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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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