Implement the project

Finance:

“Skanska drew on the company’s vision and local expertise to refurbish their UK headquarters at Maple Cross in Rickmansworth into an energy efficient office. Skanska financed the capital works for this project itself, and used net present value to evaluate payback. The refurbished office reduced operational costs by 39 percent and carbon emissions by 48 percent, with a ROI of approximately 10 years. The project included the installation of a biomass boiler, a 340m2 PV system, LED lighting throughout, BMS modifications and improvements to the buildings ventilation system. The energy enhancements have been prioritized according to ROI and annual savings are monitored through an externally verified Measurement and Verification Plan.

Skanska can also confidently provide EPGs (Energy Performance Guarantees) and EPCs (Energy Performance Contracts) for the buildings it develops and constructs for customers. One example of such a project was a Department of Energy and Climate Change (DECC) refurbishment contract whereby Skanska was contracted to reduce energy use by at least 14.6 percent with a payback period of less than 12 years. The project was completed in 2014 and included Building Management System upgrade and LED lighting installation in two offices.

Skanska worked with its landlord to fund the refurbishment of Hollywood house in Woking. A wide of environmental improvements were agreed for the building, these were assessed and the funding apportioned between tenant and landlord according to which party realized the benefit. As tenant Skanska received the return on its investments through discounts or rebates on the building service charge and energy bills.”

Continuous commissioning

Skanska aims to continuously improve the energy performance of its refurbished Hollywood House office in the UK. A Green Building Management System was installed on both Skanska’s floors, which is connected to the building’s BMS. The system is further improved energy efficiency by between 2 and 5 percent in the first 12 months of post-refurbishment occupation by fine-tuning the BMS.

Skanska implemented a ‘soft landing’ approach into the entire evaluation, design, construction, commissioning and handover phases of the Hollywood House project to raise awareness of the building’s efficiency features among the building’s owners and occupants. The approach is intended to promote more efficient occupant behavior and the effective operational management of sustainability-related technical solutions. The Green energy display is shown on both the Skanska floors in Hollywood House and is intended to raise awareness of resource usage and occupant behavior to make further energy savings in the future.

Stakeholders

“Skanska UK was able to cooperate with its landlord to enter into a Green Lease for its offices in Hollywood House, Woking, UK. The lease incorporates a Memorandum of Understanding (MOU) that encourages all occupants to work in collaboration to improve the overall environmental performance of the building. This will be managed by a Building Management Committee made up of tenants and managing agents. The committee will meet on an annual basis to share energy, water consumption and waste data, and formulate objectives for an environmental management plan. (The MOU also includes specific green interventions, which were implemented during the retrofit, for example, PVs, connection to district CHP, heat metering on Skanska floors, etc)

In many cases, influencing a landlord’s green thinking is a challenge for tenants of multi-occupancy offices. With Skanska UK’s Mechanical and Electrical (M&E) division lease expiring, the landlord was approached with plans to maximize both the economic and environmental performance of Hollywood House. Radical ideas would help to dramatically improve the entire building’s energy efficiency, water use and waste performance.

The owner of Hollywood House realized the potential to attract new tenants and protect the future value of their asset. Recognizing the international letting potential of the offices, the green retrofit was conducted to LEED standard rather than the BREEAM certification, which is more widely used in the UK. As a result of the US$ 5.4 million (SEK 36 million) refurbishment, the previously energy inefficient vanilla (according to the Skanska Color Palette™) 1980s office building was awarded with the highest LEED Commercial Interiors (CI) Platinum score for a UK fit out at the time of completion – 96 points. The result for the building owner is a desirable property where its green credentials are now used as the main sales message to prospective tenants. Skanska since signed a new 10-year lease. The energy investments alone have an estimated payback of 12 years for the landlord, but experience suggests that this is likely to reduce as the occupants and owner become more familiar with the improvements. Hollywood House won Refurbishment Project of the Year (value up to £5m) at The Chartered Institution of Building Services Engineers (CIBSE) Building Performance Awards in February 2014.

Energy efficiency measures included the connection to the district combined heat and power network, ventilation system modification, real-time energy monitoring and control systems, CO2 monitoring, roof-mounted PV installation, efficient lighting, floor slab insulation, solar window shading, enhanced Building Management System (BMS) functionality and central power-off function for non-critical equipment. Decisions on energy efficiency measures were based on their business case and ROI, which was linked to the client’s aspirations and other available funding, such as government incentives.

After two years of occupation, the renovation has reduced the building’s energy demand by almost 50 percent, and resulted in annual energy cost savings of US$ 36,000 and a carbon emission reduction of 58 percent (as per the CIBSE award).


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