fire, Life Safety, Building Transportation,   Ask yourself if you have faced the ‘bad investment, don’t
          etc.) capturing operating efficiencies and producing a more   fund it’ CFO scenario at an end of life automation sys-
          productive and efficient building environment. Making this   tems replacement or, have you had bad experiences with
          happen would require an intelligent and robust system   the results of new construction automation systems
          design that survives the new construction or system   installations?
          replacement bidding processes. It would also require
          that the system ultimately provided would feature an   If so, you can continue to do the same things, the same
          open communications protocol so that useful interactions   way, and get the same results; or change the game.
          between the various systems can take place in support of
          the occupant’s mission to achieve the most comfortable,   You decide.
          productive, secure and efficient environment possible.
                                                                          Joseph Feuling is the Vice President of Solutions
          It is highly likely that the only way both things will happen   at CBRE|ESI providing Smart Building, building
          is if these system-related decisions are isolated from the      automation and integrated security solutions to
          usual machinations of either the new construction, or           organizations with a focus on high level systems
          in-kind replacement system procurement processes; and,          integration, data analytics, managed services and
          instead made as service based decisions on the customer’s   business intelligence applications. Joe has 32 years of experience
          part, within a service based delivery model on the part of   in building automation and security industry and has published
          potential service providers. In other words, potential service   many articles on systems integration. Prior to joining CBRE, Joe
          providers would be asked to install and maintain (through-  held the roles of VP of Technology with System Solutions Group
          out its life) a system capable of providing the desired   and Director of Operations with Central Control Alarm Corp.

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