Maximizing Comfort and Savings with a Commercial HVAC Replacement Program
About Our Client
Our client is a nationwide athletic attire retailer with more than 200 stores and more than 1,000 assets for heating and cooling its facilities. The company was exploring a commercial HVAC replacement program to proactively replace its HVAC units as part of a CapEx planning effort.
The Problem: Staying Ahead of Potential Breakdowns and Downtime
When commercial HVAC units break down and require replacement or major repairs, there is a significant cost to the organization and a lengthy lead time on repair components or new units. As a result, temperatures become uncomfortable for employees and customers, which can impact experiences and subsequently revenue. With a proactive commercial HVAC replacement program (executed before units break down), several things are achieved:
- Expensive repair costs are avoided
- Significant heating/cooling costs are avoided while new equipment is on order
- New HVAC assets produce energy efficiency savings
- Potential utility rebates can be pursued to further minimize costs
- Refrigerant/R-22 components are avoided with new HVAC technology
- New units foster new warranties for stores
- Landlords might share unit replacement costs as an tenant renewal incentive
- Learn more about the benefits of a proactive HVAC program
How a CapEx-Focused Commercial HVAC Replacement Program Works
- We provide the client with a detailed list of their entire HVAC assets, which is built through the CLS HVAC Preventative Maintenance Program.
- We identify the top 10–40 HVAC units for CapEx replacement. This number varies based upon the size of the client and the number of stores and HVAC assets.
- This top 10 asset list is based on several factors: 1) the age of the unit, 2) repair history, 3) environment of the site (e.g. high-volume store, heavy salt water area, etc.), and 4) prioritization of sites with just one HVAC unit running (a particularly high priority — if that unit goes down, there is no HVAC solution).
- The client reviews their lease information to determine “best fits” for CapEx replacement. We then survey the “best fits” to quote HVAC unit replacements, review electrical components, evaluate crane access, assess equipment condition, etc.
- The client reviews all quotes and leases and leverages landlord support in order to determine what makes sense for the budget and to move forward with “best fits” for the HVAC CapEx program.
- With everything finalized, our team orders the commercial HVAC replacement units, provides timelines to the client, and ultimately installs the new assets.
The Solution: Proactive Replacement to Avoid Future Problems
Taking a proactive approach and implementing replacements as part of a CapEx budget ensured that the retailer would be well prepared to deliver comfortable experiences for years to come while also mitigating downtime and breakdowns due to old assets.
- CLS identified and recommended the top 40 units for commercial HVAC replacement for this nationwide retail client.
- Upon reviewing quotes, lease terms, landlord support, and CapEx Budget, the client moved forward with 32 CapEx uint replacements across nine total stores.
- Despite longer lead times for HVAC equipment — given current market conditions — all 32 units were replaced before they broke down, fostering significant maintenance savings and preventing employee and customer discomfort.
The Result: Significant Maintenance Savings and Guaranteed Comfort
Thanks to this commercial HVAC replacement program, our retail client was able to realize some significant maintenance savings and ensure that their employees and customers would be well served as they worked and shopped in stores.
- Through new equipment, new warranties, energy efficiency savings, and voided repair costs, the client will save an estimated $125,000 in maintenance costs on these 32 assets — simply by replacing units proactively.
- The landlord’s support on unit replacement also fostered greater savings and return on investment for the client.
- No HVAC replacements required any change orders or additional costs. Four asset replacements even had reduced costs, as CLS quotes are presented as not-to-exceeds (NTEs) and replacements took less time than quoted.
Get Proactive with Your HVAC Maintenance Now
CLS Facility Services provides a complete portfolio of preventive maintenance solutions for organizations across multiple industries with anywhere from 50 to 400 locations. Our program-level approach, highly experienced team, technology and management strategy, and nationwide vendor network ensure that all of your most critical assets — from lighting and HVAC/R systems to signage, FLS, and plumbing — are covered 24/7/365.