Whether you are responsible for a new state-of-the-art building or a twenty-year-old one, maintenance is crucial to preserving the value of your investment. Imagine constantly dealing with unexpected equipment failures and tenant complaints. These issues not only lead to high repair costs but also frequent dissatisfaction among tenants, which can tarnish your reputation and affect your bottom line.
Unpredictable maintenance makes budgeting difficult and achieving tenant satisfaction much harder. Additionally, it can make your goal of achieving sustainability and reducing energy use and costs seem increasingly unattainable. What you need is a maintenance strategy that will help you anticipate and prevent issues before they spiral out of control.
Break down siloes for better facility management
One effective way of approaching these challenges is to combine an Objective-Based Asset and Maintenance Management strategy with predictive maintenance-driven activities. This combination transforms maintenance processes, boosting real estate valuations and helping you achieve goals such as improved tenant comfort and satisfaction, better building experiences, and improved brand perception through better sustainability performance.
Achieving these outcomes starts with implementing an Objective-Based Asset and Maintenance Management strategy. This increases collaboration across your different facility teams by ensuring everyone is working towards the same goal with the same information. Siloed teams often struggle with misaligned priorities and fragmented information. By embracing objective-based maintenance, you can increase collaboration and create a more harmonious and efficient work environment.
Typically, a maintenance manager is focused on immediate repairs and minimising downtime; the sustainability manager prioritises reducing energy consumption and costs; and the facility manager aims to enhance tenant comfort and experience. But, imagine this scenario. Due to misaligned priorities and fragmented information:
A maintenance manager needs to replace an HVAC system urgently to prevent operational disruptions and select a standard, low-cost model from a preferred provider.
A sustainability manager has identified an energy-efficient HVAC system that will significantly reduce energy consumption but hasn’t communicated this to the maintenance team.
A facility manager wants to ensure any new system improves air quality and comfort but hasn’t communicated this to the maintenance manager.
Aligning objectives and communication across these teams will result in a much better outcome. When all team members are working together with clear communication about organisational objectives, they can enhance the overall performance and value of your real estate assets.
Accelerate results with predictive maintenance
Implementing predictive maintenance-driven activities will improve your team’s performance and ability to meet shared objectives. Research shows that predictive maintenance can reduce maintenance costs by up to 30 percent and asset downtime by up to 45 percent. This proactive approach allows you to address potential issues before they become major problems, ensuring smoother operations and happier tenants.
Additional benefits of combining an objective-based asset and maintenance management strategy with predictive-driven activities include:
Enabling your facility manager to anticipate and better manage tenant comfort, security, and experience needs.
Enabling your sustainability manager to proactively communicate opportunities to reduce energy consumption and costs for better sustainability performance.
Enabling your maintenance manager to increase real estate asset return on investments, while lowering operational costs.
Having accurate, real-time data is a prerequisite for effective predictive maintenance. This is achieved through use of IoT-based connected platforms, which provide real-time data for more informed decision-making processes. Building managers and service providers can use IoT devices to collect data on factors such as energy consumption, equipment performance, and temperature to quickly identify and correct rising issues.
In the e-book ‘Facility Management and Sustainability: A Fundamental Alliance’, Planon and Schneider Electric find that the ability to align team objectives, predict future needs, and generate actionable insights allows for a more sustainable and strategic approach to maintenance and facility management. This leads to better-managed facilities, longer asset life cycles, reduced CAPEX and higher satisfaction among building occupants. Your facility and maintenance teams can transition from being seen as a cost centre to being recognised as true contributors of value for your organisation.
Secure the value of your real estate
Property owners must invest in strategic initiatives such as Objective-Based maintenance – the time to improve, secure, and protect the value of existing building stock is now.
In its 2024 CMMS MarketScape, analyst firm IDC finds that the integration of advanced IoT-based connected platforms for predictive maintenance is integral for the future of asset and maintenance management. These technologies, such as those provided by Planon, enable organisations to translate objectives into actions, driving significant improvements in operational efficiency, cost savings, and building performance.
Ultimately, the integration of these technologies and strategies creates a more cohesive and efficient approach to asset and maintenance management. This results in sustainably maintained facilities, higher stakeholder satisfaction, and stronger real estate valuations.
Global architecture, engineering and consultancy firm Ramboll is spotlighting the pivotal role of renovation in reducing carbon emissions, cutting costs, and meeting sustainability goals in its new Renovation and Transformation Assessment Guide. BRJ speaks to Huang Yu, Director, Buildings, Ramboll, to see how repurposing existing buildings is becoming the smart choice for property investors and owners.
As urbanisation accelerates and sustainability becomes a pressing concern, Ramboll’s newly launched Renovation and Transformation Assessment Guide emerges as a crucial tool for property owners and investors. With the built environment contributing significantly to global CO2 emissions and waste, the guide advocates for a shift from new construction to renovation and transformation. By focusing on regulatory, financial, and sustainability drivers, the guide helps stakeholders assess the business case for repurposing existing buildings, identifying risks, and uncovering opportunities.
