Facilities Management Services

Commercial buildings are complex environments. Within them, water, HVAC, gas, and electric systems work separately and together within the building’s smaller ecosystems. Some of the building’s rooms are in shaded areas, some in full sun. Some systems were originally calibrated in the summer, some in winter. To further complicate matters, the humans who occupy buildings have differing needs. All of this means that buildings’ systems are bound to lose efficiency over time. And, when they do, things can get expensive. Enter retro-commissioning.

We’ve sung retro-commissioning’s praises before, but they’re worth repeating. This time, we sat down with Jim Schafer, Project Services Energy Director for PRIDE Industries, who detailed how it translates to cost savings that property managers can put back into their buildings.

First, a review of the basics:

What is retro-commissioning?

Jim Schafer: When a new building is constructed, it’s equipped with a variety of complex systems—from HVAC to electric. To ensure the systems are working correctly and efficiently, the building will undergo a “commissioning” process that includes installation, testing, and implementation of these systems and their sequences of operation. But that doesn’t always happen. “Retro-commissioning” is the same process applied to existing buildings—typically five years old or more.

How does this differ from retrofitting?

Jim Schafer: Retro-commissioning is a more holistic approach. For example, retrofitting tends to be more geared toward replacing equipment. This could mean exchanging conventional lights for LEDs or replacing HVAC pumps and motors. Retro-commissioning may include equipment upgrades, but it also focuses on honing processes and protocols to renew what’s already in place.

When is it time to consider retro-commissioning and why?

Jim Schafer: Once a building gets to be three to five years old, heat, air, water, and gas systems start to fall out of tune. Instead of pre-programmed systems efficiently managing themselves, engineers now must step in and manage equipment manually. Let’s say they turn up the heat a few degrees. Someone else might step in and make another manual change to cool things down a few degrees. Eventually, this will lead to system inefficiency, which means high utility bills. Over time, this will finally lead to system failure.

The same thing happens with water and gas systems. Every time a new building is commissioned, its systems are calibrated to operate under the conditions of that day, season, and year. Those conditions change over time. Case in point: California’s recent wet spell. A system commissioned in March 2019 won’t meet the needs of March 2023. Inefficient systems guzzle energy, resulting in high utility costs. They also break down, resulting in costly downtime that could have been avoided. Finally, tenants will be uncomfortable, and uncomfortable tenants won’t want to stay.

What would retro-commissioning look like in these instances?

Jim Schafer: Engineers would investigate the equipment’s original design—the original intent of a building’s various systems, as far as operations within the building environment. After testing each, they would analyze their findings and then discern an updated sequence of operations (SOO) for each system. Then, they would program the various building automation systems (BAS) and building maintenance systems (BMS) to this updated sequence. They would also know what rebates were available and how to factor them in. It’s all a delicate balance, but, when done right, the benefits are numerous.

What are the benefits of retro-commissioning?

Jim Schafer: Many. Improved system efficiency, leading to extended equipment life. Overall improved building operations. Fewer service calls. Occupant comfort, leading to retention. Updated documentation regarding building systems. Ultimately, what’s most attractive is the overall money saved over time, which can be turned back into the business.

Does it benefit a property manager to consider retro-commissioning purely for sustainability reasons?

Jim Schafer: The short answer is yes. A smaller carbon footprint is becoming increasingly important to sustainability-minded customers and investors. Also, for reasons of sustainability, state and local municipalities, as well as federal agencies, offer rebates for several retro-commissioning measures. Substantial water rebates alone, including those for cooling towers, reduce or even eliminate up-front out-of-pocket costs. There are also programs that pay building owners back for the kilowatt hours they save.

What kind of savings can property managers expect from retro-commissioning?

Jim Schafer: It really depends on how far in decline their buildings’ systems are. In general, reduced operational costs and savings associated with equipment life expectancy can be substantial. Calculating the cost benefits to energy savings ratio is key to a positive ROI.

Beyond cost savings, what are the additional benefits of retro-commissioning?

