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Features August
2009
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Heated
Times For Facilities Managers Over Air Conditioning Units
By Beacons Business Interiors
A
facilities management firm is warning that UK businesses
have only six months left to prepare for government legislation
on reducing its carbon emissions.
Hundreds of facilities managers across the UK could find
themselves facing fines significant fines if they fail to
wake up to changes in legislation surrounding air conditioning
units.
Leading facilities support company Beacons Business Interiors
(Bbi) is warning that businesses could easily find themselves
on the wrong side of the law if they do nothing to update
outdated air conditioning units which use ozone-depleting
gas HCFC R22.
Britain has signed up to the Kyoto Protocol which dictates
that, by 2010, HCFC gases are to be phased out and replaced
with non-ozone depleting refrigerants, such as R410A. However,
an alarming number of companies are failing to act.
Paul Carey, mechanical and electrical director at Bbi, said:
“The clock is definitely ticking for businesses to
do something about their air conditioning units.
“Businesses need to act now or face huge fines, administered
by DEFRA (Department for Environment, Food and Rural Affairs)
through the Environment Agency, who may well be looking
to make examples out of businesses to act as a deterrent
for others.
“The good news is that large, blue-chip organisations
seem to be employing mechanical and electrical specialists
to ensure they meet the fast-approaching deadline.
“However, the bad news is that many small and medium
sized companies and organisations remain unaware that their
systems contain HCFCs.
“There seems to be a lot of confusion in the market
place and many facilities managers seem blissfully unaware
that they themselves – as well as their companies
– are liable if they are found to fall foul of the
law.”
In addition to the potential fines, the longer companies
put off changing their air conditioning units, the more
expensive the job will become as demand could outstrip supply.
Paul Carey continued: “A breakdown, or leak in an
existing air conditioning system may shortly mean that the
equipment cannot be legally repaired, potentially resulting
in an un-planned major expenditure.
“And as the deadline approaches, and more organisations
wake up to the issue, demand for equipment will far exceed
supply. This means that that new equipment costs will rocket
in price and engineering resource to implement the change
will become scarce.
“Organisations who do not implement a planned phase-out
very quickly could find themselves paying premium prices
as the deadline approaches.”
As well as being more environmentally-friendly and a fast
approaching legislative requirement, replacing the air conditioning
unit can also bring direct cost benefits to businesses.
Paul Carey said: “Air conditioning in a building can
amount to as much as a third of the building’s annual
energy cost, and older, less technically advanced units
can use more energy and cost more to operate. We estimate
that new systems are 40-50% more energy efficient than outdated
units and the energy saving made will justify the cost of
replacement in just 12-18 months.”
Bbi is assisting businesses to develop a cost effective
plan to bring them into compliance. This involves undertaking
surveys and preparing a costed proposal for the upgrade,
along with the energy cost savings.
Paul Carey concluded: “We’re contacting more
than 500 businesses to see if we can help them to plan and
implement the upgrade.
“Where older air conditioning systems have a business
critical application, such as within computer rooms, it’s
important to plan the update to avoid a loss of service
resulting from a breakdown that can’t be legally repaired.”
Making
property taxation rules work for you
By Alun Oliver, Managing Director E3 Consulting
Project
teams working on building design and installation can unlock
significant hidden value from capital allowances and other
property taxation relief - but they should tread carefully,
says Alun Oliver.
Investors, developers and their FM partners can enhance
shareholder value in a property portfolio by an astute approach
to current tax developments.
Detailed attention to cost issues, design and the way land
or property is acquired and disposed of can all make a significant
difference to tax liability and therefore the long-term
financial viability of property projects.
Changes brought in under the Finance Act 2009 have increased
the scope to claim tax relief on construction and refurbishment
as long as action is taken at the right time in the right
way. Much focus is on the sustainability, regeneration and
environmental agendas.
Project managers with commercial responsibilities should
at least be aware of the labyrinth of allowances, exemptions
and reliefs even though it is advisable at all times to
engage a property taxation specialist before a decision
is made.
There are five key developments that could impact on facilities,
building and estate managers and their clients:
(1) Enhanced Capital Allowances;
(2) changes to Land Remediation Tax Relief (LRTR);
(3) Plant and Machinery Allowance (PMA) changes;
(4) a new category of Integral Feature Allowances; and
(5) the phasing out of Industrial Buildings Allowance (IBA).
