The bane for any executive faced with a major capital investment is the years-later postmortem, “If I only knew then what I know now.” But imagine if you could actually know the long-term results of a construction investment before you ever commit a single dollar, including down-the-road cost ramifications and projected ROI. Today you can with SmartView™, the new, proprietary cost-analysis tool developed exclusively by Butler Manufacturing™.
SmartView by Butler can accurately measure and evaluate building cost drivers – from initial design approaches and process to lighting, HVAC and lifecycle maintenance. The proprietary algorithms of SmartView pull regional data using Department of Energy (DOE) information regarding utility and escalation rates along with tested values of Butler® building assemblies.
The proportional significance of each of these cost-saving drivers depends on many different dynamics and considerations. Never the less, from an owner’s perspective, it is important to estimate the corresponding operation and maintenance costs of each alternative for a proposed facility consistent with your investment objectives. It’s the most reliable way to gauge your best construction strategy.
SmartView analyzes the whole building – the lifetime operating, energy and maintenance expenses, plus offsets for applicable federal tax incentives and energy rebates.
This concept, known as Total Cost of Ownership (TCO), is certainly not new. Many businesses, likely including your own, have relied on this type of measurement for years, especially related to investments in technology, fleets or heavy equipment. But it has not been the norm in building construction. There were too many variables to consider, and it was too costly and time-consuming to crunch the numbers. However, the SmartView building energy-modeling tool is the result of years of construction industry research and technical innovation.
SmartView by Butler is a powerful decision tool.
This innovative, highly robust cost-analysis program can show you in clear, reliable numbers what it would take to make your investment in a new building worthwhile. The input data is based on your own selected building criteria as it pertains to your explicit project parameters. This results in real dollar amounts with the cost of capital factored in.
After discussing your team’s construction goals and criteria with a Butler team member, a simulation can be run to demonstrate the comparative values for different building assemblies and build-outs. These include wall and roof systems, types of materials and insulation, natural day lighting and artificial lighting options with controls, as well as energy-efficient HVAC systems, and more. This enables your project management team to make the most informed, calculated decision by quantifying TCO savings and returns.
Applying the 90-10 rule of construction
The importance of the 90-10 rule is the fact that a building’s lifetime operating, maintenance and replacement costs, on average, account for 90% of total costs. The remaining 10% is the cost of construction. Yet, construction bids are most often the primary, if not the only, basis for construction investments.