Jim Schafer: The comfort and safety of occupants, definitely. And tenants who feel safe and comfortable will want to stay, thereby reducing the high cost of turnover. And its’ certainly a high cost, including lost rent income, cleaning, cosmetic repair, marketing to attract new tenants, and other administrative costs. It’s always a best practice to keep good tenants, and it’s just the right thing to do.

When it comes to commercial retro-commissioning—upgrading a facility’s existing systems and protocols—a focus on water conservation makes sense. Water costs have been steadily rising over the last two decades and, in recent years, have skyrocketed. Plus, given ongoing drought conditions in the western United States, conserving water is simply the right thing to do. The good news is that water rebate programs are available in every neck of the woods, so water-wise upgrades can pay for themselves—often with little to no upfront cost. But where can you get rebates and incentives, and what upgrades typically qualify? Here’s what facilities managers and property managers need to know:

First, the where and who. Often, you’ll need to look no further than your county’s water agency. For example, California’s Placer County Water Agency (PCWA) lists seven different rebate programs on its website, incentivizing everything from lawn replacement to high-efficiency toilets. Both the Environmental Protective Agency (EPA) and DSIRE, a project that’s funded by the U.S. Department of Energy, feature comprehensive lists of rebates and incentives on their websites. Programs, including tax incentives, are also available at the state and federal levels.

Now, let’s zero in on the “what”—as in what typically qualifies for water-related retro-commissioning rebates or incentives? The short answer is “lots,” but let’s start with ten of the most common:

Outdoor Water Rebate Programs

Lawn Conversion. Between watering, mowing, aerating, fertilizing, and managing runoff, lawn maintenance is expensive. Watering alone, especially in droughted areas, can cost a small fortune and waste this precious resource. Fortunately, most water agencies offer rebates that will pay you to replace your lawn with a drought-tolerant landscape.

Example: The Metropolitan Water District of Southern California offers a rebate of $2.00 per square foot up to 50,000 square feet of conversion per meter year.

Smart Controllers. By some estimates, incorrect irrigation settings waste up to 50% of a landscape’s applied water. Smart controllers automatically reduce watering times based on weather, soil conditions, and landscape type. They shut off during rain events and can be adjusted remotely via Wi-Fi. Many municipalities offer rebates to replace conventional controllers with new, smart versions.

Example: The City of Chandler (Ariz.) offers rebates of 50 percent of a smart controller’s cost (excluding taxes and installation) up to $250 per unit (max 5).

Irrigation Upgrades. While smart devices can control when a landscape is watered, a switch from traditional spray to drip or rotary nozzles can limit water output and direct it to where it’s most needed.

Example: The Sacramento City Department of Utilities offers these irrigation upgrade rebates, up to $50,000.

Soil Moisture Sensors. Related to smart controllers, sensors “measure the amount of moisture in the ground beneath a landscape and override scheduled irrigation accordingly.” (EPA) The result is water savings of at least 20 percent.

Example: Austin (Texas) Water District offers rebates on flow sensors ($300 each), pressure regulating components (50 percent of equipment cost up to $1,500), spray-nozzle conversion ($4 per nozzle, up to $1,000), and master valves ($100 each for systems installed before 2009 only).

Rain Barrels and Cisterns. An ancient practice, harvesting and re-using rainwater makes sense—and not just because it saves tap water. Rainwater is soft, so grass and other plants prefer it.

Example: SoCal Water Smart lists rain barrel rebates at $35 per 50-199 gallon barrels (max qty. 2) and Cisterns from $250 to $350 (1 per).

Indoor Water Rebate Programs

Low-Flow Toilets and Urinals. By simply limiting the amount of water used per flush, a typical business can reduce water consumption by around 40 percent. Ultra-low and zero-water urinals can decrease water usage by up to 88 percent.

Example: The City of Santa Fe (N.M.) offers commercial toilet rebates from $125 to $500 for high-efficiency toilets with effective flush volumes of 1.28 gallons or less.