The case for renovation is compelling: it not only curtails carbon emissions and operational costs but also aligns with Singapore’s Green Plan 2030, which aims for a greener, more resource-efficient built environment. Through a range of case studies, the guide demonstrates that renovation can be both environmentally and economically advantageous, challenging the conventional belief that new construction is always the better option. As cities grapple with space constraints and rising costs, transforming existing structures is proving to be a sustainable and strategic solution.
Building Review Journal (BRJ): What are the main benefits for property portfolio owners and investors in Singapore when prioritising renovation and transformation over new construction?
Huang Yu (HY): Renovating existing buildings not only reduces carbon emissions and waste compared to building new but can also be more cost effective and attractive to tenants. This combined with legislation demanding smarter construction resource management, impacts real estate portfolio owners and investors.
There are of course regulatory requirements when it comes to heritage buildings, such as the unique and charming Singapore shophouses, which are managed under the Heritage Conservation Act by the Urban Redevelopment Authority (URA) and Building & Construction Authority (BCA). The ability to preserve them while also transforming them is an important way to conserve this architecture that is representative of Singaporean culture.
Sustainability is another benefit. Upgrading existing buildings with greener features to achieve greater efficiency in operation is key to realising BCA’s ambition to make 80 percent of Singapore’s buildings green by 2030. This presents an ambitious backdrop to encourage the renovation and transformation of building assets to achieve greater sustainability performance.
BRJ: How does the cost-effectiveness of renovation compare to new construction?
HY: Using lifecycle analyses and lifecycle cost analyses, Ramboll experts performed a comprehensive assessment of 16 cases ranging from family homes and terraced houses to tower blocks, commercial buildings and public buildings. The buildings also represent a wide range of building functions, choice of materials and locations. The main findings were that:
Renovation is both greener and more cost-effective than new-builds
Carbon emission in new construction depends on the materials used
The level of renovation determines the extent to which carbon impacts from operational energy can be reduced
Carbon impacts occur at different life cycle stages for new and mature buildings.
All 16 cases in this analysis show that renovation is advantageous both financially and in terms of climate impact. Whole lifecycle calculations of the scenarios reveal that in five of the cases, it will be more than twice as expensive to build new than to carry out extensive renovations over 50 years. This goes against the common assumption that it is not worthwhile to preserve and renovate buildings because they will be more expensive to operate.
In the realm of Singaporean projects, Ramboll has effectively executed transformation projects, including substantial structural modifications to five-star hotels and top-tier office buildings. Incorporating fresh usable space via lightweight construction methods, which leverage existing foundation systems, not only expedited construction timelines but also yielded substantial cost reductions.
BRJ: How are rising construction costs influencing the shift towards renovation and transformation in Singapore?
HY: There is no shortage of funding for infrastructure and built environment projects. The scrutiny is more around bankable projects. Investors are increasingly looking at the bankability of projects through multi-dimensional lenses, adding environmental, social and reputational issues to the traditional financial aspect. Renovation and transformation present opportunities to meet these requirements.
BRJ: Can you provide examples of projects where renovation has proven to be more environmentally sustainable than building anew?
HY: A project that most Singaporeans would be familiar with is the five-star Capella resort, which was originally constructed in the 1880s and used as an army barracks during World War II.
Following extensive restoration work designed by Foster + Partners, the resort was ranked as the top hotel in Singapore in Travel & Leisure’s World Best Awards 2023. Capella’s vision was to preserve the integrity of the original structure while integrating new elements. Most components were prefabricated offsite and tailored to fit seamlessly with existing structures, meaning that damage or modifications to the original structures were significantly reduced.
To construct the extension, an open-sided excavation was made behind the legacy structure where Ramboll incorporated one of the first permanent passive soil nail retaining systems in Singapore. Key to the functional viability of the scheme was the seamless integration of the old and new. To achieve this, structures were set out in such a way that allowed hotel guests to effortlessly move from one building and back without traversing different spaces.
The result was a heritage colonial building with a curvilinear extension successfully built within native vegetation that exemplifies Ramboll’s fusion engineering approach to rigorous and complex developments. For its considered design and successful implementation, the Capella Resort was a winning recipient at the URA Architectural Heritage Awards.
BRJ: Are there specific regulatory challenges that property owners face when considering renovation projects?
HY: There are no specific regulatory challenges when it comes to renovation projects. Initially, all buildings must be approached with respect, followed by a review process to pinpoint any potential engineering hurdles in meeting the latest prevailing codes and practices. Architects and engineers must collaborate to address these challenges, ensuring that the final proposal complies with local building authorities’ regulations and is suitable for use.
BRJ: How does prioritising renovation over new construction contribute to Singapore’s sustainability goals, particularly in reducing carbon emissions and waste?
HY: Singapore has an ambitious Green Plan. The Green Plan 2030 is a whole-of-nation movement to advance Singapore’s national agenda on sustainable development. The Green Plan charts ambitious and concrete targets over the next 10 years, strengthening Singapore’s commitments under the UN’s 2030 Sustainable Development Agenda and Paris Agreement, and positioning us to achieve our long-term net zero emissions aspiration by 2050. Prioritising renovation can add significant value to this plan.
