Evaluating Building Innovations (Economics, Feasibility, and Performance)

This document intends to provide a guideline for building owners/managers and design professionals to identify the “best fit” technology for a given purpose by comparing and analyzing them through three main evaluation criteria. The primary evaluation considerations identified in this course are economic, feasibility, and performance. Study each consideration closely, because decisions that are made regarding innovative technologies have a significant effect for each consideration. Examining only one of these considerations can be detrimental to a project because it may compromise the needs and resources of another. For example, if a building owner is looking to upgrade the HVAC system and looks into only the performance characteristics of a technology, a decision made on that one analysis may result in going over budget or not being in compliance with local codes. In this case, the technology would most likely not be the “best fit.” Similarly, if the building owner looks only at the economic considerations of the equation, he or she may miss out on some significant performance characteristics that could ultimately provide savings, increased efficiency, and improved comfort and durability of the building. In either case, the need for evaluating technologies for each of the three primary evaluation considerations identified in this course is essential to making the best decision for your project.

For purposes of this course, an economic analysis includes all costs associated with the technology and project. Financial considerations are often the driving factor in the decisionmaking process and extend far beyond the initial (first) cost of the technology. Other costs associated with a project include operation, maintenance, and replacement costs and expected or estimated savings (energy and cost). Other economic considerations that are likely to be impacted by integrating these technologies are increased value of the building and indirect cost or savings (those not immediately attributed to the technology but are affected by it). In addition to evaluating these costs, identify any potential funding sources and incentives available for specific technologies. One might be motivated to invest in a newer, more efficient technology if a certain government agency or group is providing financial support.

Feasibility pertains to how applicable a technology is for a given project. In many cases, feasibility considerations are accounted for automatically. Examining elements of feasibility helps a project in various ways including; maintaining a schedule, staying within budget, avoiding roadblocks, and quality assurance. Often times these considerations are “automatic” or “givens” that are not necessarily analyzed in depth. If you know you cannot displace an entire building of tenants for a long period of time, a deep retrofit is probably not possible. If a technology is not practical, you are not going to waste much time evaluating it. Not all feasibility considerations are automatic, however. In other cases, a more indepth look at the various characteristics of the project and technology is necessary to evaluate its practicality. Aspects of feasibility that should be considered for any project include; requirements from funding sources, local codes and ordinances, compatibility with existing building components, climate and geographic appropriateness, and availability of associated resources.

The third primary evaluation consideration—performance—is tied directly to how effectively a technology will accomplish the objectives of the project. Performance is a broad category that encompasses different elements for different technologies and projects. Performance can be analyzed by evaluating technologies in regard to desired attributes, such as energy efficiency or disaster resistance. It can also be analyzed by type of building component, such as lighting or HVAC equipment. Evaluating a technology’s performance depends on primary goals and objectives identified at the beginning stages of the project. In addition to ensuring that you meet these objectives, a performance evaluation will provide a level of quality assurance and help save time and money in the long run by specifying a tested and certified technology.

Each of the three evaluation considerations alone is individually significant; however, to make sure the best choice is made, all three must be accounted for. A technology that fails to meet the requirements of only one of the criteria is not going to be the optimal choice for your project.