Plumbing Flow Control Valves. Designed to maintain water pressure while reducing faucet flow by up to 60 percent, flow control valves offer a substantial bang for the water-saving buck. Plus, rebates abound to get you started.

Example: Several Southern California agencies offer rebates on plumbing flow control valves and laminar flow restrictors at $5 and $10, respectively.

Cooling Towers. Inefficient conductivity controllers lead to unnecessary water loss via the blowdown process. Meanwhile, Ph imbalances lead to scaling-related inefficiencies. Rebates are available that address both issues.

Example: The Southern Nevada Water Authority offers up to $500,000 in cash incentives to upgrade your cooling tower and swamp coolers.

Ice Making Machines and Food Steamers. The typical ice-making machine consumes more water to cool ice than to make the ice itself. Boiler-based food steamers are also water guzzlers. Fortunately, for food services businesses, rebates on boiler-less food steamers and air-cooled ice-making machines are plentiful.

Example: Sonoma Water Organization (Calif.) offers rebates on water-efficient ice makers at up to $600 and food-steamer rebates at up to $200.

Dry Vacuum Pumps. Many businesses, from dental to petrochemical, rely on liquid-ring vacuum pumps. Dry vacuum pumps do the job while conserving water, and most municipalities offer some type of rebate for them.

Example: The Inland Empire Utilities Agency (Calif.) offers up to $175 per .05 HP dry vacuum pumps (Max 2).

Retro-commissioning is hot, and for good reasons. It saves money while promoting sustainability—especially where water is involved. And right now, while rebates are bountiful and water resources scarce, it makes more sense than ever.

Tenant turnover is expensive. On average, it costs around three months’ rent—and that’s on top of vacancy-induced rent loss. Each time a tenant leaves a property, it must be thoroughly cleaned and returned to pristine cosmetic condition. Then there are administrative costs, advertising costs, and costs associated with showing the space. To mitigate these expenses, the obvious answer is tenant retention, but not just any tenant. Most commercial property management companies have experienced at least one bad apple, the tenant who is consistently late on rent (or doesn’t pay it at all), damages property, and violates property rules. All the more reason to make your property one that attracts—and keeps—conscientious tenants. Looking to the experts, we’ve gleaned 11 tips on how to do this. And most of these tips are just as important for in-house facilities managers looking to keep their internal customers happy. 

  1. Occupant Comfort.
    Whether in a workspace or a living space, people want to be comfortable—first and foremost. This includes a moderate temperature, visually appealing lighting, good acoustics, excellent air quality, and cleanliness. A well-maintained HVAC system, coupled with preventative maintenance protocols, goes a long way toward ensuring temperature control and air quality. Sufficient light of a comfortable color, ample insulation, and well-trained cleaning staff are also key, as are reasonable rules for tenant use (quiet periods, storage and disposal provisions, parking protocols, etc.). Not only can these measures keep tenants physically comfortable, studies show a clean, comfortable workspace boosts mental health.

  2. The Right Staff.
    Tenants regularly cite the professionalism and personableness of maintenance and custodial staff. Conversely, they are quick to note when these are lacking. All the more reason to attract and retain staff that’s not only knowledgeable but also friendly and professional in all interactions.

  3. Connectivity/Communication.
    Whether to request a work order or submit a rent payment, quality tenants expect commercial property management professionals to be digitally accessible with a quick (if not instant) response time. They’ll also want you to be available through a variety of channels, including social media, email, phone, and website. Also, be sure to alert tenants, well ahead of time, when maintenance may disrupt a building’s normal activities, and be prepared to answer any questions they may have about the disruption. Blessing and/or curse, constant availability is part of doing business as a commercial property manager today.

  4. Flexibility.
    The pandemic changed the nature of building usage as well as tenant expectations around flexibility. Nowadays, with hybrid schedules and a rapidly changing business world, tenants want to negotiate terms when it comes to lease duration, evolving space requirements, termination options, enhanced cleanliness protocols, and even furniture rearrangement.

