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XYZ, inc. Business Discussion June 1, 2000 ABC Design, Inc.

XYZ.com, inc. Business Discussion June 1, 2000 ABC Design, Inc. Agenda. Opening remarks ABC Design, Inc. Background Organization Business highlights Keys for success Financial drivers and goals Creative solution examples Construction process approach

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XYZ, inc. Business Discussion June 1, 2000 ABC Design, Inc.

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  1. XYZ.com, inc.Business DiscussionJune 1, 2000ABC Design, Inc.

  2. Agenda • Opening remarks • ABC Design, Inc. • Background • Organization • Business highlights • Keys for success • Financial drivers and goals • Creative solution examples • Construction process approach • Project approach for XYZ.com, inc. • Questions

  3. Purpose Provide an overview that supports ABC Design as the preferred consultant for XYZ.com, inc.

  4. ABC Design, Inc. ABC Design, Inc. • Vision • History • Organization • Business highlights

  5. ABC Design, Inc. ABC DesignVision ABC Design will be the leader in understanding and meeting its customers construction and building design needs through exceptional people, processes, and design concepts.

  6. ABC Design, Inc. ABC DesignMission

  7. ABC Design, Inc. ABC DesignHistory • Began as ABC Company in 1913 • Grew into design and construction management businesses • Now operate three divisions in five states • 1300 employees • $232 million annual sales

  8. ABC Design, Inc. ABC DesignOrganization • Design Division • Construction Management Division • Commissioning Division • Recognized as leaders in medical office buildings • Specialize in productive work environments and “green building design”

  9. ABC Design, Inc. ABC DesignBusiness Highlights • ASHRAE Building Technology Award - Camden Office, 1998 • Energy Star Building Label - Floorscope, 1999 • Engineering Firm of the Year - Texas, 1991

  10. Is well positioned to support you: • Organization • Personnel • Experience • Knowledge ABC Design, Inc. ABC Design • Value

  11. Financial value and increased profits • Creative solution examples • Construction process approach Keys for Your Success

  12. Financial Value and Increased Profits • Productivity • Total cost of ownership

  13. Visible Costs (Price of HVAC) Financial Value and GoalsTotal Cost of Ownership Price CFC Issues Energy Costs Equipment Shutdown Costs Engineering Charges Legal Costs Maintenance Costs Construction Change Orders Performance Problems Start-up Delays Indoor Air Quality Hidden Costs (Cost of Obtaining Comfort)

  14. Financial Value and GoalsTotal Cost of Ownership Which components are included? • To properly optimize cost, identify and understand all the components • These could include: • Design & construction • Energy • Operation • Productivity • Risk • – Equipment & materials • – Maintenance • – Disposal • – Finance • – Other

  15. Financial Value and GoalsProductivity Total Cost of Ownership Values Productivity - Value of Productivity Gain: Average annual employee salary/benefits: $40,000 Average square foot per person: 100 Employee cost/sq ft: $400 2 to 20% productivity loss/gain value:$8 to $80/sq ft,annually Entire mechanical design fee: $0.10 to $0.54/sq ft,one time only

  16. Financial Value and GoalsTotal Cost of Ownership How do we solve it? • A comprehensive approach • Position the outcome - value productivity • ABC Design has the expertise to conduct this analysis • It’s a huge return on your investment !

  17. Financial drivers and goals • Creative solution examples Enhance XYZ.com, inc. value: • System design • U.S. EPA ENERGY STAR programs • Building automation • Mechanical opportunities • Other opportunities Keys for Success

  18. OperatingCost FirstCost Creative Solution Examples What if there were a comfort system that …

  19. Emissions Sound levels Creative Solution Examples … and that did this too?

  20. Creative Solution ExamplesImagine a system with ... • Lower total cost of ownership • More usable floor space • Quieter operation • Better indoor air quality

  21. Creative Solution ExamplesWhat are the Advantages? • Lower first cost • Lower operating cost • Requires less floor-to-floor height • Improves the comfort and IAQ • Better acoustics • Opportunity for recognition • Good for the environment = good for the business

  22. Creative Solution ExamplesEnhance XYZ Client Value • System design • U.S. EPA ENERGY STAR programs

  23. ENERGY STAR Buildings • ENERGY STAR Building Label Creative Solution ExamplesU.S. EPA ENERGY STAR Programs

  24. Creative Solution ExamplesU.S. EPA ENERGY STAR Programs A high return, low risk investment ... Annual Average Return 40% 30% 20% 10% Small Company Stocks Common Stocks Long-term Corp Bonds U.S. T-Bills 0% 10% 20% 30% 40% Risk Index(year-to-year volatility) Source: The Vanguard Group

  25. ENERGY STAR Building Label “We’ll get you there... ...or make significant improvements” Creative Solution ExamplesU.S. EPA ENERGY STAR Programs Energy Performance Score 75 100 STRATEGY GOAL

  26. Financial drivers and goals • Creative solution examples • Construction process approach Keys for Success

  27. Construction Process Approach Enhance XYZ.com, inc. value • Traditional Approach • Team Approach

  28. Time & Dollars Saved Team Partnering Utilizing Open Design Approach Initial Studies Basic Design Detail Design Commissioning/Pre-Construction -> Services Construction Final Cost Determined Initial Design Basic Design Detail Design Bid Construction If over budget — redesign and re-bid Construction ProcessApproach Traditional Plan & Spec Approach

  29. Investment to Increase Your Value$100 per square foot story • Put design fee in perspective ...

  30. Financial Drivers and Goals$100 per square foot story 10% preference paid for design fee$0.030/sq ft Mechanical cost$6/sq ft Mechanical design fee$0.30/sq ft Whole building cost$100/sq ft

  31. ABC Design, Inc. Past projects here in Pleasantville, USA: • Metropolitan I • Metropolitan II • St. Joseph’s Medical Office Complex

  32. XYZ.com, inc. XYZ.com Technology Office • Design and construction needs ... • Relationship expectations ...

  33. Next Steps ? • Jobsite visit • Company visit • Further explore project • Initiate smaller project • Other ideas

  34. ABC Design, Inc. Business Discussion Summary • Markets, businesses, and construction practices are changing • Enhance your value through a variety of options • ABC Design & partnering • Next steps just discussed ...

  35. Questions/Comments? • ABC Design, Inc. ? • Past projects ? • Experience ? • Construction management team ? • Your technology center ? • Other ?

  36. THANK YOU !!!

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