How to “fit” capital expenditures into the budget.

However, new construction technologies are changing the structure of the developer's financial resources distribution in favor of advance capital investments at the construction stage. Within the framework of the new building design concept, the construction budget is fully included from the very beginning. Even at the design stage, the needs of the building owner are determined and included in the budget, and the construction schedule of the facility is established. Work is also underway to bring the priority requirements of the building owner into line with the construction budget (the owner's wishes and needs and his financial capabilities are discussed during negotiations).

Currently, potential building owners are learning more and more about the benefits of «smart» construction technologies.
These technologies not only provide for the concept of early planning, but also new functionalities that are provided by the experience of such design practices. However, despite the new planning trends, for many construction projects the construction budget is set before the discussions about whether the house should really be “smart” begin.

The use of integrated construction technologies is a positive moment for a design construction organization, even if the budget has already been allocated and it does not provide for the construction of a smart home.

The main reason is that most of the modern building technologies (such as building automation, security, and control systems) are already included, regardless of whether the building was designed using traditional or smart home technology. Simply put, smart buildings differ from traditional buildings by eliminating redundancy. They also do away with the unnecessary amount of cables, cable ducts, equipment, and network protocols that are the legacy of the traditional design and construction process. And smart construction requires fewer contractors.

Removing redundancy and duplication of systems can reduce capital expenditures during construction. How exactly? Here are a few examples:

Cable laying

A typical scenario: on Monday, contractor A runs an electrical cable down into a hallway, and on Tuesday, another contractor, B, runs a cable down into the same hallway. Given that the cost of running cable is 50% of the labor, a single contractor who ran both cables down into the hallway could save a significant amount of time and money. Yes, you can’t completely eliminate the cost of running the second cable, because it is still being run and connected, but depending on the density of electrical cables and the type of building, you can save 25 to 40% on the cost of the labor performed. And that’s 12-20% of the total cost of running cable that can be saved by consolidating the cable infrastructure and dealing with a single contractor. Assuming that cable management is associated with 30% of the cost of each of the building’s systems, the overall savings are 4-6%. Not much, but not bad for a start.

Cable channels

If the installation of cable systems is carried out by a single contractor, then the cable channels can also be combined.
The cable channel is a long type of coupling hooks, cable trays and cable channels themselves. The cost of laying cable channels is included in the construction budget (although in some cases it can be attributed to the electrical installation work column).

The fact is that cable channels and cable trays are installed by a contractor who is engaged in electrical installation work.
Industrial analysis shows that the cost of the materials used for cable channels with an integrated approach to installing systems remains virtually unchanged.

However, as in the case of laying cable systems, combining cable channels significantly reduces the cost of installation work. An additional benefit in this case is the combination of low-voltage and high-voltage networks, which is included at the design stage.

Potential cost savings depend on the wiring organization and density of cable channels. Savings can range from 15% to 60%. However, to be conservative, let's assume that savings on this can amount to 4-6% of the total cost of laying cable facilities.

Project Management

When building systems are installed separately, the project has many contractors and sometimes subcontractors. Each contractor manages a separate crew. Having multiple contractors requires the general contractor to direct, supervise, and coordinate the work. A complex hierarchical system is created. By consolidating the installation of building systems and electrical cables in the hands of one contractor, the number of management levels can be reduced by 30%.
Assuming that project coordination adds 8% to the cost of installing all systems, the overall savings will be 2-3%.

Equipment

Integration of building systems also involves integration of the servers that support the systems. This results in a reduction in the hardware and software base (buying licensed software is not cheap) and the required space for placing the equipment. Perhaps you will not save much on this, but it will help to remove unnecessary redundancy and low efficiency, which we inherited from the classic approach to the development of building systems.

Staff training

Integration of building systems also changes the required number and functionality of automated workstations for the system administrator. There is no longer a need for a separate automated workstation for each system.

The administrator can access them via a standard browser and a graphical user interface. The unified system allows access (authorized) to many systems at once via a standard interface, both on-site and remotely. This will result in a reduction in the amount of work required to train personnel to service the systems using management tools. The need for equipment will also decrease.

The savings at the initial stage may be insignificant. But over the life cycle of the building systems, the integration of management tools will have a significant impact. The numerical expression of the savings depends on the scale of the project.

Implementation time

Time is money. An integrated system will not only require less time for installation, but also less time for configuration. The use of a single database standard compatible with SQL and ODBC, and XML and SOAP software environments will facilitate integration between building automation systems, as well as between modern construction systems at the construction stage and construction business organization systems, such as: accounting of necessary purchases, human resources, etc. The faster the project is implemented, the cheaper it is.

Electricity

PoE (Power over Ethernet), which allows the transmission of electrical energy along with data to a remote device over a standard twisted pair Ethernet cable, is one of the most underrated technologies in building technology and building operations. Although building system integration is possible without PoE, the capital investment savings and reduced building operating costs with PoE are very promising. It is expected that this system of powering devices will soon become an integral part of the smart home. For example, a card reader that is part of an access control system requires not only a communication cable, but also power. How much can be saved if the communication cable also supplies power to the device? Eliminating the need for a local power source will save $250 per outlet during construction and almost $750 during subsequent operation.

The reduction in capital expenditure associated with smart building technologies depends greatly on the type of building, its size, the local construction market, etc. One of the most reliable ways to save is by saving on cable installation, cable management, and project management. Potential savings are around 15%. If we take into account that the integration of systems will require less equipment, less training costs, and less time to implement the project, and do not forget about PoE technology, then the savings can reach 20%.

For most building owners and those involved in engineering and construction projects, as well as those directly involved in construction, the choice of “smart” technologies will be quite natural. After all, smart construction technologies eliminate duplication of building systems, increase their efficiency and save money at the construction stage.

Stages of designing a smart home:
Determining the location of equipment (air conditioner, air purifier, surveillance cameras, etc.)
Determining the location of controllers and the devices themselves
Combining cable channels
Determining the required amount of electrical cable
Coordinating drawings
Determining the order of cable laying
Coordinating areas of responsibility between contractors involved in installing equipment and laying cables
Providing equipment and consumables
Installing, connecting and testing equipment
Preparing reports (engineering schemes, diagrams)