  5. Relationships.
    Convenient as a digitally connected world is, genuine human-to-human relating can’t be underestimated. Small gestures—knowing tenants by name, being aware of their likes/dislikes, and reaching out at holidays—can make them more likely to view your interactions as relational, as opposed to solely transactional. Likewise, a community newsletter cultivates a sense of communal inclusion. In these contexts, tenants will be more inclined to work collaboratively with you and their fellow tenants.

  6. Proactive Leasing.
    Don’t assume your tenants will remember when it’s time to renew a lease. Reach out to them in advance and use technology to make renewal as easy as the click of a button. Moreover, given the cost of turnover, it may be worth it to offer lease-signing incentives like a month of reduced rent—and well before lease renewal dates.

  7. Preventative Maintenance.
    Quick maintenance response times are imperative, but preventing a problem before it occurs? That’s golden—and not just for tenants. By addressing issues before they become irreparable, preventative maintenance ultimately cuts commercial property management costs.

  8. Fair Rules and Enforcement.
    Because commercial buildings are often communal, the rules therein should be about maintaining a safe, comfortable space for everyone. Allowing a mediocre tenant to blare music in their office may result in a quality tenant’s departure. Establish, upfront, what the rules are and why they are in place. Then, fairly and consistently enforce them.

  9. Move-In and Out Inspections.
    Legally mandated in some states, move-in and move-out inspections are a best practice whatever your facility’s zip code. Put simply, they hold everyone accountable—tenants, landlords, and property managers—in a straightforward way.

  10. Get Feedback.
    Surveys make it easy to find out what’s working, and, more importantly, not working for your tenants. But it’s not enough to gain their insights. Of equal importance is acting on them. If a particular issue is cited by several tenants, it needs to be addressed promptly and thoroughly. If similar amenities are requested by many tenants, it may be worth it to provide them.

  11. Be Mindful of Competition.
    What are your competitors’ leasing rates? The condition of their buildings? Extra perks for tenants? What amenities do they have that you don’t or vice versa? Commercial property management is more competitive than ever, so it pays to be aware.

How would you like to cut your commercial building energy costs by 40 percent? You can, with retro-commissioning.

That is the amount you stand to save with what the American Council for an Energy-Efficient Economy (ACEEE) calls for, calling “comprehensive” for a review of a building’s energy-hungry systems—aka retro-commissioning.

First, let’s get our terms straight. There are three types of commissioning for commercial buildings:

  1. Commissioning—when a new building comes online, all systems are measured to ensure they operate as deigned.
  2. Retro-commissioning—when you review the systems of an existing building for the first time, some years after it’s built.
  3. Recommissioning—when you review the systems of a building for a second or third time.

Yes, it’s a little confusing. It’s the same process with a different name depending on when you conduct the review. But the ACEEE says retro-commissioning of existing buildings and recommissioning older buildings are where you stand to gain the most bang for your buck.

Getting commercial building owners to undertake pricey energy retrofits can be a struggle. Many owners only see the price on the estimate and overlook the long-term cost savings and benefits that the project will bring. Retro-commissioning/recommissioning of provides a cost-effective, high-ROI alternative.
From here on we’ll refer to both recommissioning and retro-commissioning as retro-commissioning, as that’s the most common version of process.

Buildings Eat Energy

It is no secret that commercial building operations account for 28 percent of global greenhouse gas emissions. More than half of the commercial buildings in the United States were built before 2000 and continue to rely on older, inefficient energy infrastructures. Studies by organizations like the ACEEE found that retro-commissioning can achieve 40 percent energy savings–seven times more than a typical single-measure retrofit. Yet only some property owners and managers are embracing a retro-commissioning approach.

What Systems can be Retro-commissioned?

