Financial Modeling

Asset Efficiencies For The Long Haul


McKinstry’s Total Cost of Ownership (TCO) service is a proprietary decision-making platform that evaluates the direct and indirect financial, environmental, and human impacts made by design decisions.

McKinstry’s financial modeling services are a combination of industry-experienced consulting and technology. By estimating design effects on first costs, building operational budgets, long-term capital expenditure forecasts, and other human factors, McKinstry offers its clients and design partners a whole new approach to cost assessment, design decisions, and financing strategies.

 

Program Services

McKinstry works with clients and design teams to quantify expectations for completed facilities in terms that match a client’s business assumptions, including preferences and requirements for productivity, operational staffing, and flexibility to alternative operational scenarios. The model then evaluates design options, including first cost, operating costs, capital expenditures, LEED® costs/benefits, human factors, risk, and productivity. We also perform cost assessment to reflect client accounting practices around cost of capital, inflation assumptions, depreciation, and expected resale or write-off of assets – so results are tailored to actual business practices.

No other service on the market combines complex analytical technology with nearly 50 years of real world design, build, operate, and maintain (DBOM) experience to deliver a comprehensive, long-term analysis of the choices available to you. Multiple scenarios can be compared to see how they score. We can provide both global analysis and granular subcomponent design evaluations.

The results? Confidence in your decisions. Unmatched risk avoidance. Superior facilities.

 

Approach

Proven Processes. Meticulous Execution.

The Total Cost of Ownership service follows these rigorous steps to create a comprehensive TCO model for your project:

Draft Model Creation

We consult with you and set up the TCO model to include the operating and financial assumptions you already use to manage your business. We work with you to understand your goals for the new or renovated facility. We use these to later evaluate how well the planned facility meets your original objectives. With your performance goals as a basis, we create a financial model that addresses benefits like the value of increased productivity, flexibility to new programming, or increased capacity.

Benchmarking

We feed the model with current system and utility benchmarks in order to effectively ascertain operational and life-cycle costs. New construction has no historical data to rely on, so in order to obtain accurate inputs, McKinstry collects industry benchmark data through our membership in associations such as BOMA and IFMA and leverages information we gather from the more than 100 million square feet of real estate we manage nationwide.

Evaluation

We evaluate the major design concepts and enter them into the model to test their impact on overall life-cycle costs and benefits.

Component Analysis

Once the major design concepts are selected, we can examine component choices in rapid revisions. These small, iterative test runs provide feedback on key decisions and emergent issues as the comprehensive design progresses.

Final Design and Plan

At this stage, the McKinstry team documents the final design variables and decisions. We collect the data from our tests of various hypotheses and provide you with a trade-off analysis. We also document the operating assumptions that led to selecting the optimal design, as they are essential to formulating an optimized operations plan and evaluating future operational performance.

 

Innovation

Continual Pursuit of Better Solutions for our Clients

McKinstry not only excels at innovative design and engineering, we integrate in-house evaluation, design, energy modeling, and implementation. McKinstry further maximizes your investment by optimizing grants, providing utility incentives, and facilitating heavily subsidized financing that provides significant bottom-line impacts to your organization. Our DBOM mentality drives us to consider the whole picture – from concept to construction, commissioning, transition to stabilized operation, and ongoing facility maintenance. We are there For the Life of Your Building.

 

Benefits

  • Enhanced building efficiency
  • Complete component analysis
  • Complex analytical technology combined with nearly 50 years of real world design, build, operate, and maintain experience.

Government

McKinstry works with many government entities, always with the aim of protecting their budgets and helping them save resources for their communities. View projects >

Healthcare

McKinstry is a major player in helping create safe, efficient, and attractive healthcare environments. View projects >

Biomass

McKinstry is a powerful partner in renewables, delivering turn-key energy source solutions. We implement long-term energy solutions for your community or organization. View projects >

Project Sectors

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Vision

Together, building a thriving planet.

Mission

Taking responsibility to efficiently develop, engineer, deliver and operate the built environment.