whole life cycle costings a financial forecast** with the exception of esd and tarasafe products....

Whole Life Cycle CostingsA Financial Forecast

Floors to match your imagination

G5921 Gerflor Environmental Brochure AW 28/4/06 4:43 pm Page 2

Taking care of precious resources protecting our legacy for

future generations


introduction to Gerflor

ten green reasons to choose Gerflor

what is Whole Life Cycle Cost Analysis?

Gerflor’s surface treatments

improving life cycle cost performance

whole life costings & payback periods

forcasted cost savings

maintenance cost comparisons

Gerflor’s unique open book whole life costing model

12

11

10

8

7

6

4

3

2

contents...


introductiontaking care of precious resources...

Taking care of precious resources

The construction industry has been under pressure for manyyears to produce economical buildings which offer value formoney, not only during the construction phase, but moreimportantly, during the full life of the building.

Attempting to balance between todays economic necessity andtomorrows demands has been difficult and on all too manyoccasions future generations have been left to pick up the bill.However, with modern technological breakthroughs andresponsible manufacturers investing in their development, thesituation is rapidly changing for the better.

In accepting our duty of care, not only to our customers, but also the wider community, Gerflor is committed to:

• reducing production costs • increasing the amount of recycled material used in production• improving the life span of our products • reducing the need for chemical cleaning agents• and finding safe disposal methods at the end of our

product’s life to ensure all parties benefit now and in the years to come.

Our aim, simply, is to provide durable and practical flooringsolutions which are easy and quick to install, easy to maintain andsimple and cost effective to recycle in the longer term.

Aesthetics, of course, play an enormous part in our developmentprogramme but, for us, beauty is more than simply skin deep.

...protecting our legacy for future generations

2


10 green reasons why Gerflor products offer exceptional value for money:

• All Gerflor products are manufactured from PVC which isproduced by reputable and accountable companies. PVC iscompletely inert and is widely used in medical and otherappliances which come in to close and direct contact with thehuman body because it is regarded as being such a safe material.

• Where possible, all Gerflor products include a proportion ofrecycled material – this practice not only reduces capital costs,but it also ensures the best use is made of all raw materials.Currently we recycle nearly 100% of all our production waste andare buying in recycled materials from other producers to meetdemand. We continually aim to increase the proportion of recycledmaterials used in the manufacture of our products.

• All Gerflor’s principal manufacturing plants are fully ISO 14001certified. All actively maximise water recycling, eliminate theemission of harmful toxins and the use of heavy metals andsolvents and continually seek to reduce the use of energy. Thiscontinual process contributes to the ongoing reduction in costs andincreases in efficiency.

• All Gerflor companies are actively involved in local studiesand schemes to help increase PVC recycling in the widerenvironment in keeping with the Vinyl 2010 initiative. Thetarget for 2020 is to recycle 10,000 tonnes per annum and theindustry is well on the way to achieving that goal.

• All Gerflor products have low VOC emissions. No Gerflorproducts are harmful to health either during manufacture,installation or maintenance.

• All Gerflor products can be expected to last for at least 20years when installed and maintained correctly* – theunnecessary cost of replacement due to poor product selection,installation or maintenance is the primary cause of excessive lifecycle costs – see selection chart on page 7, or contact Gerflortechnical support department for more information.

• All Gerflor products are supplied with a factory applied surfacetreatment to improve cleanliness and reduce the ongoing cost ofmaintenance.**

• All Gerflor products are water impervious and resistant to decay.

• All Gerflor products are either naturally bacteriostatic andfungistatic or have Sanosol® applied to inhibit the growth ofmicro-organisms and fungus.

• All Gerflor products are stringently tested and comply with thekey European standards: for slip resistance, static control, fireresistance, sound insulation, abrasion resistance, colour fastnessand chemical resistance.

* In accordance with the instructions published and updated by Gerflor’s technical department.

** With the exception of ESD and Tarasafe products.

achieving balance: economic needs….environmental demands…aesthetic ambiance

3


In broad brush terms this clearly illustrates that the cost ofmaintenance far outweighs the initial capital cost of a building.

Flooring is no exception, and it is for this reason that Gerflor hasbeen at the forefront in developing new materials and surfacetreatments which actively reduce the environmental and economicimpact of maintenance and repair.

Whole Life Cycle Costs are estimates of how a particular productwill perform throughout its life, ie from initial manufacture rightthrough to ultimate disposal expressed in monetary terms. This isdistinct from Life Cycle Analysis which express the costs in terms

of environmental impacts. Please refer to Gerflor’s Life CycleAnalysis brochure for this information.

Typically buildings are assessed using the model below.

Design

£ 3% £ 17% £ 10%100%Cost of

ownership

Build Operate Dispose Total

1 year 2 years 25 years

Run/maintain£ 40%

Repair£ 30%

PeriodicReplacement/

Refurbish

1 year Total

4

Building Cost ratio: Capital Cost Cost in Use 20% : 80%

Source.: “The long term costs of owning and using buildings” – The Royal Academy of Engineering (November 1998)

what is whole life cycle cost analysis?