Retro-commissioning programs typically target energy-intensive equipment and inefficiently controlled systems. A list of equipment and systems to start with from the Federal Energy Management Program includes:

  • Building automation system, including controlled devices, sensors, control loops, and logic
  • Cooling systems
    • Central cooling plant
    • Primary air-handling units
    • Terminal units
    • DX systems
  • Heating systems
    • Central boiler plant
    • Primary heating systems
  • Fire safety/smoke purge aspects of the HVAC system
  • Lighting systems
  • Hot water equipment
  • Humidity control equipment
  • Building pressurization controls

The Good News About Retro-Commissioning

A report by the Building Commissioning Association found that the cost of retro-commissioning commercial buildings is anywhere from $.05 to $0.50 per square foot. With up to 40 percent energy savings, payback periods range from two months to two years. That is good news. But there is even better news—many utilities offer performance-based retro-commissioning incentives paid directly to owners based on the kilowatt-hours (kWh) saved, accelerating payback, and sometimes paying for the entire project.

For example, California’s Pacific Gas and Electric (PGE) pays owners $0.09 for every kWh saved. The first payment is based on estimated energy savings, and the second payment is based on actual savings after 12 months.

The Los Angeles Department of Water and Power (LADWP) breaks down retro-commissioning incentives by retrofit category:

  • $0.08/kWh for electricity saved from lighting fixture retrofits
  • $0.30/kWh for savings from high-efficiency HVAC/refrigeration equipment and variable-speed drives
  • Up to $750/kW for thermal energy storage

All non-lighting incentives are capped at 75 percent of the total cost, while lighting incentives may cover 100 percent.

Similar programs are offered throughout the country.

There are also soft benefits of retro-commissioning for owners and tenants:

  • Increased property values
  • Improved tenant comfort and retention
  • Longer equipment life
  • Reduced maintenance costs

Owner/tenants gain the added benefits of a 10 percent improvement in employee productivity and 40 percent fewer employees taking sick days, according to the ACEEE.

When is it Time to Retro-commission/Recommission a Building?

Any building that has never been commissioned should be retro-commissioned to ensure all systems perform as specified. After a first commissioning, second and third commissions are called recommissioning, but the process is identical to retro-commissioning a building that has never been commissioned. Should you consider another commissioning for your commercial buildings? There are a few things to keep in mind.

Do You Qualify for Incentives?

The first question to ask is whether your utility offers incentives and if you qualify for them. PGE’s incentives are available to commercial customers that:

  • Receive gas or electric service from PGE.
  • Pay a California public purpose programs surcharge on their utility bills.
  • Own or operate a facility that has at least 100,000 square feet of conditioned space or that consumes 2,000,000 kWh or 50,000 therms per year.
  • Have access to funding to implement commissioning measures within 12 months.

LADWP’s qualification criteria are more relaxed. Commercial building owners:

  • Must be an LADWP non-residential electric customer in good standing.
  • All projects require a pre-inspection of the existing equipment and baseline conditions.
  • Any new equipment must replace existing equipment.

How Long Since Your Last Checkup?

A second question to ask about retro-commissioning is when you last went through the process. As with your dentist and your doctor, you need to schedule regular checkups for your buildings!

According to the Department of Energy, you should consider recommissioning every 3-5 years. The performance of sensors and controls inevitably decays over time, heating coils clog, and new technologies come online that offer cost-effective hardware and software upgrades.

You Are Burning More Energy

Another sign that it might be time for retro-commissioning is that your energy use and costs are rising beyond the impact of rate increases and climate-related events like cold snaps and heat waves. The Department of Energy also recommends “ongoing commissioning,” where the monitoring measures and equipment remain in place to detect and respond to changes in system performance in real-time.

Your Tenants (or Employees) are Complaining

Listening to tenants and/or employees is always a good idea. Regarding energy performance, it is better to hear from them sooner rather than later. If building occupant complaints or service requests sharply increase, it is a sign of system performance change. It is important to get regular “boots-on-the-ground” feedback because if sensors or equipment are malfunctioning, monitoring or reporting systems might not see it.

