CATEGORY
Commissioning Services
Building commissioning (Cx) is the process of verifying (in new construction) all or some (depending on scope) of the subsystems for building envelopes, building security, controls, co-generation, , electrical, fire/life safety, interior systems (like laboratory units), mechanical (HVAC), plumbing, sustainable systems
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Commissioning Services Industry Benchmarks
Savings Achieved
(in %)
The average annual savings achieved in Commissioning Services category is 8.10%
Payment Terms
(in days)
The industry average payment terms in Commissioning Services category for the current quarter is 59.6 days
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Category Strategy and Flexibility
Engagement Model
Supply Assurance
Sourcing Process
Supplier Type
Pricing Model
Contract Length
SLAs/KPIs
Lead Time
Supplier Diversity
Targeted Savings
Risk Mitigation
Financial Risk
Sanctions
AMEs
Geopolitical Risk
Cost Optimization
Price per Unit Competitiveness
Specification Leanness
Minimum Order Quality
Payment Terms
Inventory Control
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Commissioning Services market report transcript
Global Commissioning Service: Industry Outlook
- North America and Europe contribute to the major share of commissioning services, making up approx. 80 percent of this spend
- The APAC will be the active growing region, with a CAGR of 8 percent between 2018 and 2024. Australia and Hong Kong have well-developed building commissioning market, due to the increasing adoption of green building certification
- The commissioning service market for APAC is in the initial growing stage in some parts•Incentives and adoption of green building initiatives bolster the growth
Developed Regions
- North America: Being the largest spend region for these services, the demand for these services is bound to be stable until 2020
- Western Europe: This region has a high focus on commissioning services similar to North America, and hence, the demand is slated to remain almost stable until 2020
Developing Regions
- APAC: The percentage contribution of APAC regions will slightly increase from 15 percent in 2016 to 17 percent in 2020, and this will be driven by the countries in the South East Asian region, namely, India, Australia, etc.
- LATAM: This region is facing a slow growth rate, which is expected to continue up to 2020. The region is facing a slow growth rate, which is expected to continue for the next three years. The Brazil's construction industry is shrinking, while Argentina and Mexico continue to be the bright spots with better growth rate
Commissioning Services Outlook
- Increasing adoption of LEED certification and Energy Star ratings are driving the demand for building commissioning in the US
- Commissioning services in Canada are receiving a considerable boost on new buildings and retro-commissioning for the existing buildings
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The increasing inclination of consumers towards advanced technologies is projected to fuel the growth of the global building optimization and the commissioning market
Drivers and Constraints
Drivers
- Green Building Certifications (LEED, ENERGY STAR, etc.): Green building certification standards have been the primary driver
- Commissioning Awareness: Both official real-estate investors and property managers are gradually incorporating commissioning and green building processes into their standard functional procedures
- Per capita income: Rising per capita income of buyers and the technological progressions in construction and designing technologies are considered as the vital drivers
- Training services for building commissioning will expand the commissioning workforce by 2020
Constraints
- Misaligned Fringe Benefits: Commissioning offers indirect benefits to those who are responsible for paying the commissioning outlays
- Commissioning Cost: Whole building commissioning can add between 2 percent and 6 percent to the mechanical and electrical construction expenses of a project
- Labor Issues: Lack of skilled labor has been an ongoing issue during the past few years, and this issue still persists. Problems of replacing retired commissioning engineers and still exist as well as increasing retirements in the next 5 – 10 years