Enhanced Capital Allowances
Tax policy has increasingly encouraged investment in energy
efficient commercial buildings - the so-called green wash
- so it is sensible to consider and factor in the potential
tax savings from the outset of a project.
While capital allowances themselves have been around since
2001, the government has again extended the range of assets
covered by the ‘Enhanced Capital Allowances’
rules under the Finance Bill 2009. They give 100% first-year
tax relief for certain energy efficient or water conservation
assets.
There are complex rules regarding qualifying assets but
the lists include Combined Heat and Power, solar heaters,
rainwater harvesting equipment and waste water recovery
and re-use systems. For the full lists, visit www.eca.gov.uk.
Land remediation
LRTR, despite being available since 11 May 2001, is still
not widely understood yet it is a hugely valuable tax break
on decontamination costs. LRTR can provide tax relief at
up to 150% of the costs incurred in cleaning up brownfield
sites, although the rate is less for property traders than
for investors.
LRTR has now been extended into ‘remediation of derelict
land’ too, for long term derelict sites. The aim is
to minimise pressure on the greenbelt while improving the
economic viability of regeneration projects. Expenditure
from 1 April 2009 will qualify following enactment of the
Finance Act 2009.
So far, so good. However, in reforming LRTR, HM Revenue
& Customs has also significantly tightened the wording
of the specific tax relief definition that applies from
1 April 2009.
Consequently careful investigation and project planning
will be required for tax-paying companies to truly optimise
their tax savings under the new rules.
Plant and machinery tax changes
In this year’s Budget, the Chancellor doubled the
rate of capital allowances for plant and machinery –
a welcome boost for those undertaking current projects in
the fiscal year to 31 March 2010.
However, this is a very short period for planning investment
spend and it came only a year after most first-year allowances
were scrapped, so many businesses will have considered the
avenue closed and may not be able to respond quickly enough
let alone obtain planning or funding.
If it is possible to claim, tax payers will get relief at
40% in the first year, before the rate reverts to 20% per
annum on a reducing balance basis thereafter.
It is important to remember that plant and machinery allowances
only represent 20-45% of all the qualifying expenditure.
Integral Features
Integral Feature Allowances, introduced in April 2008, are
a further category that may yield surprising results for
those not familiar with property taxation.
These allowances give relief at 10% p.a. and include some
assets that would traditionally have been considered as
‘plant and machinery’.
In addition, integral features include active façades,
external solar shading and any plenum floor or ceiling in
a heating, cooling and ventilation system.
The extension of allowances for integral features is to
be welcomed but it does mean that project teams ought to
be more aware. Clients with intensive business requirements
for these assets, such as those in the leisure and hospitality
sector, could be adversely affected by transferring to the
10% rate of allowance.
Amid the small print, expenditure to replace an integral
feature, if amounting to 50% or more of the total in any
given 12 months, is no longer eligible as a revenue deduction.
The tax treatment of thermal insulation should also be factored
in. Previously this was only given relief when added to
industrial buildings. Now there is a 10% allowance available
against all installations to existing buildings used for
a qualifying purpose.
IBA changes
The phasing out of Industrial Building Allowances (IBAs)
is another issue that may be significant for investors,
developers and FM clients.
The allowance is due to disappear altogether by April 2011,
denying relief to any tax payer who built their industrial
premises, hotel or car dealerships after March 1986.
The younger the facility the more significant the loss of
tax relief will be to trading activity. The removal of these
valuable tax allowances should be factored into all project
appraisals past and present. In particular, those involved
with project finance may wish to review past project models
to ensure funding covenants and cash flows are still sustainable
within the new tax regime.
HM Revenue & Customs has recently confirmed to businesses
that they cannot switch from one capital allowance to another
outside ‘normal tax submission and compliance’
timeframes.
In other words, tax payers cannot use plant and machinery
allowances as a substitute where previously they had used
IBAs, unless they amend their claim within this established
tax window.
This is likely to be a major stumbling block affecting tax-payers
with industrial, hotel, car dealership or agricultural assets.
