Facilities managers must master many skills to be effective. Communication, multi-tasking, technical knowledge, and resilience to name a few. But in a market disrupted by pandemics, climate change, tech innovations and new regulations, knowing how to prepare for the future can be a challenge. To narrow things down, we asked FM experts in both education and the private sector to give us their perspectives on what skills FMs should be shoring up now for the future. What we found was not just a focus on new tech, but a good mixture of hard and soft skills, with the latter leaning heavily on communication.
1. Innovation Awareness
Tech tools for FMs are growing steadily, with an expanding list of digital solutions for BMS, CAFM, CMMS and energy management. The 2018 Global FM Market Report reports cloud-based services and anything-as-a-Service (XaaS) models will be two major trends moving into 2025. In short, the complete digitalisation of building management is fast approaching.
While digitalisation and automation produce more accurate building data and save time, such a dynamic tech landscape requires FMs to stay savvy about new tech. Dr. Eziaku Onyeizu Rasheed, a Senior Lecturer at Massey University, explains:
“Since the start of the Facilities Management profession, the FM’s role has evolved from the technical maintenance of building systems to more proactive, digitalisation of building management. So, FMs need to upskill to be conversant with the associated technological innovations.”
The struggle to keep up is putting pressure on already over-extended FMs. However, resources like online courses, industry blogs, workshops, conferences and FM organisations help fill knowledge gaps with the least time investment.
We can’t always know what’s happening with our audiences’ viewpoints. We can’t know how they got there, or how they take in information. But what we can do is create connections, and from that understanding.
Phoenix Lavin, Design and Construction Interface Manager
2. Perspective-Taking
In psychology, perspective-taking is the ability to perceive a situation or understand a concept from another person’s point of view. It’s a key personality trait for FMs who must manage many stakeholders and consider different perspectives. And with the pandemic and changing workspaces disrupting normal routines, FMs must adapt quickly. Adopting another’s perspective can facilitate that change quicker and easier.
“You need the ability to adapt your ideas with those of others,” Rasheed explains, “and to be aware that there are different views of particular issues and topics.” Her point is well taken: consensus and compromise first demands an accurate understanding of another’s stake in the situation.
Phoenix Lavin, a Design and Construction Interface Manager at Programmed, agrees. Lavin is a veteran FM who’s honed her skills of perspective-taking. She suggests the first step is tackling one’s own unconscious bias:
“We all bring a perspective to the table that’s informed by our ethnicity, race, socio-economic status and education level. These biases often ‘blind’ us to how others see issues.” she explains.
So how do you overcome unconscious biases? You don’t completely. It’s something to be managed rather than “cured.” However, for Lavin part of the answer is creating meaningful connections with others. Connections force us to see others as individuals rather than obstacles. “We can’t always know what’s happening with our audiences’ viewpoints,” she explains. “We can’t know how they got there, or how they take in information. But what we can do is create connections, and from that understanding.”
3. Building Systems Basics
Modern building management systems now automate much of the reporting, scheduling and monitoring for FMs. But today’s property managers still need a basic understanding of hard building systems for proper asset management.
Gas, plumbing, HVAC, electrical, and fire safety are each complex systems in their own right, but today’s smart building technology is integrating each into a larger, connected whole. FMs must manage the complexity of these connections, which begins with a good foundation in technical knowledge.
Technical knowledge has even more value today, given the break-neck pace of technological and environmental changes. Rasheed highlights the importance of technical skills. “While their role has expanded to include the importance of soft skills,” she states, “today’s FMs still require technical knowledge to successfully navigate the complexities of the profession, especially in emergency situations.” A foundation in technical knowledge is an effective stopgap against the uncertainties of global warming, cybersecurity threats, pandemics and an evolving workplace.
Today’s FMs still require technical knowledge to successfully navigate the complexities of the profession, especially in emergency situations.
Dr. Eziaku Onyeizu Rasheed, Massey University
4. Communicating to Influence
All facilities managers need a deep understanding of communication. They tackle everything from delivering bad news on a CAPEX project to breaking down a technical topic for end-users. “What makes a good FM,” says Lavin, “is the ability to take information, process it, and then deliver it in a way that’s understood by your audience.”