For example, CO2 emissions from demolishing and building a new replacement building of the same size are on average around 35 percent greater than if a significant renovation of the building is carried out instead.
Transformation also taps into the DNA of buildings and urban areas. It informs the architectural approach and serves to preserve and enhance the heritage and cultural fabric that define a building and surrounding communities. In this way, transformation also makes an important contribution to social sustainability and Singapore’s shophouse culture.
BRJ: What role do green building certifications play in this shift?
HY: Certifications and advocacy on behalf of organisations like the Singapore Green Building Council (SGBC) are very important in educating our industry on the benefits of renovation. Aligned with the World Green Building Council’s vision of green buildings for everyone, everywhere, the Singapore Green Building Council aims to make the spaces we live, work and play in healthier, more sustainable, and more resource-efficient.
Ramboll is therefore delighted to have recently been certified by the SGBC for the provision of Environmental Sustainability Services at the highest Level 1 – Building projects with international stakeholders that seek to attain ambitious Green Mark ratings. This reflects our commitment to innovation in sustainable building design, including renovation projects.
These types of projects can dramatically reduce carbon emissions for our clients through circular and regenerative design. We look forward to continuing our journey towards building a greener and more sustainable future with the SGBC.
BRJ: What is the current state of the renovation industry in Singapore, and how has it evolved over recent years?
HY: Renovations traditionally focus on structural alterations in landed houses, shophouses and some conservation buildings. However, there’s a rising trend towards more intricate projects involving structural modifications and expansions in existing buildings, including high-rise. This trend is particularly notable in downtown areas where buildings already have deep foundations and basements.
BRJ: Can you provide an overview of Ramboll’s Renovation and Transformation Assessment Guide?
HY:Ramboll’s Renovation Assessment Guide is a practical handbook to help property portfolio owners and investors assess the business case for renovation. It also provides insights on how to mitigate risk and maximise rewards when renovating a building. To reach a more sustainable future, we must question the need for new construction, especially where existing properties can be repurposed. If planned and managed correctly, repurposed property assets can become attractive to tenants, more climate-resilient, and fit for multiple future uses.
For business case assessment, this guide centres around three key focus areas in the early planning stages of property renovation. Firstly, looking at the regulatory, financial and sustainability drivers, secondly, identifying and mitigating potential reconstruction, financial, and climate risks, and thirdly, assessing renovation opportunities and constraints to realise their full potential.
BRJ: Were there particular trends, client demands, or market needs that drove the creation of this guide?
HY: We can’t forget the megatrend of urbanisation, where 75 percent of the world’s population will be living in urban areas by 2050. In Asia alone, we are looking at 1.2 billion people who will be migrating to urban areas over the coming 25 years. The need for housing, infrastructure and buildings is immense.
In the meantime, there is the need to decarbonise our built environment. The built environment is responsible for 40 percent of global CO2 emissions, 33 percent of global waste, and nearly 50 percent of all extracted materials. Prioritising renovation and transformation over building new plays a vital role in decarbonising the construction sector and it is gaining momentum. The business case for renovation is clear – the time is now to respect, review and renew.
BRJ: How is the commercial property sector responding to this transformation?
HY: With commercial buildings, we see a clear trend towards organisations undertaking deep renovations of their existing offices. This is a win-win where they retain the benefit of the office being in an accessible and appealing location, whilst also optimising interior spaces, increasing energy efficiency, and creating a modern inspiring work environment. This in turn helps organisations attract and retain talent and typically reduces carbon emissions by 50 percent to 80 percent compared to new builds.
BRJ: What unique challenges do property owners and developers face when undertaking renovation projects in Singapore and how do they differ from those in other major global cities?
HY: I think one unique challenge for Singapore is the scale of the buildings, from high-rise buildings to large-scale developments, which brings an additional layer of complexity for engineers and designers. However, the impact of these large-scale buildings is worth the challenge. Singapore has its unique challenges as a city-state, such as land constraints, labour shortage and cost, which also presents itself an opportunity for innovation and ingenuity. I see opportunities for modular construction methods and Multi-trade Integrated MEP (MiMEP), which allows us to flexibly adapt and future-proof the assets.
BRJ: What future trends do you foresee in the renovation industry in Singapore, and how do you think policies will adapt to support these trends?
HY: When we know that the carbon savings from transformation initiatives are so large, as a minimum, we as advisors need to introduce a code of conduct that insists that we steer clients towards transformation. This means that we need to get better at recognising the economic, environmental, and social value of the assets they already have.
In my opinion, rapid large-scale decarbonisation calls for a significant decrease in demolition and new common regulations to support this. We already see protections in place for cultural buildings, but this needs to be extended to all buildings – especially those that contain large amounts of embodied carbon.
BRJ: What are the biggest challenges and risks for property owners and investors to maximize the benefits of renovation?
HY: Investors and developers must identify and manage risks from the very earliest stages of a transformation project before making major investments. This way they can ensure their business case stacks up and mitigate unexpected costs and delays.