A Remodel has Changed Building Configurations

When a building undergoes structural, operational, or occupancy changes that require reconfiguration of the systems like lighting, HVAC, or air quality, you will need to verify that the new configuration is operating with the same efficiency as originally designed. You should also verify that maintenance personnel are adequately trained and have documentation to operate the building efficiently and achieve optimum performance.

Finding a Retro-commissioning Service Provider

Most commercial building owners outsource commissioning to third-party experts with the experience and tools to audit and test system performance, recommend, and implement solutions, and measure results. Few property owners or managers have the in-house expertise to design and execute a retro-commissioning project. And, if you are looking to take advantage of utility incentives, most retro-commissioning service providers will tackle the “paperwork” of applying for the benefits, allowing owners, in some cases, to pay only the project’s net cost upfront. In the case of the LADWP’s lighting incentives that pay up to 100 percent of project costs, the upfront fees could be zero.

Service providers can also be invaluable after completing a retro-commissioning project, as implementation is not the end of a project. “Without training for facility staff and an operations and maintenance program, the benefits that accrue will not last,” the Department of Energy said.

At the project’s end, a retro-commissioning service provider should conduct thorough training for facility employees and provide documentation for future staff. Training should include a combination of group workshops and hands-on demonstrations specific to the building’s equipment.

Reasons to Retro-commission

In addition to reducing operating costs, retro-commissioning benefits for owners mirror the benefits of the broader green building movement. These include sustainable and efficient building designs, healthy and comfortable tenants and employees, public recognition, and accountability among peer organizations and shareholders regarding Environmental, Social, and Governance (ESG) goals. Buildings are often the first impression customers, employees, and partners have of businesses, and all three types of visitors increasingly favor companies working to reduce carbon footprints.

Need more information?

If you want to improve energy consumption, or if your building's systems are not meeting the demands of your operations, PRIDE Industries can help you to assess and improve your building's performance.

The ACEEE's top recommendation to the commercial real estate industry is existing building commissioning with recommendations for capital improvements.

Commercial facility management can be complicated, right? We’re talking buildings and grounds, yes, but also the systems, procedures, and protocols that keep those buildings and grounds operational, attractive, and clean. Amidst carrying out day-to-day business, these extra responsibilities can prove too much for property owners. Also, a poor management company can degrade facilities and employee and tenant satisfaction. A good commercial facilities management company can save an organization money while also leveraging the benefits that come with a sanitary, aesthetically pleasing, well-functioning workplace. But how to find the right commercial property management company for your organization? Here are 10 considerations:

1. Are is the facility management company reputable?

In a world where everything is Googleable, a little research can go a long way. Start by checking the Better Business Bureau’s website. Are there customer complaints? Compare them with others in the industry. Longevity matters, too, so how long have they been in business? Do they have longstanding customers?

2. Are they safe?

What do they do to foster a culture of health and safety? What’s their record? How do they approach preventative maintenance? The right commercial facilities management company not only saves money but also prevents injury and even saves lives.

3. Are they experienced with an organization of your size and configuration?

A college campus with several small buildings will require a different approach than, say, a high-rise office complex. Likewise, an industrial space or a military base will have different needs from a traditional office space. Bigger facilities will necessitate greater orchestration while smaller ones may require pin-pointed expertise in a certain system.

4. What value have they added to their customer’s organizations?

Have they reduced operational costs? Enhanced company culture? Improved preparedness? Get specific. By doing X for Company Y, they saved $Z. By what percentage were downtimes decreased? How has employee or tenant satisfaction measurably improved?

5. What technologies do they use and to what ends?

Start by asking about their computerized maintenance management system (CMMS). What type do they use? Do their technologies transform data into work orders? How have they informed preventative maintenance? Are they familiar with IoT applications? If so, which ones?

6. Are they sustainability minded?

Increasingly, both customers and investors want the companies they work with to be good stewards of the environment. Plus, sustainability measures can save money and are often rewarded via rebates and tax incentives.

7. What accreditations do they have?

The International Sanitary Supply Association (ISSA) Cleaning Industry Management Standard, Green Building with Honors (CIMS-GB with Honors) Certification is the gold standard for clean, green building management, for example.