It’s a straightforward notion, but Lavin explains there’s a deeper complexity to effective communication than simply sending and receiving messages:
“Effective communicators also seek to influence,” she says. “They ask: What is it I want my communication to do? Where am I driving people? I do a lot of organisation transition and change management. Sometimes that change is painful. I have to move an organisation away from the trainwreck they’re heading towards, and there’s a bit of grief and disruption.”
Lavin’s “soft landing” approach helps build inclusion and influence. “Soft landings are when we take the time to introduce people to change,” she explains. “And rather than leaving people feeling like change is being forced on them, it’s about how they can see themselves in this new building/facilities and how they feel engaged and part of the build and operation process.
“I’ve got to gently move you around here so you barely realise you’re going around the corner, and then voila! All of sudden now it’s your idea not mine. That’s the influencing component of good communication.”
5. Communicating to Build Credibility
Lavin adds that good communicators also work hard to establish their credibility, which takes more than just demonstrating your expertise on a subject. Sometimes it requires changing someone’s perspective of a situation or showing their non-expertise.
“It’s hard to create credibility in a job that people feel they can do themselves. With soft services, for example, everyone thinks they can do it. No one thinks there’s any technical know-how or planning in these things. It’s a bit like painting your house. Everyone feels they can paint their own house because they see people do it on TV…that is, until they go to do it.”
Lavin suggests overcoming these types of biases by reframing the situation. “You may come up against someone who says: I just don’t believe it takes two hours to vacuum a room. So, I ask them ‘How did you get to this idea?’ and they say, I compared it to vacuuming my own house.’ I ask, How often do you vacuum your house? and they say, Once a week. I say, “Well, how about I get the cleaners on your floor just to vacuum once a week for the next month. We’ll still pay them the same. Then you tell me how your physical environment feels to work in after a month.’ So far, no one’s taken me up on the offer.”
6. Adaptability
If FMs had a master soft skill, it would be adaptability. Like the buildings we manage, we like to think of our processes, habits and personalities as strong, immovable, structures that produce predictable outcomes. And while the work of facilities management has always required a certain level of nuance and flexibility, those personal qualities are in higher demand today. Pandemics, building tech, governmental regulations, flexible workstations and artificial intelligence are disrupting the management of built environments.
What’s more, the rate of change is faster than the production of new FMs, so continual education and adaptability are certainties for anyone looking to make a long-term career in facilities management. “Our ideas and practices cannot always be repeated,” Rasheed explains, “but we should adapt them to the prevailing nature of events. FM practice must adapt to accommodate these changes and remain relevant to organisations.
Ransomware attacks are now a global threat. Between 2019 and 2020, attacks rose by 62% worldwide according to the 2020 Internet Crime Report. Attacks like the Colonial Pipeline in May 2021 are high profile cases that garner media attention, but SMBs and facilities of every size are now targets of cyber thieves.
Hospitals and medical facilities are favored targets because they house sensitive medical records. Facilities like these are in no position to bargain with cyberthieves, and they end up paying hefty ransoms to recover sensitive information. And the financial fallout from ransomware attacks is significant, with security experts estimating global ransomware losses to hit $20 billion in 2021, which is 57 times the cost just five years ago.
There’s a lesson to be learned for facilities managers: letting your properties become vulnerable to a ransomware attack is costly. Instead of paying cyberthieves, invest resources into mitigating your risks: shoring up your IT services, educating staff and creating response plans.
What is Ransomware?
Ransomware is a type of malware that enters your computer system and/or network and encrypts your data. Users lose access to files, applications and/or their databases. To decrypt the data, cyberthieves demand a ransom, and if the ransom isn’t paid, the data is destroyed.
Ransomware finds its way into most systems through direct attacks on software weaknesses or by exploiting human error through phishing emails. Once it infects your system, ransomware is programmed to spread to connected devices, encrypting more documents, spreadsheets and photos as it grows.