There may still be scope for those who have submitted claims
in the past two to three years to optimise their claims,
depending on their precise circumstances, but they must
act quickly.
These are challenging times in the land and property market
but amid the complexity of taxation rules there are lots
of positive mechanisms that can ensure projects stay on
track.
Whether you are considering fit-out, refurbishment, new
acquisition or even a disposal, having the right advice
at the right stage can help you close funding gaps, kickstart
projects stalled due to funding issues and avoid expensive
mistakes.
Total
solutions for commercial FM
By John Hargreaves, Powerminster Gleeson
Facilities Management in the commercial sector is now an
established and viable route as building owners and managers
look to outsource non-core activities. Consequently, established
FM providers are now offering a portfolio of services to
meet these demands. John Hargreaves of Powerminster Gleeson
Services reports
“An increasing number of companies are utilising the
services of facilities management providers as a means of
achieving a well run, cost effective and user-friendly building.
As environmental legislation continues to tighten, many
are also turning to service providers for help and advice
on achieving greater levels of sustainability. The role
of FM now has a broader spectrum than ever before. Customers’
specific requirements are now supplemented with a list of
compliance issues and in particular with a stronger awareness
and a definite focus on energy efficiency. This can involve
service and maintenance of existing equipment, installing
new appliances, as well as introducing renewable technology.
In this new era, facilities management is an essential component
to a business’ strategy and its impact substantial.
Executed correctly, owners and managers can create buildings
that are more efficient, user-friendly and desirable to
existing and new occupants, whilst also releasing additional
time to be more productive in their own business
Regulations
No longer is a clean and tidy office enough for businesses,
especially when considering government regulations. From
October 2008, all non-domestic buildings on construction,
sale and rent will require a Non-Domestic Energy Performance
Certificate (NDEPC) and a Recommendation Report (RR). A
building that receives a poor energy rating in this assessment
could detract from the value of the asset as potential buyers
and investors have visibility of the running costs.
There are several elements to a building that influence
energy performance and many of these can be upgraded and
maintained by selecting the right facilities management
providers. This includes assessing lighting, Mechanical
& Electrical (M&E) equipment, heating and air-conditioning,
which can all have a direct influence on a business. By
outsourcing the maintenance of these building elements,
a company can focus on its ‘primary objective’,
as well as saving time and money.
In addition, the recent changes to Building Regulations’
Part L with regards to all new non-domestic buildings also
highlights the need for an FM contractor to play a leading
role in the management of commercial buildings. The changes
involve a 25 per cent reduction in carbon emissions by 2010
and a further reduction by 2013. This is a highly significant
amount and by effectively managing elements such as lighting,
electrics, heating, water and air-conditioning, a building
can perform to its original design.
Many FM providers are providing new services to meet these
government regulations, including micro-renewables. We have
highly trained engineers proficient in installing and maintaining
ground and air-source heat pumps, which is a growing consideration
for developers and current building managers who are looking
into green technology.
Facilities management is in the limelight more than ever
and providers need to constantly progress and diversify
their services to provide solutions for the specific challenges
posed by commercial buildings.
Services
Facilities management companies should offer a variety of
planned and reactive services, covering buildings and grounds
maintenance. This is not only to meet legislation, but the
way a building is managed and maintained can also affect
employee productivity, a business’ image and health
and safety criteria. All of these are crucial considerations
and highlight the need for a professional and enlightened
approach to facilities management.
For instance, it is essential that Heating, Ventilation
and Air Conditioning (HVAC) Systems are fully compliant,
especially where CFCs are concerned, which when released
into the atmosphere can cause ozone layer depletion. In
warm summer months, a building needs to have the adequate
levels of clean, fresh air, which often requires energy
efficient passive ventilations systems rather than air-conditioning.
The method of ventilation has a direct influence on staff
productivity and comfort, so it is essential that these
appliances are well maintained.
Having an FM provider that offers a 24/7, 365 days-a-year
emergency call-out service will help achieve this. It also
means that if any malfunctions occur with cooling equipment,
an engineer can be sent out immediately in order to reduce
the impact it has on the business.
This leads onto the importance of effective heating maintenance
for an office during winter. Unlike homes, offices have
many more windows and doors, which allows heat to escape.