8. Is their staff reliable?

At a time when people in the service industries are leaving jobs en masse, reliability is vital. What’s their turnover rate? Absenteeism? The custodial industry turnover averages around 200 percent. Constant turnover disrupts service quality due to a lack of consistency and knowledge, and tenant/employee satisfaction degrades.

9. Are they experienced in retro-commissioning?

Unlike traditional retrofitting, retro-conditioning focuses on maximizing efficiency in pre-existing buildings and grounds systems. Typical results include lower energy and water consumption, lower cost, and longer run-time between maintenance periods or replacement. Plus, the buildings and grounds become more comfortable for employees and customers. The right commercial facilities management company will have experience doing this.

10. Do they know what incentives are available for energy and water efficiency improvements and how to get them?

At federal, state, and county levels, rebates and pay-for-performance incentives are out there. Some utilities companies offer them as well—and sometimes they’re enough to completely pay for a system’s overhaul. In California, for example, utilities giant Pacific Gas & Electric’s Retro-conditioning program (RCx) will pay customers directly based on achieved annual energy savings per kilowatt hours.

A facility’s condition speaks volumes—to the employees who work there and the customers who visit. So, in considering 1-10 above, discern how each measure will enhance the experience of those who use the space. After all, facilities management is ultimately about people.

Need help with your facility operations?

PRIDE Industries can help you with facility operations, custodial and maintenance services, job assistance, and other services.

Retrofitting, retro-commissioning (RCx), and recommissioning commercial buildings to cut energy are on the rise, and for good reason.

Building, as it turns out, is bad for the planet.

New construction devours natural resources like lumber, oil, and electricity at massive rates while also generating large volumes of greenhouse gas. The industry’s consumption of cement alone results in nearly three billion metric tons of Co2.
Existing buildings also contribute substantially to carbon emissions through their electrical, water, and HVAC systems. In fact, buildings account for almost 40 percent of global Co2 emissions.
Cost, of course, is also an issue. Inefficient buildings with inefficient systems are expensive to maintain—especially now, as energy prices soar along with overall inflation.
But buildings—structures capable of sheltering large groups of people—are necessary, so what’s to be done?

One answer is retrofitting—replacing a building’s old, inefficient systems with new ones—but that can be expensive. For many commercial buildings, retro-commissioning or recommissioning may be a better solution. But, before we delve into the “why’s” let’s get clear on the “what’s.”

Commissioning? Retro-Commissioning (RCx)? Recommissioning? A Glossary of Terms

Even the experts say these terms—and discerning their overlap—can get a little confusing. Fortunately, the California Commissioning Collaborative has broken them down:

Building commissioning is when a new building is initially commissioned. It undergoes an intensive quality assurance process that begins during design and continues through construction, occupancy, and operations. Commissioning ensures that the new building operates initially as the owner intended and that building staff is prepared to operate and maintain its systems and equipment.

Retro-Commissioning (RCx) is the application of the commissioning process to existing buildings. It is a process that seeks to improve how building equipment and systems function together. Depending on the age of the building, retro-commissioning can often resolve problems that occurred during design or construction, or address problems that have developed throughout the building’s life. In all, retro-commissioning improves a building’s operations and maintenance (O&M) procedures to enhance overall building performance.

Recommissioning is another type of commissioning that occurs when a building that has already been commissioned undergoes another commissioning process. The decision to recommission may be triggered by a change in building use or ownership, the onset of operational problems, or some other need. Ideally, a plan for recommissioning is established as part of a new building’s original commissioning process or an existing building’s retro-commissioning process.

* Haasl, T., and K. Heinemeier. 2006. “California Commissioning Guide: New Buildings” and “California Commissioning Guide: Existing Buildings”. California Commissioning Collaborative.

