Halving Energy Costs in Under a Day

How a structured technical review uncovered a critical HVAC control issue—restoring correct operating schedules, improving system performance, and delivering a sustained 50% reduction in energy costs without capital expenditure

Overview

Performance Facility Management was engaged to investigate unusually high energy consumption at a suburban shopping centre within a broader property portfolio.

What initially appeared to be a complex efficiency issue was ultimately traced to a fundamental control failure—identified, validated, and resolved within a short period of time.

The result was a sustained reduction of approximately 50% in energy costs, achieved without capital expenditure.

The Site

The asset was a neighbourhood shopping centre of approximately 10,000 sqm, comprising:

  • Two anchor tenants
  • A range of specialty retailers
  • Food and beverage outlets

The centre operated consistently at 12 hours per day, 7 days per week, and was broadly comparable in size, layout, and usage to other assets within the same portfolio.

The Challenge

The property manager identified that the site’s energy consumption was significantly higher than expected.

When benchmarked against a comparable shopping centre:

  • Energy usage was nearly double
  • Operating hours were identical
  • Location and climate conditions were similar
  • Building size and tenant mix were consistent

This indicated that the issue was not behavioural or environmental—but likely technical or operational in nature.

Performance Facility Management was engaged to undertake a structured investigation and identify the root cause.

Our Approach

Rather than treating the issue as a standalone fault, we adopted a holistic and structured methodology, combining:

  • Mechanical services audit
  • HVAC asset register development
  • Building Management System (BMS) assessment
  • Functional testing of plant and control systems

This approach ensured that we not only identified the issue, but also improved the overall visibility, documentation, and long-term management of the asset.

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Investigation & Key Findings

BMS Performance Review

The Building Management System was relatively modern (less than 10 years old), however initial testing revealed:

  • Limited functional control
  • Inability to reliably start/stop key plant, including air handling units
  • Poor integration with mechanical systems

This raised concerns regarding whether the BMS was being used effectively to control the site.


Mechanical Services Switchboard Inspection

Further investigation led us to the mechanical services switchboard—where the root cause was identified.

👉 The system had been switched from automatic (BMS control) to manual operation

This meant:

  • HVAC systems were operating continuously (24 hours per day)
  • Instead of following the intended 12-hour daily schedule

This single issue effectively doubled the runtime of major plant equipment—directly explaining the excessive energy consumption.


Validation & System Testing

Before implementing changes, it was critical to understand why the system had been set to manual.

We:

  • Tested all BMS outputs and control sequences
  • Verified start/stop functionality of plant equipment
  • Investigated for underlying faults or failures
  • Consulted with the incumbent mechanical services contractor

Despite thorough testing, no system fault was identified that justified continuous manual operation.

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Implementation

Following validation, we:

  • Returned all systems to automatic BMS control
  • Recommissioned the BMS to ensure correct operation
  • Verified plant start/stop scheduling aligned with site requirements
  • Documented all changes and findings for client reference

This ensured the system was not only corrected—but also reliable moving forward.


The Outcome

The impact was immediate and measurable.

  • HVAC operation reduced from 24 hours to 12 hours per day
  • Energy consumption dropped significantly
  • Performance aligned with comparable assets within the portfolio

👉 The next energy billing cycle confirmed a reduction of approximately 50% in energy costs


Financial Impact

  • Previous energy costs: approximately $20,000 per month
  • Post-intervention costs: approximately $11,000 per month
  • Monthly savings: approximately $9,000

The total cost of our engagement—including audit, asset register, and recommissioning—was approximately $9,000.

👉 Return on investment was achieved within a single billing cycle


Key Insights

This project highlights several common risks in unattended or lightly managed buildings:

  • Systems can drift from intended operation without visibility
  • Manual overrides may remain in place indefinitely
  • Preventative maintenance alone does not always identify control issues
  • Significant inefficiencies can persist unnoticed

Importantly, the issue was not mechanical failure—but lack of structured oversight and control.

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The Performance Facility Management Approach

Our role extends beyond standard maintenance.

We provide technical oversight and structured investigation, ensuring:

  • Systems operate as intended
  • Issues are identified early
  • Decisions are based on verified data
  • Clients have clear visibility of their asset

In this case, a high-impact issue was:

  • Identified quickly
  • Properly validated
  • Resolved with minimal intervention
  • Delivered as a measurable financial outcome

Supporting Property Managers & Asset Owners

For property managers, issues like this often require:

  • Multiple site visits
  • Specialist contractors
  • Time-consuming investigation

We streamline this process by:

  • Acting as a technical extension of your team
  • Providing clear, photo-supported and data-backed reporting
  • Reducing the need for site attendance
  • Delivering practical, outcome-focused solutions

👉 Allowing you to maintain control of the asset while reducing your time on site.


Conclusion

This was not a complex engineering problem.

It was a control and oversight issue—one with a significant financial impact.

With the right technical approach, it was:

  • Delivered as an ongoing operational saving
  • Identified within hours
  • Validated through structured testing
  • Resolved with immediate effect

Need Help Identifying Hidden Inefficiencies?

If your building is experiencing unexplained costs or performance issues, we can help you uncover the cause and implement practical solutions.

👉 Book a Site Assessment
or
👉 Speak With Our Team

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