Building plans from older buildings may be missing or incomplete, which creates uncertainty around the composition of the building. The condition, toxicity, and flammability of building materials may also be unknown and vary significantly depending on the type of building and when it was constructed. Conducting thorough early-stage architectural and engineering assessments, including laboratory tests and condition surveys, helps identify and minimise these risks.
A key challenge with transformation projects is that we want to preserve as much of the load-bearing structure as possible since this is where the carbon savings are greatest. However, this may place constraints on how the space can be reconfigured. Feasibility studies and creative thinking are needed to identify the options that can maximise the full potential of a transformation project and minimise the risk of it becoming a stranded asset. We are also actively looking into how AI can play a role in this.
Digital tools can play an important role in informing early-phase decision-making and at Ramboll we have developed applications that generate thousands of iterations of the possible MEP and façade configurations to identify the most cost-effective and optimal option.
Singapore is forging ahead in AI and technology development, evident from the significant investments outlined in the recent Budget 2024 announcement. In the February Singapore Budget, substantial investments were unveiled to drive AI and technology initiatives. Over the next five years, the government aims to inject more than $1 billion into advancing multi-sector AI adoption, with a focus on nurturing talent and fostering industry growth.
Recognising AI’s transformative power emphasises the significance of human skill in the digital era. Moreover, Singapore is focusing on boosting its energy transition endeavours through a $5 billion investment. This move could alleviate financial constraints on clean energy initiatives, such as renewable energy generation and related infrastructure within industries like construction.
The focus on AI and technology presents a unique opportunity for the construction industry to undergo a significant transformation, and embracing these technological advancements will be essential for staying competitive in an increasingly digital landscape. AI-driven solutions are already allowing construction firms to optimise resource allocation, mitigate risks, ease bottlenecks, increase productivity and deliver projects more efficiently, ultimately driving greater value for stakeholders at all stages of a project’s lifecycle. At PlanRadar, we expect this trend of a digital-driven built environment to accelerate significantly in the coming months.
Closing the digital divide: How can companies sustainably adopt AI and smart building?
Bridging the digital divide necessitates a comprehensive strategy focusing on the accessibility and affordability of advanced digital tools. A promising approach involves offering tailored assistance and resources to smaller businesses in rural regions or developing nations, such as subsidised access to digital tools and extensive training initiatives to bolster technical skills in the workforce. By investing in educational and upskilling schemes, employees can gain the necessary technical prowess to effectively leverage smart technology.
The incorporation of AI and technology in any capacity should always enhance, not diminish, the role of human workers in the construction sector. PlanRadar understands that while machines excel at routine tasks and data handling, humans bring critical thinking, adaptability, and hands-on trade experience to the forefront. Additionally, human workers are essential for executive decision-making. Although automation and digital tools can streamline operations, it is crucial to leverage human creativity, expertise, and intuition for intricate problem-solving and decision-making processes. Through investment in training and upskilling initiatives, we can equip workers with the necessary digital literacy and technical skills to excel in an increasingly technology-driven landscape. This approach ensures that technology supplements, rather than replaces human capabilities.
By directly tackling these discrepancies, we can establish a fairer environment for digital integration within the construction sector across the ASEAN region.
Successfully integrating technology: Key ways to maximise industry incentives and funding
To maximise potential for government incentives and grants towards successful AI and digital technology adoption, construction companies in Singapore should consider the following strategies:
Stay informed: Regularly monitor updates and announcements from government agencies such as the Building and Construction Authority (BCA) and Enterprise Singapore to stay informed about available incentives and grants.
Alignment with government priorities: Align AI and digital technology adoption initiatives with the government’s priorities and strategic plans for the construction sector. This ensures that the company’s efforts are in line with national objectives, making it more likely to qualify for incentives and grants.
Participation in government programs: Actively participate in government-led programs and initiatives aimed at promoting AI and digital technology adoption in the construction industry. This could include joining pilot projects, industry collaborations, or innovation challenges organised by government agencies.
Collaborate with research institutions: Collaborate with research institutions, universities, or technology providers to develop innovative AI and digital solutions tailored to the needs of the construction industry. Government agencies often support collaborative research and development projects through funding and grants.
Invest in employee training and skills development: Invest in training and upskilling employees to ensure they have the necessary knowledge and skills to effectively implement and utilise AI and digital technologies in construction projects. Some government incentives may prioritise companies that demonstrate a commitment to workforce development.
Compliance and regulations: Ensure compliance with relevant regulations and standards related to AI and digital technology adoption in the construction sector. Companies that adhere to industry best practices and regulatory requirements are more likely to qualify for government incentives and grants.
By adopting these strategies, construction companies in Singapore can maximise their potential for government incentives and grants towards successful AI and digital technology adoption, thereby driving innovation and competitiveness in the industry.
The impact of the Singapore Budget 2024 on technology in the construction industry
We expect that the 2024 budget will likely prioritise the role of technology in construction as part of Singapore’s broader strategy to maintain global competitiveness. With grants available to support AI technology adoption across all sectors, including construction, there is an anticipation of a concentrated effort to encourage companies to embrace digital innovation. This could involve specific initiatives aimed at fostering the use of AI, IoT, and smart technology in construction projects, along with investments in digital infrastructure and workforce development.