The commissioning of a new building isn’t mandatory in every state, and in those where it is, it’s a relatively new development. For example, California’s 2019 Energy Code now mandates commissioning for buildings over 10,000 square feet. U.S. Federal agencies started earlier, requiring “Total Building Commissioning practices” of their buildings’ systems, regardless of state, since 2006. But even buildings that have been previously commissioned were not always designed for energy efficiency.

Many municipalities offer rebates for retro-commissioning, which makes it even more attractive. Building owners get paid for the kilowatt hours they save. Rebate amounts and qualification criteria vary. Rebates make retro-commissioning a “no-brainer,” according to energy efficiency experts.

Jim Schafer, Project Services Energy Director for PRIDE Industries, notes, “The original building design, prior to the 2000s, typically wasn’t energy efficient, as most architects weren’t focused on energy efficiency then. It wasn’t their area of expertise or focus, so many didn’t fully understand energy-efficient design.”

When to Recommission or Retro-Commission?

The U.S. Department of Energy recommends that buildings are recommissioned at “about the 3-5 year point since the previous commissioning.” In instances where a building has never been commissioned, initial retro-commissioning can take place at any time—the sooner after initial construction, the better.

What Does Recommissioning/Retro-Commissioning Take into Account?

These assessments and processes delve into HVAC, building automation, building enclosures, water, lighting, control strategies, and operations sequencing—separately and as these systems work together in varied conditions.

“To get a better, more in-depth understanding of how the different systems respond to different conditions,” says Shafer, “a good RCx will use functional testing, trend logging of HVAC systems, and data logging of the electrical system.”

A recommissioning/retro-commissioning team will also be informed about rebates and incentives offered through state and county agencies.

What’s the Process?

For both recommissioning and retro-commissioning (RCx), the process typically involves four steps:

  • Planning – Objectives are set. A building’s operational requirements are identified and documented. A walk-through is performed. Trouble spots are discerned. A written plan is created. A team is assembled.
  • Investigation – Building/facility documentation is reviewed. Intended purposes and functions for building’s systems are identified. A list of findings is created. Diagnostics and testing are performed. Operational improvements are prioritized. Recommendations are made. Simple repairs are made.
  • Implementation – An implementation plan is developed. Identified operational improvements are implemented, including repairs, replacements, and building revisions. Results are verified and documented.
  • Handoff – A final report, a systems manual, and a recommissioning or retro-commissioning plan is developed. Training is provided to operations and maintenance personnel. The building is formally returned to service through a close-out meeting.

What’s the Payoff?

  • Cost Savings
  • Increased ROI
  • Improved System Efficiency
  • Improved Energy Efficiency
  • Improved Reliability
  • Decreased Waste
  • Greater Comfort for Building Inhabitants
  • Smaller Carbon Footprint
  • Qualification for Rebates and Incentives

A study by Lawrence Berkeley National Laboratory (LBNL) underscores these benefits. The lab studied 643 commercial buildings, finding that the retro-commissioning (RCx) process was “compelling” when it came to energy and cost savings. RCx resulted in a 16 percent median whole-building energy savings for existing buildings with a payback time of 1.1 years. Further discovered cost benefits included cash-on-cash returns of 91 percent—all while helping the planet.

Retro-commissioning’s benefits are so compelling, in fact, that our nation’s Capitol has gotten on board. RCx has contributed to a 48 percent building-related drop in greenhouse gas on the Capitol campus.

In general, facilities managers are always looking to do more with less, and even more so when inflation and energy prices are on the rise. Retro-commissioning is a cost-effective, high reward step managers can take to improve energy efficiency.

“I’ve been doing RCx and Performance Contracting for over 30 years,” says Schafer, “with many projects guaranteeing savings. Understanding the cost benefits to energy savings ratio is key to a positive ROI—especially given the current economy.”

Need more information?

If you want to improve energy consumption, or if your building’s systems are not meeting the demands of your operations, PRIDE Industries can help you to assess and improve your building’s performance.

“To get a better, more in-depth understanding of how the different systems respond to different conditions, a good RCx will use functional testing, trend logging of HVAC systems, and data logging of the electrical system.”