The case for building optimisation: act now to reduce costs and deliver value

With rising energy costs, mounting pressure to meet sustainability targets, and growing expectations from stakeholders, the case for acting now has never been stronger.

What is building optimisation?

Building optimisation refers to the process of improving the performance of building systems, such as heating, cooling, lighting, and ventilation, to reduce energy use, enhance occupant comfort, and lower operating costs. These are usually relatively simple, low or no cost measures which can often yield energy savings of up to around 30%, if implemented effectively.

Some common issues that we come across include: plant operating hours which do not align with demand, faulty control valves resulting in wasted heating or cooling in air handling unit coils, variable speed drives on fans and pumps set to constant speed in systems designed to accommodate variable flow, lack of sequence control in boiler operation, low temperature hot water return temperatures that are too high to allow boilers to operate in condensing mode, and simultaneous heating and cooling between air handling units and terminal units, or between adjacent fan coil units. Implementation of some remedial measures will require a careful review of the system to ensure there will be no adverse impacts on operation.

Why you should act now

Delaying optimisation means missing out on tangible benefits that directly impact the bottom line and stakeholder satisfaction. Building optimisation isn’t just about saving energy – it’s about delivering value across the board:

1. Immediate cost savings without major capital investment

Energy is one of the most significant controllable expenses in commercial buildings. Regardless of asset-level Net Zero targets, optimisation can often deliver rapid reductions in energy consumption with excellent payback, often within a service charge cycle.

2. Prioritise building tune-ups over capital works

Optimising controls often can – and should – be done in advance of any major plant replacement works as part of a staged building performance upgrade strategy. This approach ensures that existing plant and controls are utilised to their full operational potential before being replaced, either at end-of-life or when they demonstrably lack the functional capabilities required to meet current performance standards and occupier expectations.

3. Improved asset value and occupier expectations

Efficient buildings are increasingly sought after by tenants, investors, and buyers. Optimisation improves performance, enhances comfort, and reduces operating costs – boosting asset value and market appeal. The growing demand for disclosure of NABERS ratings reflects this shift toward performance-led decision-making.

4. Regulatory push and pull

With tightening regulations around energy performance and carbon emissions, acting now helps future-proof assets and avoid costly compliance risks. Public disclosure under ESOS can also act as a driver to act. Recent changes to the rules on service charge recovery for landlords allow for greater flexibility in recovering costs for projects with good economic paybacks.

The right approach to optimisation is crucial

While Net Zero audits may highlight optimisation opportunities, a deeper dive is often beneficial to unlock deeper efficiency gains. Approaches can range from targeted site audits, to non-centralised monitoring solutions, through to advanced solutions using smart BMS-integrated platforms with automated fault diagnostics and data analytics, combined with technical support to site facility and maintenance teams to help prioritise and implement identified actions.

Design for Performance is the gold standard for new builds and major refurbishments in tackling the performance gap, and some of the core DfP principles can also be applied to smaller scale projects in existing buildings to maximise a building’s performance potential. The first thing to check is whether the HVAC and lighting control strategy is clearly documented. And then whether it is being implemented correctly. Once the controls are working in line with the design intent, the potential to further improve system efficiency should be assessed.

There is no one-size-fits-all strategy, with the right solution dependent on building type and servicing. However, the process of optimisation should always be iterative: the use and operation of buildings evolves over time, so controls should be reviewed regularly to ensure they keep pace with this.

Getting the basics right

For many of our clients, understanding building energy consumption is often the first hurdle, so getting the metering and sub-metering right is critical. But collecting the data is only the first step – interpretation of the data on a regular basis is needed to understand the scale of the building’s improvement potential and, beyond this, to generate deeper insights into performance.

The value is clear and the time to act is now

Building optimisation is a powerful lever for cost reduction, carbon savings, and stakeholder value. Whether you’re managing a single site or a portfolio of properties, optimisation offers fast, measurable returns that align with both commercial and strategic goals.

By Bethan Phillips, Associate Director at Verco