Financial LCCA / GAP Analysis

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What is LCCA?

Life cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. By taking into account all costs of acquiring, owning and disposing of a building or building system, LCCA can benefit all types of ownership. LCCA maximizes net savings by comparing project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs. For example, LCCA will help determine the cost effectiveness of incorporating a high-performance HVAC or glazing system, which requires initial costs but result in dramatically reduced operating and maintenance costs.

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Lifecycle costing made easy.

Our approach has helped several high profile clients avoid unnecessary capital expenditures and choose project alternatives with the highest returns. Going beyond the typical financial analysis (something we jokingly call “kindergarten math”) EBS brings a higher level of decision making ability to our clients. Combining detailed engineering math  with robust financial calculations, EBS provides clients with risk evaluated metrics such as Modified Internal Rate of Return (MIRR), Savings to Investment Ratio (SIR), and of course the king, Net Present Value (NPV). In addition, mixing market conditions and capitalization rate assumptions allows us to prove great value outside of a traditional Discounted Cash Flow approach.Lastly, to round out our robust LCCA services, EBS has developed a comprehensive financial analysis model with conditional parameters that include a sensitivity and/or scenario analysis. EBS’ Sustainability Financial Impact Analysis (SFIA) model was built to provide instantaneous feedback that can be vital for quickly analyzing trade-off scenarios. Our robust Life Cycle costing approach transcends siloed thinking by incorporating all facets of project valuation  –  incorporating technical capacity, the financial equation, and the real world real estate scenario.


LEED GAP Analysis/Feasibility

[foundry_tabs][foundry_tabs_content icon=”” title=”Background”]As the need for sustainable building practices becomes more apparent to business leaders, a new market has emerged to move these ideas from the drawing board to reality. Current economic conditions force developers to focus on cost efficiency, and force asset management companies to focus on cutting operating costs of facilities within their portfolios. To address these needs, EBS has created the Sustainability Financial Impact Analysis (SFIA), which implements GAP Analysis and Life Cycle Cost Analysis (LCCA) as a valuation tool for sustainable practices. The SFIA proves the cost feasibility of sustainable strategies through optimization scenarios and regression analysis. As sustainability and cost efficiency innovators, EBS is leading the industry by supplementing the marketing of intelligent sustainability decisions with accurate financial projections.[/foundry_tabs_content][foundry_tabs_content icon=”” title=”Scope”]The Sustainability Financial Impact Analysis allows EBS to fuse LCCA and GAP analyses by inputting energy audit/modeling information and user defined assumptions (risk, inflationary pressures, etc.) to calculate baseline costs of a building’s current and/or projected operations. From the baseline, the application computes various scenarios with estimated profitability related to implementing sustainable changes to the clients’ facilities. These scenarios are then tailored to determine client specified criteria, such as NPV, SIR, and MIRR, where we then further analyze the data to maximize value and minimize initial costs. With the completion and implementation of the Sustainable Financial Impact Analysis, EBS has created a competitive advantage for our clientele by giving them the ability to customize sustainable strategies to their goals and specifications. When it comes to sustainability, clients often misperceive having to pay a large premium. The reality is that an intelligent approach improves the quality of the facility, decreases the harmful impact on our environment, lowers operating costs, and adds value to the property while meeting the rate of return requirements for even the most ambitious organizations. EBS is currently in the process of further refining this tool and is interested in making it widely available to greater audiences. Check back soon or contact Matt Macko with any questions you may have.[/foundry_tabs_content][/foundry_tabs]

Sustainability Financial Impact Analysis (SFIA)

LEED GAP Analyses is the basis for making sustainable improvements to existing facilities or for planning the construction of new ones. A GAP analysis compares current conditions to optimal conditions and uses the “gap” between the two to determine profitability. GAP strategies can estimate overall lifetime costs for project alternatives, enabling EBS to advise the most appropriate triple bottom line design, renovation, or certification process.

LEED EBOM GAP Anlayses allow our clients to make informed decisions. Rather than simply listing potential points your building can qualify for, EBS’ “rack and stack” approach to assessments provides each credit, its requirements, both the hard and soft costs of pursuing those credits, and an all told cost figure for achieving LEED Certification at the various levels (i.e. Silver, Gold, etc.). This format provides the most transparent approach to a process (EBOM Certification) that is otherwise complicated to understand for novice audiences.EBS will provide:

  • List of credits your project can qualify for (with little or no changes)
  • Action List of necessary tasks to qualify under the LEED EBO&M criteria
  • Analysis of the soft & hard costs and description of the associated benefits
  • An all LEED AP staff of experts with experience on 100+ LEED projects
  • The ability to hire us for outside services such as ASHRAE 62.1 calculations or ASHRAE Level I/II Energy Audits

Furthermore, this analysis will include a price for retaining the services of Environmental Building Strategies for the LEED Project Management & Certification under LEED for Existing Building Operations & Maintenance 2009 criteria.NOTE: 100% of the costs of these studies will be credited if using our firm for the associated full scope of work (e.g. LEED Project Management & Certification) following the study results.For a new build project you can expect a similar format where our team will review project drawings, specs and timelines to analyze the project’s ability to qualify under various certification criteria. Contact Us for more information >>

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