At Beringar, we realised from the very start that the benefits of smart technology in real estate were a combination of quick wins, medium term returns and long term transformations. That's why we launched our sensors as a service model last May. Today, it seems Siemens want to go further to offer their clients a way to procure entire smart buildings as a service, either as new builds or by retrofitting existing buildings. This is an exciting development, especially if backed by a major corporation with deep pockets.
It does, however, throw up a number of important questions, some of which can be answered by the experiences of public-private partnership or public finance initiative projects (PPP/PFI). In these projects the private sector make a return for the transfer of risk of developing infrastructure on behalf of (usually) public sector clients. The contracting process is long, expensive and complex, but the results are a risk free high quality building from which to operate for up to 25 years. One of our co-founders, Paul Byrne, has 15 years experience in this market and is one of the UKs foremost experts on modelling this type of deal. At the end of the day, it breaks back to a complicated financial model that spells out the risk and reward for each party to the contract.
We would love to see some of the great tools created to manage PPP/PFI contracts be applied to smart building procurement - this such as clear payment mechanisms and comparators studies. These would allow more transparency and enable all concerned to see you the huge upside to going smart.
We stand ready to help. Waiting for your call Siemens 😀