Train Staff on Cybersecurity Best Practices
Cyberthieves exploit human weakness to gain access to your data. It only takes one staff member clicking on the wrong email link to put your building data and tenant info at risk. That’s why beefing up your team’s cybersecurity skills is a top priority. Cybersecurity habits like these help you avoid many types of computer viruses and malware.
Updating Operating Systems
Operating system (OS) updates include the latest virus signatures and definitions. Older versions don’t, which makes them more vulnerable to cyber attack. Have your team set up auto updates for their Windows and Mac OS and installed programs. That way, forgetting isn’t an issue.
Identifying Phishing Emails
Email is a common entry point or “attack vector” for cyber criminals to deploy malware, and humans are notoriously susceptible to their exploits. Train your staff how to identify a phishing email to keep your network free of ransomware.
Creating Strong Passwords
Weak passwords let cyberthieves walk right into your facility network. Unfortunately, too many employees opt for weak, yet popular, passwords like “123456” because they’re easy to remember. Teach your team the simple steps of creating a strong password or consider investing in a password manager, which automates the process of creating and remembering strong passwords.
Turn on Two-Factor Authentication
Remind your team to implement two-factor authentication when possible. Turning this feature on adds an extra layer of security by requiring the users to identify themselves with a mobile device or an authentication app. Each user typically authenticates their sign in through a PIN number or biometric scans like a fingerprint.
Backup Your Data
Since ransomware targets your data, backing it up can help mitigate losses from encryption. Still, data backup has its limitations and can’t protect you like an anti-malware software, for example, but it does offer the insurance of data replication. In other words, it’s an after-the-fact solution rather than real time protection.
Data Assessment
The first step in building effective backup is making sure you are backing up ALL your data. Some FMs may manage multiple facilities, each having separate databases and devices. Do you know where your critical info is stored? What about your team members? Are those with assigned devices backing up their data correctly? Critical data can easily be overlooked, which is why experts suggest conducting a data audit.
3-2-1 Rule
Data storage experts often advise business to follow the 3-2-1 Rule:
Make 3 copies of your facility data: a production copy and two backups).
Store your copies on 2 different media types (e.g., USB Drive, CDs, magnetic tape).
Keep 1 copy offsite from your facility.
Ransomware moves throughout your system, and any connected devices are susceptible. The intention of the offsite rule is to “air gap” your data, removing it from the network completely. Cloud storage is considered “off site” but is also susceptible to the same attack if backups are updated too quickly. In other words, your cloud storage could begin backing up already encrypted data before you became aware of the attack. This is a risk for most backup systems, which is why physically disconnected storage is essential.
Get Ransomware Detection Software
Cloud-based companies like Microsoft build ransomware detection into their online storage platforms (i.e., OneDrive), but if you’re not using cloud-based storage, this doesn’t help. For an added layer of protection against malware, invest in a cybersecurity software that meets your needs and budget. Most major cybersecurity software brands include ransomware protection and decryption tools within their plans. While malware software isn’t a replacement for good cybersecurity habits and data backups, it does add redundancy to your system.
Include Ransomware in Your IRP
Ransomware attacks are high-pressure situations. Time is critical, and decisions have to be made on the fly. So preparation is key. Ensure your incident response plan (IRP) includes ransomware mitigation strategies. There are several basic steps most experts agree businesses should take when attacked by ransomware:
Don’t pay the ransom. Experts say paying only puts you at risk of being targeted again. Plus, acquiescing only makes the problem worse for everyone else by financially incentivising the criminals.
Disconnect devices. Your first move is to stop the malware infection. Disconnect your devices from your network and the internet. Unplug ethernet cables. Remove storage devices like thumb drives. Disable wireless connection (wifi) on your mobile devices.
Get evidence. Take photos (with an uninfected phone) of the ransom notes and any correspondence with the thieves.
Run a malware scan. Use the Task Manager on your Windows 10 devices to run a scan for ransomware. Shut down any Apple devices.
Reset passwords. Change your passwords for your admin accounts.
Get help. Solicit professional IT services for advice or help. You will likely need their services to ensure your network and devices are free of malware before reconnecting.
