HVAC Infrastructure Solution

HVAC Infrastructure Solution

Customer

Government funded Registered Training Organisation (RTO) operating two campuses in Melbourne.

The RTO offers nationally accredited courses to between 40,000 and 60,000 students each year, including Certificates I to IV, Diplomas and Advanced Diplomas, and Associate, Bachelor and Masters Degrees.

Challenge

One of the RTO’s campuses was closed in 2013 but the Victorian Government decided to re-open it in 2017. However, much of the critical infrastructure was at end of life and needed replacing.

In particular, the RTO recognised the need to fully upgrade the HVAC systems at the campus.
At $3.8 million, the upgrade wasn’t part of the RTO’s existing capital works program. Therefore, a solution was sought that required no upfront capital expenditure and was fully warranted for the term of the agreement.

Crucially, the upgrade needed to occur within six months for the intake of the first semester in 2017.

Solution

Following a comprehensive evaluation process, the RTO enlisted A.G. Coombs to deliver the HVAC infrastructure. Northquest was then engaged to help the RTO enable the project via a 10-year managed service model.

The managed service solution provides the RTO with a quantifiable saving in terms of reduced energy and maintenance costs. By developing a long term solution, Northquest was able to lower the RTO’s overall delivery cost and enable the critical early stage economic benefit the client was looking to achieve.

At the end of the 10-year agreement, the RTO takes ownership of the infrastructure knowing that it has a Tier 1 technical solution with an estimated life of 20 years.

Additionally, the new solution provides the RTO with a quantifiable environmental benefit in terms of lower carbon emissions, which in turn helps advance its sustainability policy.

Outcome

Thanks to the fast and efficient installation of infrastructure by A.G. Coombs and Northquest’s flexible managed service solution, the RTO was able to re-open its campus on time with fully functioning HVAC systems.

With no requirement for capital allocation and no downstream asset risk, the RTO now has a fully warranted solution with a known operational cost for 10 years, including all maintenance and major refurbishments. Plus, the solution offers a natural hedge against increasing power costs given the high efficiency of the equipment and infrastructure.

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