Box Hill Lilydale MSA

An abandoned TAFE campus in Melbourne’s outer east has been transformed into a vibrant and successful education setting with the help of an industry-first Managed Service Agreement between Box Hill Institute and A.G. Coombs.

Following its closure due to funding cuts in 2013, the former Swinburne TAFE campus at Lilydale lay dormant for three years until an agreement was reached in late-2015 for Box Hill Institute to re-open the facility.

Needing to reinstate deteriorating building services in readiness for more than 1,000 students enrolled in vocational and higher education courses, Box Hill Institute turned to A.G. Coombs Advisory to conduct a detailed asset management plan of the existing chilled water systems serving the Lakeside campus.

The plan provided a clear definition of the chilled water requirements for the major buildings on the campus.

It included a comprehensive condition assessment of the existing R22 chilled water systems and an outline of the options available to meet the long-term chilled water system operational requirements, in keeping with the sustainability aspirations of the Institute.

The assessment concluded that the condition of the existing chillers, coupled with the Institute’s proposed master plan for the site, meant significant upgrades and/or replacements were required to serve the new and future needs of the Institute.

The proposed works included replacing an existing chiller serving the campus’ Building LA with a new, high-efficiency air-cooled chiller, and creating a lead-lag arrangement with two existing chillers via chiller relocation.

This new configuration would address the lack of chiller system redundancy for the building, and introduced a duty and standby pump arrangement to ensure full cooling availability in the event of a pump going offline. It also addressed an estimated shortfall in cooling capacity for the northern section of the building.

The existing systems serving Building LB/LC were also targeted for replacement, with the existing rooftop air handling plant to be replaced by a chilled water unit alongside the upgrade of the pump and pipework systems.

As well as providing redundancy and better serving the cooling requirements of the building, the recommendations by A.G. Coombs Advisory would also mitigate the operational risk and increasing maintenance costs associated with the old R22 plant serving both buildings.

A proposed mechanical services scope of works, associated budget and programme was subsequently put forward.

Following Box Hill Institute’s acceptance of the recommendations in late September 2016, A.G. Coombs proposed a total turnkey solution that included the adoption of a Managed Service Agreement (MSA).

The MSA recognised the capital constraints of the Box Hill Institute, and provided a viable and sustainable, cost-saving procurement and financing solution for the proposed building plant and equipment upgrades.

The agreement included the design, procurement, installation, maintenance and ongoing operation of the new plant and equipment for a fixed term of 10 years. All responsibility for equipment risk and maintenance is carried by A.G. Coombs.

A key benefit of the MSA was that the works would require no upfront capital from the Institute.

Instead, the agreement was fully funded by A.G. Coombs, through financing partner Northquest, with the Institute required to make service payments over the fixed term maintenance service period. At the end of the term, the assets would be returned to the Institute reconditioned.

In late 2016, Box Hill Institute accepted the MSA and appointed A.G. Coombs Projects as head contractor to complete the chilled water system refurbishment works as recommended.

The project was delivered on time (within a 12-week period from construction to commissioning) and on budget, in readiness for student intake and the opening of the new Yarra Ranges Community Library in early 2017.

It is estimated the works will deliver energy savings to the Institute of up to $45,000 per annum.

The Managed Service Agreement put forward by A.G. Coombs has allowed us to focus capital expenditure elsewhere, and meet the vocational and higher education demands of students across Melbourne’s east and the Yarra Valley.

Winne Blackwell, Executive Director – Campus Modernisation at the Box Hill Institute

Project Overview

Project Name: Box Hill Lilydale MSA

Location: Box Hill - Lilydale Lakeside Campus, VIC

Client: Box Hill Institute

Year Completed: 2017

Project Type

Advisory, Design & Construct

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