Report the incident. Government cybersecurity agencies like CERT (NZ) can help you navigate the incident, record the attack and notify other businesses of the threat. Other reporting agencies include IC3 (US) and ActionFraud (UK).
At some point, you may want (or be legally required to) notify your tenants of the data breach. If there is a potential for the malware to spread to your tenant’s networks, early notification will help their office managers execute their own IRP’s. If cross-contamination is a low risk, you might move notification to a lower priority. Consult legal experts around your specific reporting requirements and adjust your IRP accordingly.
When protecting your facilities from malware attack, think in terms of “layers” of protection. You and your team members are the first layer of defense. Your virus software is another. The more stopgaps you have, the better your chances of avoiding infection. It pays to invest a little time and money up front than to deal with the fallout from a successful hack. And remember, when it comes to ransomware, you’re not an island. Successful criminals go on to rip off other businesses, so your action or inaction directly affects the profitability of others.
Technical writing skills are essential for today’s facilities managers, who must produce a wide range of communications for a variety of readers. One day, you might be writing a CAPEX proposal for an executive, the next pinning a “how-to” memo for janitorial staff. So versatility and speed are prime requisites. Here are five technical writing tips that will improve the effectiveness and clarity of any written communication.
Tip 1: Fast-Track Your Audience Analysis
While some projects do require an in depth look at your audience, most FM technical writing can get by with evaluating a reader’s knowledge level of a subject. Use these three questions to fast-track your audience analysis and make your writing more targeted and concise.
What does my audience need to know?
This question delineates the key parts of your goal and states the desired outcome. The answer is usually one sentence, such as “To appropriately dispose of PPE” or “To understand the benefits of a third-floor remodel.” How well you answer this question determines your writing’s success or failure.
What do they already know?
Your audience’s attention and time is valuable, and you will lose both with superfluous information. Any steps, data or info your audience already brings to the writing should be jettisoned. Include information that’s “on the fence” within footnotes or at the end of your main document.
What do they not know?
Are there ideas or information you need to provide before your reader even begins the process of reading? Identify any assumptions you have about your audience’s experience, education and knowledge or else risk alienating them. For example, the goal of your writing may be “to explain the benefits of replacing the boiler system” but your assumption is that “every owner already knows the function of a boiler.” When in doubt, over-explain.
It’s obvious that the second and third questions are at cross purposes, and you must be vigilant in separating the “wheat from the chaff.” This is a good thing. The push and pull makes you an active writer, forcing you to constantly examine your information for relevance.
Tip 2: Use Active Voice
Writing in active voice is one of the most ubiquitous technical writing tips around, so it’s worth repeating. When you write in an active voice, you follow the standard sentence structure that puts the subject before the verb. This is opposed to passive voice. Here is an example of each:
Active Voice: “We ask that all tenants follow the recycling protocols for paper waste.”
Passive Voice: “We ask that recycling protocols for paper waste be followed by all tenants.”
In the above example, the subject (“tenants”) comes before the verb (“following”). In passive voice, the opposite occurs. So, what’s the big deal?
Well, active voice imbues your writing with confidence and presence; passive voice leaves it sounding flaccid and lifeless. Putting the subject after the verb also creates the sense that you’re trying to hide or downplay the actor of the action; it leaves a hint of insincerity and doubt in your tone. This is why committees and boards often deploy passive voice to mitigate responsibility for their decisions (“It was decided that…” rather than “The Board has decided that…”). Use an app like Grammarly and Hemingway App to identify and remove passive voice in your writing.
Tip 3: Add Graphics…Then Add More
One of the most effective writing tips isn’t about writing at all. Pictures really are worth a thousand words, and adding visual elements like tables, graphs, illustrations and photos improves your overall communication efforts. Graphic elements add dimension to your document’s layout and give a much needed break to monolithic walls of text. Much like a road-weary traveler, your reader needs the occasional “off-ramp” to rest and regroup—graphics are fit for purpose.
Some FMs find one barrier for using graphics: time commitment. While it does take some time investment to create graphics, today’s online apps significantly speed up the process. Bookmark these design tools in your browser and use them to churn out graphics for your next technical writing project or presentation :
Canva—Online design app for creating presentations, posters, and graphs for free.
