Making The Most Of Your Capital Budget

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Capital budgeting is the planning process used to determine whether an organization’s long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm’s capitalization structure.

How To Prioritize Projects

Capital budgeting is a difficult task for any business. Prioritizing projects is challenging and an upgrade could benefit any part of a building structure.  If you own a large building, it’s crucial to have adequate lighting for the safety, aesthetic and efficiency of your building. When it comes to prioritizing your next upgrade consider lighting as one of your options.

When To Start Planning

Planning can start when you feel comfortable with your budget and have a good idea of what you want the results to be. Once you have selected an area you wish to upgrade you can set a price point, look at contractors and look at different materials needed for your project.

Evaluating Quotes

When evaluating quotes, keep in mind that these are just estimates and can be too low or too high. Be cautious of quotes that seem too high or too low. Saving money is always great, but cutting corners to save costs could result in fees to fix the mistakes later on. Have a good idea of what the price should be at so you don’t get overcharged.

Choosing The Right Contractor

When it comes to choosing a contractor, you want to make sure they have a good reputation and customer reviews. You want to select someone easy to communicate with and who is open with you throughout the process.  It’s also essential to choose a contractor who has expertise working in the area you are trying to upgrade.

Relumination is committed to reducing overhead costs, saving electricity, minimizing facilities management expenses, and helping decrease environmental footprints. Consider us for your next interior or exterior lighting upgrade. Contact us to start planning for next year’s budgets.

A Commercial Retrofit Is a Long Term Investment; Plan Carefully

Since most high-quality LED fixtures are rated for 250,000 hours or 20+ years of continuous 24 hour use, building owners considering a commercial lighting retrofit should realize that they are investing for the long-term.  A properly done LED retrofit requiring minimal or no maintenance will stay in place more than a decade.  Rather than relying only on the initial cost of fixtures and installation to evaluate return on investment, owners and managers should calculate the cost of ownership over the entire life of the project.

Of course, payback periods differ depending on what you are retrofitting.  For instance, changing from incandescent lighting to LED fixtures can result in a payback period less than a year.  On the other hand, retrofitting fluorescent tube fixtures with LED tubes takes a two-year payback while switching from fluorescent fixtures to LED tubes may provide a three-year payback.  Rebates and other incentives can lessen these payback periods.

Likewise, the quality of the site visit, the proposed layout, installation and customer service plan are more significant for LED retrofits than for metal halide or fluorescent retrofits requiring maintenance every 2-3 years.  While an LED retrofit doesn’t last forever, it comes close and deserves the extra care.

Considering LED’s longevity, it’s important to identify the right LED product for the project, such as LED color which varies from a very bright blue suitable for parking lots to a medium blue for an office setting and perhaps a warmer range for break areas.

Although return on investment accelerates when companies capitalize on funding opportunities, the funding process is often complex with many requirements including submitting the correct form at the right time and specific inspection criteria.  Choosing a company experienced in working with utilities and other funding agencies, really streamlines the funding process.  In addition, utilities often require that a participating contractor be in the loop to obtain funding for a building retrofit.

To optimize the return on a commercial lighting retrofit, building owners and managers should work with a partner who stays up-to-date with the latest advances in LED products and who is proficient in sourcing rebates. We’d like to share our expertise with you.  Please contact us for more information.