At PlanRadar, we foresee that construction firms stand to gain significantly from the available grants for acquiring AI technology. These funding opportunities offer companies a chance to invest in state-of-the-art AI solutions that boost productivity, enhance safety protocols, and streamline operations for construction projects of any size or complexity.
By leveraging the growing global significance and potential of AI, construction firms in Singapore can improve resource management, mitigate risks, and increase operational efficiency and profitability. We trust that these grants will inspire companies to embrace AI advancements, accelerate their digital transformation, and push for a competitive edge in a dynamic market environment.
Article Contributed by Vitaly Berezka
Vitaly Berezka is Head of Sales across Central Asia, MENA and APAC for the construction and real estate software company PlanRadar.
With an engineering degree in construction, Vitaly also holds an executive degree in business administration. His experience in the real estate development and construction industry spans more
than 15 years. Since 2013, he has held management positions in international companies that provide innovative solutions to the construction and real estate industries.
Besides lecturing on digitalisation topics at universities, he is the author of scientific publications and the co-author of three books. Vitaly is a member of International Real Estate Federation (FIABCI).
In our exclusive interview with Lakshita Wijerathne, CEO of Eutech Cybernetic, we unravel the dynamic intersection of sustainability, technology, and real estate. Wijerathne, the driving force behind the transformative iviva platform, shares insights on navigating the urgent need for carbon reduction in the real estate sector. Join us as we explore how innovative technologies are reshaping buildings, reducing operational costs, and aligning the industry with global climate goals. This interview promises a concise yet illuminating glimpse into the strategies and innovations driving a sustainable future for the built environment.
1. In the context of the real estate sector’s commitment to reducing emissions, how does iviva contribute to the transformation of existing buildings to meet net-zero targets by 2030 and achieve carbon neutrality by 2050?
Buildings generate 39% of energy-related carbon emissions worldwide; 28% from the energy needed for operations, and the remaining 11% from their materials and construction, according to the International Code Council. When the high carbon emissions of new construction is viewed against the backdrop of the global imperative to combat climate change, demolishing old buildings and erecting new ones is not more sustainable.
Approximately 80% of today’s buildings are anticipated to remain in use in 2050. To enhance efficiency and meet net-zero objectives, there is a pressing need to transform these buildings into smart ones. According to a recent report, the smart building market is projected to grow more than fivefold from USD 103.91 billion in 2022 to USD 538.45 billion by 2030. The most effective approach to environmentally retrofitting older buildings involves implementing a cost-effective technological upgrade, outfitting them with smart devices.
The iviva platform empowers building owners, operators, and occupants to retrofit their buildings and workspaces cost effectively through a combination of information technology, operational technology, and Internet of Things (IoT) devices. For one, the utilisation of digital twin technologies allows for the simulation and prediction of building upgrades without interrupting real-time operations, allowing continued revenue and preventing costly errors in the implementation of upgrades.
Technologies that enable energy savings through smart cooling, ventilation, and lighting are only half the battle. Building users also have to make a conscious effort to use these smart systems to reduce their individual and organisational carbon footprints. Artificial intelligence and machine learning are used to provide all building stakeholders with insights into their energy usage, as well as the means to lessen it.
The same technology is also available to building owners and operators to enable intelligent predictive maintenance. Systems like air conditioning and lighting operate at peak efficiency for longer periods while reducing the number of maintenance activities.
2. Upgrading existing buildings for operational efficiency is a key focus. Could you share specific success stories where iviva has made a significant impact on reducing carbon footprints and operational costs simultaneously?
The Paya Lebar Quarter (PLQ), a Green Mark Platinum-rated mixed development by LendLease, uses its iviva-powered Open Building System Integration (OBSI) platform to connect all of the systems and equipment within its retail mall, three commercial towers, and three residential blocks.
Aside from integrating all of the development’s smart systems, the OBSI has a digital twin that allows building operators to conduct predictive maintenance. Instead of having routine maintenance activities which cost more and may come at times when it is not yet necessary, maintenance teams at PLQ only have to work on systems when necessary. This ensures the latter remains at peak energy efficiency while reducing operational costs.
3. As the commercial real estate market experiences structural changes, how do you see these shifts influencing decisions on constructing new buildings versus upgrading existing assets? What role does sustainability play in these decisions?
Sustainability has emerged as a critical consideration in business decisions, reflecting a broader trend towards environmental consciousness. This is especially true in Singapore where carbon emissions, though a minor fraction globally, are exceptionally high (about twice the global average at 12 tonnes annually) when viewed on a per capita basis.
While energy-efficient technologies have led to reductions in carbon emissions, the real estate sector also needs to reduce what is called “embodied carbon” or those that arise from the manufacturing, transportation, installation, maintenance, and disposal of building materials. This makes the replacement of existing buildings with new, more energy-efficient ones a non-option.