Note: It’s certainly possible to use too many graphic elements, so be strategic. Like every word you write, each image in your layout should serve a function, whether explanatory or merely aesthetic.
Tip 4: Examples are Your Secret Weapon
Relevant examples distill a complex idea into something relatable and real. Plus, including examples in your technical writing forces you to consider real world implications for your information; it proves to the reader that you’ve considered the information or argument from a practical perspective, rather than merely a theoretical one.
For example, say you wanted to include after-hours AC charges in your standard commercial lease and wanted to make sure your tenants understood the process. After explaining your formula (Fixed Rate x Number of Operating Hours = AHAC Charges), you could include an example calculation:
Tenant A uses 10 hours of after-hours air conditioning for the month of January, their total charge would be $75/hr x 10 hrs = $750. Tenant B uses 15 hrs for June. Their total AHAC charge would be $75/hr x 15 hrs = $1,125.
When including examples, use real world data and situations. If the above example reflected actual electrical usage rates for the property, it would communicate to tenants how much they should expect to pay.
Tip 5: Match Your Writing Structure to Your Purpose
Your writing purpose should, in large part, determine your structure. That is, let form follow function. Is your writing meant to inform, to persuade, to explain or do something else? For most FM writing, the goal is explanatory or informative. Here are several common writing structures to aid both types:
Steps-in-a-Process
Listing and explaining steps is an effective way to organise information for a process. Steps-in-a-process is appropriate for a short memo or “how-to” manual showing tenants how to sign onto an online portal. Step-by-step formats also work for longer, more complex processes when you group the steps. If your O&M manual contains 75 steps, chunk them into larger sections. Presenting steps in this way helps your audience conceptualize the larger process and aids memory, much like chunking a phone number into parts.
Hierarchy
Technical writers often organise informative pieces based on priority, typically moving from highest to lowest. Use introductory paragraphs and summaries to highlight key points, orient your reader and save them time. For legal documents like SLAs, start off by defining the most important concepts (e.g., “parties” or “description of services”) and end with the standard T&Cs. In contrast, moving from lowest to highest priority is effective for more persuasive writing. If you’re trying to justify an investment in CAFM or IWMS, for example, present your best reason at the end. It gives your argument an emotional punch.
Time
Time is an intuitive way for readers to understand information based on an order of events. Progress reports are the perfect project for a chronological framework. Most begin with past work completed, move to the present and then explain any future work to be done. Incident reports and disaster preparedness manuals are other candidates for a time-based framework because they guide readers through a series of events.
There is no one “correct” structure for any technical writing project. Your topic may not follow an A-to-B format or have priority points to make. Regardless, it’s essential you deliver on the purpose of your writing. Whatever meets that goal is the structure you should use.
Conclusion
Use these five technical writing tips as a starting point to improving your communication. And include this last tip: be patient. Few FMs has the time or patience to invest in becoming a better writer, so it’s critical to be realistic about your progress. Find opportunities during your day to practice. Rather than tackling all at once, master one of these writing tips at a time. Ten move on to another. An incremental approach improves your odds of sticking to it.
Counting every kWh your property uses is important for your NABERS Energy Rating assessment. The more detailed your records, the more accurate your rating will be. Getting a true picture of your energy consumption means including and documenting your after-hours air conditioning (AHAC) service.
The NABERS Preparing for Office Rating Guide is a helpful resource for identifying what basic information to gather. But the guide doesn’t get into the specifics around documentation for AHAC. Documenting AHAC hours can be tricky given they’re usually tracked separately from normal operating hours. For a deeper dive, we recommend the NABERS Energy and Water for Offices Rules v.5.1. Although this resource is as a guide for assessors, it also provides valuable insights for FMs and property managers.
The Rules around AHAC are complex and hard to drudge through, so we’ve done the work for you. Below is a breakdown of the NABERS Rules for documenting AHAC, which will better prepare you for your assessment.
Rated Hours
NABERS assessors calculate the total number of hours per week your building is occupied—your rated hours. Assessors use your rated hours along with your annual kWh usage and other factors to determine your efficiency rating.