Heating needs to be well controlled throughout the building
and kept within pre-set temperatures. Simply installing
thermostats on radiators can help prevent an office overheating
and wasting energy. The FM provider can ensure that heating
appliances are running efficiently at all times, with the
consequence that heating costs are reduced
Another element that needs to be considered is grounds maintenance.
Many businesses have land that needs to be maintained in
order to enhance the professional image that the business
is trying to create. Well maintained and aesthetically pleasing
exterior grounds creates the right first impression with
customers. We offer a range of bespoke Estate Management
services, which include leaf clearing, grass cutting, painting
and litter picking. Outsourcing of grounds maintenance to
an FM provider is an effective solution for businesses that
are looking for a complete service.
And not forgetting communal areas too. CCTV maintenance,
fire alarm and legionella testing are all crucial from a
security and health and safety perspective. This highlights
the compliance side of FM and how it is required that these
appliances are regularly checked.
The role of the FM provider is now key as businesses need
to ensure they retain their professional image and have
buildings that are operating to optimum efficiency and within
the law. Outsourcing a building’s external and internal
FM services is now no longer a decision of shall we or shall
we not, it is now purely a decision of who to choose.”
LED
installation for Somerset House
A
massive Anolis architectural LED lighting installation has
been completed by A.C. Special Projects Ltd. at London's
iconic Somerset House venue. This was designed by Patrick
Woodroffe, who was commissioned by Somerset House's director
Gwyn Miles.
Woodroffe's brief was to transform the night time ambience
of the Edmond J Safra Fountain Court - the hub of the spectacular
neoclassical building - with a classic warm white illumination
on the facades. Additionally, utilising RGBA fixtures, Woodroffe
introduced the potential to bathe the buildings in a rich
medley of colours, adding a theatrical dimension for corporate
and themed events.
Somerset House hosts a wide variety of special events and
a lively programme of public entertainment throughout the
year - including live music concerts, ice skating, presentations,
product launches and parties.
A key requirement was for the lighting scheme to be environmentally
sustainable and involve low power and maintenance, so LED
was the obvious choice. Out of the vast array of LED products
available on the market, they specifically sought high quality,
well engineered units that would underline the cost efficiency
of using long life LED lightsources.
Once the contract for the supply and installation was awarded,
the team at A.C. Special Projects approached Anolis to help
achieve the very specific technical and aesthetic qualities
that this LED lighting scheme required. This is achieved
using a mix of custom and off-the-shelf Anolis products.
"Patrick, A.C. Special Projects and ourselves all collaborated
closely to develop and specify the exact products needed
for a very precise and elegant design," says Anolis
UK’s Scott Callis, adding "It was an interesting
project which really challenged all our imaginations and
pushed the boundaries of the products and in what we could
deliver as a manufacturer".
After initial product trials using the standard Anolis ArcLine
Optic Outdoor 1 Watt incorporating Luxeon K2 LEDs configured
in an RGBA format - it was decided that additional power
plus a greater colour range was needed, together with improved
warm white output from the RGB mixing.
This resulted in Anolis producing a sample of custom ArcLine
strip.
Eighty-nine of these special Anolis ArcLine Optic Outdoor
36 RGBA fixtures with 6 x 25 degree precision elliptical
lenses to reduce light spillage are used in the installation
- 34 on the west facade, 35 on the east facade and 18 on
the south facade. The battens are mounted in the lightwells
below courtyard level, up-lighting the building fascias
and back-lighting the columns of three balconies which are
integral to the structure.
Anolis ArcSource Outdoor 36 RGBA units with 6 degree optics
are utilised to infill the areas above the various doorways.
These also have shuttered optics that fit the light precisely
to the space, another essential requirement for the scheme.
There are 10 on the east and west facades, and 16 on the
south.
The entire installation had to be discreet and as concealed
and unobtrusive as possible, with minimal impact on the
architecture.
For the main Strand entrance to the Courtyard, A.C. created
bespoke lengths of IP rated frosted tubing encasing Anolis
ArcLink 4 strip. A hundred and twenty pieces of the compact
and flexible ArcLink 4 proved the ideal choice of illumination
for a very unique application. These up-light the vestibules,
the vaulted ceiling and the capitals of the entrance's four
central columns.