4. From an economic standpoint, how can sustainability initiatives, particularly those involving upgrades to existing buildings, be framed to attract investors and asset owners, considering the challenging landscape of valuations and rents in the current hybrid work environment?
While sustainability initiatives are often seen as a cost, they can also be framed as an opportunity to take advantage of growing demand from tenants for sustainable and energy-efficient buildings, as well as government policies that reward green real estate developments. Simultaneously, the same technologies that enable the cost-effective implementation of smart, energy-efficient systems can also be leveraged to improve operational efficiency and lower operational costs for building owners and operators.
One source of savings for building owners and operators is the reduction of energy consumption. The upfront costs of installing energy-efficient systems are more than offset by the long-term savings generated from them. Another source of savings is the reduction in scheduled maintenance activities through the implementation of intelligent preventive maintenance.
By cutting back on costs while improving their developments’ user experience, building owners and operators can improve the yields and valuations of their properties.
5. In the realm of greenwashing and mandatory sustainability reporting, how can the real estate sector genuinely differentiate itself by adopting technologies that not only meet compliance standards but go above and beyond in creating sustainable and efficient spaces?
Equipping buildings with smart technologies is only the first step in creating sustainable and efficient spaces. Building owners and operators need to concretely measure the impact these technologies have on their developments’ energy usage, carbon emissions, and other metrics of sustainability. Not only is this important for ensuring compliance with government regulations, but it also enables enterprises to maximise the impact of their sustainability initiatives.
Thus, the installation of smart systems should be complemented with a technology platform that integrates the latter under one pane. By having better data capture, consolidation, analytics, and visualisation, decision-makers can streamline their facilities management processes towards meeting their developments’ sustainability targets.
Data visualisation serves as the optimal management tool for people who manage buildings. It is important for the various stakeholders including the Chief Executive Officer, Chief Finance Officer, facility managers, and sales or marketing professionals, to possess the ability to customise and analyse specific data pertinent to their respective roles without incurring additional expenses. This quick and cost-effective dashboard customisation enables them to conveniently access the required data respectively.
6. Collaboration is key in addressing climate challenges. How can stakeholders in the built environment sector work together to amplify the impact of sustainability initiatives, and how does iviva facilitate such collaborative efforts?
To amplify the impact of sustainability initiatives, stakeholders such as owners, operators, tenants, and users must collaborate effectively. A crucial element in improving collaborative efforts is providing all stakeholders with the platform, tools, and know-how to participate.
iviva’s platform is designed with a low-code/no-code approach, enabling all individuals, from company leaders to facility management staff, to engage with it. Through this inclusive model, everyone has access to the data necessary for informed decision-making.
Moreover, iviva’s platform fosters a culture of sustainable behaviour among building users. The platform visually presents individual usage and its impact on energy consumption and carbon emissions. This visualisation enables users to understand the connection between their actions and environmental consequences. By making this connection transparent, iviva encourages building users to adopt sustainable practices.
The technologies needed by building owners and operators to achieve sustainability goals are readily available. But to put them together in a way that also enhances operational efficiency, reduces costs, and improves the bottom line requires the seamless integration of these individual technologies. The best way to achieve the seamless integration described above is through an open platform that can effortlessly connect with any smart building system while remaining accessible to those with minimal to no experience with coding.
AboutLakshita Wijerathne
With a 25-year career in the Software industry, Lakshita has extensive experience in the field of Supervisory Control and Data Acquisition (SCADA), design and development of generic communication modules, and possesses a detailed understanding of integration
mechanisms, controls, and protocols. He is a highly skilled technical professional with proficiency in programming in C, C++, Visual Basic, Object-oriented design and development of enterprise solutions, Project Management, Software design, development, Quality Control and Quality Assurance.
A few of his past and present projects include the design and development of a generic communication module for a vendor in the USA specialising in fire protection systems, managing deployment of a central control station for multiple building sites in Korea, implementation of integrated SCADA and facility management solutions for commercial buildings in Bahrain, Abu Dhabi, Dubai and Vietnam, and managing the deployment of a facility management solution for a smart precinct in Sydney, Australia.
He is passionate about the use of technology and AI infrastructure for smart building and smart facilities management to improve building performance, reliability, resilience, occupant productivity and health and wellbeing. After a successful 20+ year career within the Eutech group, Lakshita is, since April 2023, Eutech Cybernetics CEO.
Turner & Townsend’s August report for the Singapore Market Insight outlined that the country’s economy expanded by 1.3 percent in the first quarter of 2021 on a year-on-year basis, an improvement from the 2.4 percent contraction in the fourth quarter of 2020. The growth was driven primarily by the manufacturing, finance and insurance, and wholesale sectors.
The performance of Singapore’s construction sector, however, continues to be weighed down by declines in both public and private sector construction works. On a more positive note, although the construction sector contracted by 23.1 percent year-on-year, it showed gradual signs of improvement from preceding quarters.
Approximately SGD 5.7 billion worth of construction contracts were awarded in the first quarter of 2021, a marginal decline of 0.1 percent from the previous quarter. The report notes that the public sector is expected to lead most of the work demand for the remaining quarters of this year.