To calculate your rated hours, assessors will look at your core hours. These are your normal operating hours per week (e.g., 8 am to 6 pm). Core hours are usually listed within the owner/tenant agreement (OTA), and the assessor will likely use your OTA to help determine these.
To increase accuracy, assessors also include any AHAC hours. Your HVAC system uses energy to produce the AHAC service, so you should count these hours too. Any missing AHAC hours skew your total rated hour count, lowering your NABERS rating. And the impact will be proportionate to the total hours demanded. That is, the more AHAC hours omitted from your rated hours, the more inefficient your property will appear.
AHAC Documentation
The negative impact of omitting AHAC hours is why it’s critical to keep accurate logs of tenant requests. For NABERS, not just any records will do either. Assessors must deem data “acceptable” or else include it in the calculation. The NABERS Rules lists the following types of “acceptable data.”
Tenant Requests
Section 5.3.3.1 of the NABERS Rules addresses AHAC requests and states that “acceptable data” includes:
Logs of AHAC requests by tenants, showing the date and time of each request and the functional space to which it applied; and
Evidence of other AHAC requests, such as correspondence between the tenant and the owner or building manager or information written into the OTA which has been verified to be correct and up-to-date. This evidence must include the date, time and space to which AHAC has been agreed to be applied.
Therefore, an example of acceptable documentation might be an automated entry from an after-hours HVAC app that records date, time, floor and tenant. Unacceptable documentation might be a tenant email listing only the requested date and time. The most important part of accurate documentation is the tenant’s request, so keep this in mind when setting up your request process.
Overlapping Hours
To be considered rated hours, AHAC hours also can’t overlap with your core hours. So you’ll need acceptable documentation showing their separation. Section 8.3.2 of the Rules explains that to include AHAC hours, you must provide:
Evidence that no AHAC has been counted during the Core Hours and during the plant start-up period or the hour before the start of Core Hours if the plant start-up period is unknown;
One thing to note here: NABERS focuses heavily on counting only “comfort condition” hours— times when internal temps are appropriate for occupancy. Assessors assume that comfort conditions are not met during the start-up time for your plant. For that reason, you can’t count any AHAC hours that occur during start-up times for your system. If you can’t provide evidence of the actual run up times for temps, assessors will assume one hour.
Example: Your OTA lists your core hours from “8 a.m. to 6 p.m.” Your normal plant start-up time begins at 7 a.m. to reach comfort conditions. Tenant A requests AHAC from 7 a.m. to 8 a.m. on Wednesday, but your start-up time for Wednesday stays at 7 a.m. (i.e., AHAC and start-up begin at the same time). Since your building isn’t at “comfort conditions” by 7 a.m. on Wednesday, you can’t count that AHAC hour towards your rated hours.
Zones and Functional Spaces
To calculate AHAC hours, NABERS assessors also need to divide your net lettable area (NLA) into functional spaces— specific areas of your building. Functional spaces can be based on tenancy distinctions (i.e., leases) or physical ones (e.g. HVAC zones), but variations often happen. For example, multiple tenants could occupy the same functional space by leasing the same floor. In contrast, a single tenant might occupy separate functional spaces.
Regardless, the goal of defining functional spaces is to group areas with the same periods of occupancy so assessors can calculate the effects of vacancies and different operational hours on your building’s efficiency.
For facilities managers, the important thing to note is that AHAC requests need to reference their correct functional spaces. This is especially important when multiple tenants share the same functional spaces. Accurate records and detailed building schematics are essential, and assessors will use them to calculate your rated hours. To this end, Section 8.3.2 of the Rules requires documentation in the form of:
Drawings and measurements showing AHAC zones for requests serving different zones within a single functional space.
If the NABERS assessor can’t locate detailed areas for different AHAC zones, they will use the smallest area available or else average hours together. Either way, any guesswork will lower the accuracy of your rated hours.
The rules around multiple tenants sharing functional spaces and zones can get quite complex. So, read section 5.3.3 of the NABERS Rules to see what situation fits your properties the most.