The installation is completed with careful highlighting
of the courtyard statue and flagpole - achieved using Anolis
ArcSource Outdoor 36 Warm Whites with 15 degree optics.
The Anolis fixtures are driven and DMX controlled by over
50 Anolis ArcPower 72/K2 and ArcPower 36/SW drivers. The
K2 Smart White drivers have been developed specially for
electronic dimming and smooth fading of the white channels
via a range of colour temperatures. This allows for precise
control of the colour rendering, an attribute particularly
pertinent for this style of architectural lighting.
The LED lighting is controlled by a Jands Vista PC system,
triggered by an AMX panel located in the main building.
It's been pre-programmed with presets for various different
shows and events, including a selection of rich static colour
looks and mixed contrasting colours. Effects chases like
gentle ripples shimmering across the surfaces, waves and
stepped blocks of colour are also available.
A.C. Special Projects’ Managing Director, Peter Keiderling,
commented: “Patrick and his team were a pleasure to
work with and were always there to relay the design intent
in a clear and concise manor. This, coupled with a ‘can
do’ attitude from the Somerset House team, has made
this an outstanding lighting scheme.”
Back to basics
By Igrox Limited
Pest
management is, in essence, a very simple business - monitor,
control and eradicate where possible. However, all too often
pest control companies get side-tracked by new developments
at the expense of the fundamentals of the service that a
good pest control company should provide.
The purpose of a routine visit, for example, is not just
to check bait stations. Pest technicians should be taking
a much more intelligent and observant approach, by looking
for signs of pest activity and checking for the potential
for pest harbourages and ingress.
After initial identification of the signs of infestation,
Igrox follow a simple process that adheres to three main
principles: Exclusion, Restriction and Destruction. Customers
can also take responsibility by adhering to the basic recommendations
made by their Pest Control supplier in an effort to exclude
and restrict pests.
While reducing costs is all well and good, the success of
your pest control is based on the quality of the service
that is on offer. Typically pest control will be a small
element in an organisation’s expenditure, however
there is the very real propensity for pest control, if not
carried out properly, to cause trouble out of all proportion
to its financial value.
No one wants pests of any description in their office, food
processing plant or retail outlet. At best pests are a nuisance
but more seriously, they carry diseases that can be transmitted
to humans. Rodents will happily chew through electric, computer
and telephone cabling and water pipes, and pigeons rapidly
colonise buildings that they see as ideal replacements for
their original habitat. Insects, Rodents and Birds bring
with them millions of bacteria and a host of diseases from
salmonella and listeria to E.Coli 0157. Damage, contamination,
product loss and deteriorating staff relations can result.
Prosecution under Food Safety, Public Health legislation
or Health and Safety at Work legislation may follow, and
journalists love a good pest control story. The ramifications
are endless.
Pest control may be a simple business but it is a serious
business. Buyers of pest control services would do well
to get back to basics and look for a practical, effective
and proactive approach.
Rodenticides in external areas
Non-target
animals such as livestock, pets and wildlife are all at
risk of poisoning from rodenticidal baits that are poorly
presented or have spilt from damaged bait stations.
Predatory animals such as Red Kites, Barn Owls and Kestrels
are at risk of “secondary poisoning” if they
eat the carcasses of rodents killed by rodenticides.
In accordance with our commitment to safe guarding these
animals against irresponsible rodenticide use Igrox will
base all external baiting strategies on an environmental
risk assessment. This will help determine the best baiting
strategy to control pest species on a site by site basis
while reducing the risk to non-target animals. Where external
baiting has previously been carried out on a permanent basis
a decision will be made based on the frequency of rodent
activity as to whether toxic baiting should continue in
an area or whether nontoxic monitoring should be put into
place until further activity is discovered.
When rodent activity is present, rodenticides will be used
until the activity is brought under control. During this
time follow up treatments will be carried out in accordance
with the environmental risk assessment, the purpose of which
will be to monitor the progress of the treatment and to
search for and remove dead rodents from the site. All follow
up frequencies meet, but usually exceed, the minimum requirements
set down by Industry Codes of Practice and Specifications
such as BRC, M&S and Tesco.
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