Construction output (certified progress payment), on the other hand, rose marginally by 5 percent compared to the fourth quarter of 2020, largely due to the resumption of more construction activities. However, border restrictions have slowed down onsite construction activities, which will impact construction output for the coming quarters.
Khoo Sze Boon, Managing Director – Singapore, Vietnam, and Philippines for Turner & Townsend comments: “Singapore’s construction market outlook is anticipated to remain uncertain in 2021. Although we could be seeing a gradual increase in terms of construction work demand (mainly driven by public sector projects), the overall market is still facing significant manpower shortages, supply chain constraints, and in particular escalating construction costs attributed to the current situation. There is also the need for the industry to further improve productivity to meet this growing demand.”
Download the latest Singapore Market Insight Report (August 2021) to see more economic data and insight, and to read about tender conditions in Singapore.
After a pandemic that swept the world had abated, the world experienced a massive era of growth – the Roaring 2020s. Now, a century later, the global construction industry needs to gear up for a new roaring decade.
The industry needs to change to meet the new opportunities and challenges ahead. At least initially, manpower and raw materials availability will remain constrained; clashing into pent up demand and governments wanting to spend on infrastructure.
Despite current pandemic uncertainties, BCI Forecaster in April 2021, projected a 21% increase in new construction for the year ahead in Malaysia, and 47% for the Philippines. In Hong Kong, the report noted that “government spending has been approved [and as a result] the annual total construction output will increase to around HK$300 billion (US$38.6 billion) in the coming years”. In May, the Singapore government passed a bill to raise S$90 billion (US$67.9 billion) in bonds to fund new infrastructure. The solution isn’t to work harder; the solution, now more than ever, is to work smarter and with greater efficiency.
A June 2020 McKinsey report, “The next normal in construction: How disruption is reshaping the world’s largest ecosystem”, saw that “digital technologies can enable better collaboration, greater control of the value chain, and a shift toward more data-driven decision making. These innovations will change the way companies approach operations, design, and construction as well as engage with partners. … Using digital tools can significantly improve on-site collaboration. And digital channels are spreading to construction, with the potential to transform interactions for buying and selling goods across the value chain.”
Nearly two-thirds of respondents for the report believe that the COVID-19 crisis will accelerate industry transformation, and half have already raised investment in line with the shifts. “The full transformation of the construction industry could take decades, but the process has already begun. Our survey shows that industry leaders largely agree that the shifts outlined in this report are likely to occur at scale within the next five to ten years and that the COVID-19 crisis will accelerate shifts.”
While these digital tools address specific needs well, they tend to operate as single-point solutions that silo their information within their own systems. This often results in disjointed systems which hinder collaboration and prevent companies from gaining a true, comprehensive picture of their projects and making the whole project management process more cumbersome.
What businesses need is a technology that is simple to use, scalable, and built for purpose – technology that operates more like a complete platform for project management. With centralised data, standardised processes and streamlined workflows, all-in-one solutions lead to enhanced communication and greater consistency between project teams and clients. Projects progress more efficiently, productivity dramatically improves, and costs are reduced.
Companies that have adopted such a solution include Ananda Development, based in Bangkok, Thailand. The company has been able to boost efficiency by 25% and has seen its market share surge from 5% in 2007 to 26% in 2019. “It’s little quality-of-life things that honestly make the difference. It’s an enhancement for our ecosystem and our partners. We provide this platform, and it enables them to work more effectively,” said Alan Landau, Head of Technology Innovation.
Visit https://proco.re/3oqKApf to find out more about how to digitise your construction projects, for the decade to come.
Grundfos, a leading pump and water solutions manufacturer,has launched a new service model in Thailand that can help local businesses cut energy consumption by more than one-third,achieving greater sustainability at a lower cost while supporting the country’s goal of reducing greenhouse gas emissions by at least 20% by 20301.
Grundfos Energy Earnings (GEE) is a new, shared energy saving programme where Grundfos absorbs the investment cost of replacing customers’ current equipment with new environmentally friendly solutions, as well as installation and ongoing maintenance. Under this new self-funding service model, Grundfos and customers will share the realised savings from GEE for five years.
Products offered through GEE include LS pumps, controllers and energy-efficient motors. Pumps account for 10% of global energy consumption. Switching to newer technology can have a significant positive impact. Advanced pump solutions, which can be used for various applications across diverse segments, are especially suitable for the hospitality industry where hotels, entertainment arenas and other facilities play a critical role in supporting the Thai economy.
Mr Lewis Brown, Grundfos Regional Service Business Developer, Asia Pacific Region
GEE can also help municipal electricity authorities reduce their energy consumption. Grundfos is dedicated to supporting Thai efforts to reduce energy consumption, in line with a growing domestic environmental movement where consumers and businesses are becoming increasingly concerned about how human activity is damaging the country’s natural and urban environments.
