How to work out where buildings are wasting cost

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Managing operational costs is crucial for maintaining financial stability and achieving long-term success. Buildings, in particular, can be significant costs, often harbouring hidden inefficiencies that drain resources and inflate expenses. Understanding where and how buildings are wasting money is the first step towards implementing effective cost-saving strategies and optimising overall performance.

Importance of identifying cost wastage

Recognising where buildings are wasting money is essential for several reasons:

  • Operational efficiency: Identifying and addressing inefficiencies streamline operations, reduce waste, and maximise resource use.
  • Financial sustainability: Cost savings contribute to improved financial performance and allow for strategic reinvestment in other areas of the business.
  • Environmental impact: Reducing energy consumption and waste minimisation align with sustainability goals.

Ignoring these inefficiencies can lead to a snowball effect, where small leaks and oversights accumulate into substantial financial burdens and hold back progress on financial, operational and sustainability goals.

Recognising wasteful practices

Several key areas within buildings and estates often contribute to cost wastage. These range from simple, easily detectable issues, such as assets or plant equipment not working to specification or performing irregularly, to more complex interactions between humans and the building.

The rise of hybrid working, for example, means that office space use should be closely aligned with the operation of utilities and assets that service it. 

Similarly, meeting rooms should be optimised based on the number of people using them and the required facilities. 

Additionally, with health and wellness becoming a priority, aspects like air quality, temperature, humidity, and lighting should be carefully managed.

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Studies suggest that energy costs can be reduced by up to 40% with the right tools to monitor, measure and manage buildings. For example, by installing building management software and sensors on radiators, windows, and doors, six military accommodation sites achieved savings of over £500,000 in six months. 

Here’s a closer look at some common culprits:

  • Energy inefficiency: Outdated HVAC systems, poor insulation, and inefficient lighting can significantly increase energy consumption and costs.
  • Resource wastage: Water leaks, inefficient appliances, and improper waste management practices contribute to unnecessary resource consumption and disposal expenses.
  • Spaces with low occupancy: Poor space planning and inefficient use of available areas can lead to wasted square footage and inflated costs associated with heating, cooling, and maintenance.
  • Manual processes: Relying on manual processes for tasks, such as data collection, reporting, and maintenance scheduling, can be time-consuming, prone to errors, and ultimately costly.

Available solutions

Fortunately, several solutions can help businesses identify and address cost wastage within buildings:

  • Energy management systems: These provide real-time data on energy consumption, enabling businesses to identify inefficiencies and implement targeted energy-saving strategies.
  • Building automation systems: Automating tasks, such as lighting, HVAC, and security, can optimise resource use and reduce operational costs.
  • Predictive analytics platforms: These use data to forecast maintenance needs and prevent equipment failures, minimising downtime and repair costs.

Equans Digital: Your partner in cost-effective building management

The Equans Digital SMARTR Cloud platform offers a comprehensive solution for identifying and addressing cost wastage within buildings and estates. With features such as real-time data analytics, predictive maintenance, and automated controls, SMARTR provides a holistic view of building performance and offers stakeholders actionable insights. 

By seamlessly integrating it with your existing infrastructure, SMARTR helps you to optimise resource use, reduce operational expenses, and achieve greater sustainability. This integration allows data to be used across all levels, from engineers operating core systems to boards managing budgets and compliance, ensuring a unified understanding of building performance.

Benefits for businesses and building professionals

SMARTR Cloud delivers a wide range of advantages:

  • Proactive cost management: Identify and address potential issues before they escalate into costly problems.
  • Optimised resource use: Reduce energy consumption, water use, and waste generation.
  • Enhanced operational efficiency: Streamline processes and improve overall building performance.
  • Data-driven decision-making: Make informed decisions based on real-time data and insights.

Identifying and addressing cost wastage within buildings is crucial for achieving operational efficiency, financial sustainability, and environmental responsibility. By embracing technological solutions like SMARTR, businesses can gain control over their building’s performance, reduce expenses, and contribute to a greener future.

Explore the SMARTR Cloud platform today and discover how it can optimise resource use, reduce operational expenses, and enhance sustainability.

How SMARTR helps buildings to reduce costs

Cost savings can be delivered by gaining control of cost wastage, reducing energy consumption, introducing automation and improving efficiencies. Equans Digital’s SMARTR Cloud platform wraps all of this into one intelligent solution, offering a comprehensive solution for building managers and professionals involved in building management to control.

Learn more about how we can help you
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