October 04, 2023

How to Get an Accurate Assessment of Your Equipment’s Condition

When capital budgeting time begins each year for your facility, it can be very challenging to get money for major HVAC systems without insight into the condition of that equipment.

To help address this need, GEM Service developed the HVAC Equipment Risk Assessment (view a sample report). This assessment was designed to give facility managers and building owners the very specific, detailed information needed to understand what repairs and replacements will be required in the future.

Having this type of comprehensive information will allow you to not only plan and prioritize, but also save money by avoiding unexpected, expensive repairs, and by ensuring your equipment is in optimal condition for efficient operation.

Request more information about an Equipment Risk Assessment.

What’s in an Equipment Risk Assessment Report?

A GEM Service Equipment Risk Assessment offers a wealth of information to help you make informed decisions about your HVAC equipment. The report includes:

  • Current condition of equipment: A detailed assessment of the state of your HVAC equipment, including its overall health and performance.
  • Current issues identified: A comprehensive list of problems and deficiencies that require attention, along with their respective severity and photos.
  • Cost to remedy current issues: A breakdown of the cost required to address existing problems, helping you allocate resources more effectively.
  • Impact of energy consumption: An analysis of how the identified issues affect your energy consumption, offering insights into potential utility savings.
  • Evaluation on whether to repair or replace equipment: Informed recommendations on whether repairing or replacing specific equipment is the most cost-effective solution.
  • Capital budget for repair and replacement: A practical tool that aids in long-term planning, helping you prepare for now and the future.

Download a sample GEM Service Equipment Risk Assessment Report.

How Will the Equipment Risk Assessment Benefit You?

  • Prioritizing Your Needs: The assessment report provides insights into the current state of your HVAC equipment, pinpointing issues, quantifying repair costs, and assessing their impact on energy consumption. This data-driven approach empowers owners and facility managers to make informed decisions on whether to repair or replace equipment, minimizing disruptions and preventing unnecessary expenses.
  • Annual Budgeting Insights: Having the results of the Equipment Risk Assessment will give you the insight needed to budget accurately, manage resources efficiently and avoid the pitfalls of neglecting crucial maintenance or making unplanned capital expenditures.
  • Help with Long-term Capital Budgeting: One of the most significant advantages of the Equipment Risk Assessment is its role in long-term planning. The assessment provides actual data and costs for the repair and replacement of HVAC equipment over a ten-year horizon. This comprehensive view of your HVAC system’s lifecycle allows for strategic planning and budgeting, reducing the financial stress associated with unexpected equipment failures.

The Cost of Doing Nothing

One of the primary reasons to consider an Equipment Risk Assessment is the high cost of doing nothing. Assuming that your HVAC equipment will continue to operate without issues can lead to expensive emergency repairs or even system failures. Waiting until a catastrophic failure occurs can be exponentially more costly than planning for systematic upgrades and repairs.

Here are several examples of situations the GEM Service team has encountered, and how the HVAC Equipment Risk Assessment helped resolve the issues:

  • A customer deferred replacement of a rooftop unit that was beyond its useful life, with the hope of avoiding the cost of replacement. With a major compressor failure happening in the summer and lead time for a new unit at eight to 10 weeks, the company was forced to make the repair, knowing that it was investing money in equipment that needed replacement. GEM Service conducted an Equipment Risk Assessment to provide a comprehensive understanding of the condition of all the facility’s HVAC equipment. The report had the financial data necessary to make informed decisions about replacing equipment.
  • The property manager of a prominent building in northeast Ohio had been informed by another contractor that it would need to replace a $20,000 compressor. Taken aback by the cost, the property manager asked GEM Service to conduct an Equipment Risk Assessment. The assessment revealed that the compressor was not the problem, and that a simple and affordable solution would resolve the issue. In this case, the Equipment Risk Assessment resulted in an equipment savings of $19,000.

To learn more about the GEM Service Equipment Risk Assessment, contact GEM Service:

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