Mr Lewis Brown, Grundfos Regional Service Business Developer, Asia Pacific Region, said, “Sustainability is a very important part of Grundfos’ DNA. The pandemic this year has reaffirmed the importance of achieving our climate ambitions, as we are reminded of the impact human activities have on the environment. We are committed to helping our customers to reduce their water and energy consumption to limit their carbon footprint.”
He added: “At the same time, we aim to demonstrate that financial and environmental goals are not mutually exclusive. Our GEE model showcases the benefits of replacing energy-intensive equipment with our pioneering technology that can reduce both environmental and financial costs.”
Grundfos this year launched GEE with the Ramayana Water Park in Pattaya, replacing the existing pumps at Thailand’s largest water park, enabling it to reduce its energy consumption by 31%. The project will exceed 1,000,000 kWh in savings and 450 tonnes of CO2 emissions — about the same as permanently removing 170 cars off the road. Financial savings for a customer can reach up to 1.5million baht per year of cost savings.
“GEE has the potential to deliver real financial savings. Customers in the hospitality industry, who have been pressured by the Covid-19 pandemic,can benefit from developing greater resilience to help them overcome challenges caused by the pandemic while helping them on a path to a more sustainable future in the longer term. These savings will have a significant impact on our customers’ bottom line, as well as our commitment towards sustainability and the environment. We forecast to reach 30 Asia Pacific customers within the next five years,” said Mr Brown.
1.In the lead-up to the 2015 Paris Agreement, Thailand proposed its nationally determined contribution to reduce greenhouse gases by around 20 to 25% by 2030.
The Global Asset Performance Management Lead of AVEVA explains why planning and predictive maintenance sets the best foundation
Coronavirus (‘COVID-19’) continues to have a significant impact on all market sectors including the engineering, manufacturing and construction industry. According to Deloitte’s white paper on COVID-19’s impact on the engineering & construction sector, in the long-term, “construction companies across the board will have to contend with decreased demand as governments face rising deficits and residential and commercial projects are dampened by unemployment and low GDP growth.” 1
So, it comes as no surprise that many businesses are looking even closer at improving reliability, performance, safety and controlling costs while maximising value from investments already made.
Setting the Right Foundation with Project Planning
In all capital asset industries, there is a premium on safety, speed and quality of delivery, but construction projects are also characterised by very demanding schedules, global distribution of work, multiple contracts and a drive for seamless start-up and production. Often, this is enforced by strict contractual requirements, but it can also be determined by regional conditions. Late completion of one project can have a detrimental effect on reputations and future business. Together, these factors demand skilful planning and scheduling, and business agility. Complex projects require efficient planning tools to handle the information involved and to present it in ways that enable effective business management.
Any effective planning solution must provide all of the following key features:
Multiple levels of planning, from enterprise planning to work pack-based engineering deliverables and construction sequence planning
The ability for several planners simultaneously to develop and optimise schedules for individual aspects of the project
The ability to analyse and reuse plans from previous projects. Apart from saving time and effort, this can enable more competitive tendering and reduce project risk
Close integration with the construction management and materials systems to close the feedback loop, providing visibility of progress against plan and enabling timely and effective rescheduling where necessary.
Gaining a Competitive Advantage with Predictive Tools
Predictive Asset Analytics is a modern tool to help organisations gain the highest return on critical assets by supporting predictive maintenance programs with early warning detection of equipment issues ahead of existing operational alarms. Predictive Asset Analytics gives users the ability to quickly transform raw data into actionable insights to prevent equipment failure and make smart decisions that improve operations
Equipment agnostic, Predictive Asset Analytics can also be configured to monitor assets regardless of equipment type, vendor, or asset age without the need for manufacturer specific asset information. While existing machinery sensor data can be input into the software’s advanced modeling process and compared to real-time operating data to determine and alert upon subtle deviations from expected equipment behavior. This is advantageous for organizations because, once an issue has been identified, the software can assist in root cause analysis and provide fault diagnostics to help the user understand the reason and significance of the problem.
Staying at the Top of the Game
Demand for Asset Performance Management (‘APM’) software has increased significantly over the last five years in particular. Verdantix analysis found that global spending across all industries on APM software, content and related services reached US$2.3 billion in 2019.2
Technological advancements mean that Predictive Asset Analytics can now integrate with a wide variety of data historian solutions, control and monitoring systems and can be deployed on-premise or in the cloud. This effectively means that organisations can monitor a single asset, a specific plant or hundreds of remote assets across multiple sites from a single point. Unscheduled downtime can be reduced through personnel receiving early warning notifications of developing issues.
Instead of shutting down equipment immediately, the situation can be assessed for more convenient outcomes. Maintenance costs can also be reduced through better planning; parts can be ordered and shipped without rush and equipment can continue running. Other benefits include increased asset utilization and life, as well as identifying underperforming assets.
When the world and construction projects return to normality, inevitably there will be questions about schedule delays and there will also be a scramble for labour, materials and equipment. Organisations can stay ahead of the curve by taking affirmative action now in order to keep existing projects and processes on track.
References:
1. Deloitte: COVID-19’s impact on the engineering & construction sector 2. Verdantix 2020 Green Quadrant for Asset Performance Management (APM) Solutions Report here.
