Turn an HVAC failure into an asset decision
Use ISO 55000 asset-management principles to compare repair and replacement decisions.
A medical office chiller has failed twice. Repair costs $380K and is expected to last 3 years. Replacement costs $1.45M, cuts energy cost by $95K per year, and materially reduces outage risk for a key tenant paying $1.9M annual rent. Lifecycle value = upfront cost + risk cost + operating cost + tenant and valuation effect The common trap is approving the lower invoice without pricing outage risk, tenant retention, and useful life. Step 1 Repair case: Upfront cost = $380K Useful life = 3 years Known issue = repeated outage risk The repair saves cash today but keeps the…
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