Conclusion
The way your NABERS assessor handles your AHAC consumption will depend on several factors. One of those is how they arrive at your core hours. There are several methods for doing this, which depends on what data you make available. The assessor may determine your core hours from your lease. If data is missing, they may need to calculate an average, and when estimates are involved, you can bet they won’t likely benefit your rating. In the end, the key is proper and thorough documentation of your AHAC requests, HVAC zones, and NLA.
After-hours HVAC charges are a sticky OPEX budget item. Normal core hour rates are predictable. Power providers determine your property’s kWh costs for you. But with after-hours AC, managers must calculate the hourly rate themselves. And it’s work that needs to be done right if you want to recoup your full utility outlay.
With figuring after-hours AC rates, you get as much as you give. The more detailed your cost analysis, the more accurate your rate. And an accurate rate will refund your actual utility cost per hour, an inaccurate one won’t.
But determining detailed costs also takes time—your time—and that’s valuable. There must be a middle ground—an approach that minimises time while maximising resource win back. To locate it, we approached FMs working today for their input on striking a balance. Here’s what they told us.
Lock In the Parts of Your AHAC Rate Early
Most after-hours AC rates need to include more than electricity for chillers and boilers. For sure, there’s the fixed energy cost of your HVAC system to consider (more on that later), but what about other resources and services you provide? Lock in these costs early. It will give your calculation process more focus and direction. But what are the other costs?
If you’re managing an office space, your tenants may need access to lift services, parking and hallway lighting. If you’re a university, you may need to add security and cleaning services to the charge. FMs with manual AHAC programs need to include an admin fee to cover staffing costs. Someone will need to record the after-hours request, program the BMS and handle cancellations.
Start with the most obvious expenses and work your way to more granular items. Go as far as practicable for your situation. Some guess work is inevitable, but at least identify each hard cost. You can always discard extraneous ones later. Besides, you’ll need the list later when drafting your AHAC clause for your lease. Listing excluded costs in your lease is a smart way to quell tenant complaints about future AHAC increases.
Fixed Energy Cost: “Keep it Simple”
Since it’s your biggest electricity hog, your HVAC system will make up the bulk of your energy use for AHAC. Therefore, it results in the biggest potential for annual OPEX losses. So accuracy literally pays here.
The simplest (least accurate) method would be to divide your annual energy bill by the number of standard operating hours per year. It’s a simple, but rough estimate that lumps every kWh into the same basket. It tells you how much it costs to operate your property, not your plant. The lack of kWh discrimination could result in under or over-charing tenants and making your property less profitable.
At the other end, an FM could attempt to record their plant’s actual kWh usage in real time. Smart meters and EMS equipment give real time feedback, but they’re expensive and complex to integrate. Stuart Bryant, GM for a large property holder in New Zealand, explained how his company attempting to calculate their AHAC costs with smart meters:
“In one instance, we installed a series of TOU meters across all distribution boards that controlled the mechanical plant to work out the ‘actual’ energy usage. This worked but was complicated, and I wouldn’t recommend it.”
Such a granular approach is costly—both in time and money—and, by the end, may be more trouble than it’s worth. Even if benchmarking your property’s kWh usage is the point, usage rates and costs fluctuate throughout the year, so the accuracy you locate at one moment will inevitably vary from season to season.
“In one instance, we installed a series of TOU meters across all distribution boards that controlled the mechanical plant to work out the ‘actual’ energy usage. This worked but was complicated, and I wouldn’t recommend it.”
Stuart Bryant, GM
“I’ve found that a simple system (agreed with the tenant up front in the lease) works best,” Bryant states. His point is notable: simplicity can be preferable to accuracy, especially when tenants are involved. Simple calculation methods are much easier to get tenant buy-in from the get go. Complexity often breeds skepticism, as tenants fear hidden costs lurk within convoluted processes.
Pro Tip: Schedule an energy audit. Whether it’s for a NABERS assessment or simply to save on energy bills, an energy audit gets the hourly data you need to calculate your fixed energy costs. Plus, it increases your sustainability.
Should You Include Depreciation?
Including accelerated depreciation will likely depend on the complexity of your HVAC system and budget. After-hours AC requests do shorten the lifespan of your equipment, so if you decide to recoup that cost, make sure it’s worth your time. One way to manually calculate depreciation is to research ASHRAE reported estimates for each piece of HVAC system, but this is complex and time consuming.
FM’s with access to asset management systems can speed up the process. Some AMS software use built-in ASHRAE reports to predict equipment life cycles. These programs can serve as a helpful guide for adding hourly depreciation to your AHAC if you have access to them.
Still, other FMs are using experts to fill in the depreciation data gaps. Bryant explained that his company solicited incumbent engineers to gather data for calculating depreciation. He notes, “Having the independent data and showing the workings meant a simple explanation to tenants when they’d questioned costs.”
Bryant’s quote highlights a critical piece of the AHAC puzzle: third-party validation. Soliciting experts is expensive, but it also adds independence and credibility to the data you collect. For some managers, ensuring a calculation that reassures tenants is worth the upfront investment. For others, it may be an unnecessary cost.
Aim for Fairness, But Be Practical
With AHAC, the notion of tenant fairness will inevitably creep into your calculation. While buildings with only one HVAC zone make figuring AHAC costs fairly straightforward, multi-storied buildings introduce complexity. Consider these two situations:
Situation #1: Tenant A is a data center and Tenant B is a law firm. Tenant A uses five times the electricity as Tenant B.
Situation #2: A building has two HVAC zones: Zone 1 is bigger and requires $50/kWh to cool. Zone 2 is smaller and only requires $30/kWh.
For Situation #1: How do you plan for this discrepancy in power usage? Is it fair to charge both tenants the same rate for after-hours AC? For Situation #2: If you opt to go with the $50/hr charge for your AHAC rate for all tenants, aren’t tenants in Zone 2 getting ripped off?
These are fair questions to consider, and there are practical ways to provide for exceptions. For example, FMs with a multi-tenant building could average their electricity costs across HVAC zones:
Floor 1 – 3 = $22/hr
Floor 4 – 8 = $36/hr
Floor 9 – 12 = $30/hr
Average = $29.33/hr
Averaging in this way spreads the cost more equitably among tenants, but the process assumes that energy data per zone is easy to come by. Plus, most FMs want only one AHAC rate for all tenants because it keeps leases consistent and billing easier. So, while you should strive for fairness, stay practical in your expectations.
Bryant says shifting your perspective on after-hours AC is beneficial here. He suggests thinking of it as a one time “cost of service” rather than a pro rata charge. “Again, I think simplicity is the best policy here,” he states. “The basic calculation that tenants have agreed to pay when using AHAC is most important. It doesn’t matter if one or multiple tenants are using it at the same time because it’s really a cost of the service you’re providing for each.”
Keep Sustainability a Priority
If you’re not on top of them, after-hours requests can tank your sustainability efforts. Without an effective booking system, cancellations and reschedules may have you heating or cooling empty spaces. Make sure you’re automating as much of the process as possible. Consider investing in technology to help, like an AHAC automation app that lets tenants order after-hours AC from their smartphones. Automation helps you conserve time, money and energy.
Plus, look for opportunities to work with individual tenants to save energy during their requested hours. Bryant suggests starting with tenants who make regular requests. “Talk with the tenant or landlord about ways to minimize their electricity usage during this time. Consider adjusting your BMS for better control of temperatures. It will limit the usage of your main plant and reduce electricity and/or gas consumption.”
Conclusion
Tenant satisfaction is a key “cost” of sloppy after-hours AC calculation. Overly complex processes, infrequent communication, and billing inconsistencies lower tenant satisfaction and occupancy rates. Tenants unfamiliar with AHAC may question the need for a separate billing at all. Others may be confused by the idea of delivering a utility-as-a-service. A few may even dispute your fixed energy rate. Many tenants simply forget the AHAC agreement exists, leading to angry emails about mystery electric bills.
These situations are why setting expectations with tenants is so valuable. “Agree to the cost and workings of the plan up front with the tenant,” Bryant advises. “Spend the time early to avoid spending time each month discussing and explaining costs and charges.”