However, the seemingly simple request for accurate WholeLife Cycle data is fraught with difficulties, and ultimately:

“Common sense must prevail... No two buildings are the same...figures must be used as a guide only and the estimator/evaluator[must] use “good judgement”, visual inspection, survey informationand local circumstances to form a view [of forecasted performance].”

The British Institute of Cleaning Science in their Guide to Standards,Specifications and Productivity Rates for Best Value in BuildingCleaning.

Other considerations which should not be overlooked:

1. There is no agreed, industry wide Whole Life Cycle model.Gerflor has opted to use the Whole Life Cycle Costing principaldeveloped by the Royal Institute of Chartered Surveyors, as webelieve it offers a simple and transparent methodology that takesaccount of the full “cradle to grave” financial costs of a productover its full life.

2. Traffic type and frequency. Is the space likely to be a high,medium or a low traffic area? Will the traffic be a constant floweg in a hospital or will the facility be used only during certain

times of the day or/and year such as in a school? Is there likelyto be wheeled as well as foot traffic? Will the flooring need towithstand static as well as dynamic loads?

3. Space Usage. What is the space being used for? Will the spacebe used for different purposes over the full term of the 25 yearcontract?

4. Location of the floor within the building – is the area in thecentre of the building or is it located at the entrance where dirt and grit will pose a problem? Will barrier matting always be in use?

5. Frequency and standard of cleaning. How frequently will thearea be cleaned? Clearly the cleanliness standards required in a hospital operating theatre will be more stringent than thosedemanded in a secondary school corridor – how will clean bedefined? Will the area be cleaned manually or by machine? Will emulsion dressings be required? Can the area be closed for cleaning?

6. Density of the floor area and loading – how much furniture willcleaners need to negotiate? Will the furniture need to bemoved? Does the furniture have wheels? How quickly will thefloor covering recover from indentations?

7. Wet areas – is the floor covering designed to withstandmoisture? How slip resistant will the floor be in 10, 15 or 20years time?

In reality trying to forecast at this level of detail is impossible andGerflor, in common with our competitors has tried to provideaccurate data based on the most commonly encountered scenariosseen in the real world.

However, caution should be taken when comparing the data asevery manufacturer (and indeed every client) inevitably usesdifferent parameters to present the life cycle outcomes.

The following whole life cycle analysis examples are based on datadrawn from average prices calculated by Patrick Michael Associates

(PMA) a specialist PFI whole life cycle analyst offering consultancyservices to many of the biggest names in UK constructionincluding: Kajima Partnerships Ltd, Ecovert Facilities Management(part of Bouygues group), Currie & Brown, James Nisbet andPartners, CapeX FM, Ashlar Partnerships, LLP and SMIF(Secondary Market Infrastructure Fund).

Gerflor can break this data down further to show the life cycle –cradle to grave typical costs for a high, medium and low trafficareas and by typical areas such as a hospital, university, secondaryor primary school and by surface treatment.

5


PU Good base for routine maintenance• Installation protection only• Hygienic smooth sealed surface• Low capital investment.

PUR Low maintenance regimecleaning costs reduced by up to 30%• Installation and initial use protection• Good cleaning characteristics• Spray cleaning may be sufficient in

many installations• High quality polish may be applied

as required.

PURProtect® Very Low Maintenance cleaning costs reduced by up to 50%• Excellent cleaning characteristics for

homogeneous products• Permanent “no polish” solution• Easy maintenance• Excellent life cycle performance• Reduced water and detergent consumption

during maintenance.

Protecsol® Very Low Maintenancecleaning costs reduced by up to 50%• Excellent cleaning characteristics for

multilayered/compact products• Permanent “no polish” solution• Easy maintenance• Excellent life cycle performance• Reduced water and detergent consumption

during maintenance.

Sparclean® Very Low Maintenance for Safety Products – up to 86% more easy to clean than non treated safety floors• Superior maintenance characteristics• Extreme resistance to soiling and staining• Life long colour and design• Light colours can be safely specified

anywhere• Slip resistance of R10.

Gerflor’s surface treatments

6

Actively reducing maintenance costs and the use of unnecessary chemicalcleaning agents


7

One of the most important issues in improving the life expectancyof any floor covering is choosing the correct material for the area.For example, no matter how good the carpet, it would be aninappropriate selection for a toilet or kitchen area. Similarly whilst astone floor might appear hard wearing, many are naturally soft and

porous making them unsuitable for use in high traffic areas or those when spillages are likely.If you require help with product selection, please contact any of Gerflor’s sector specialists or our Technical Department on01926 401500.

education, health, industry, retail, sport, housing

Homogeneous with PUUniversArchitecton

Products have a factory appliedpolyurethane treatment designed toprotect the material during installationonly. Emulsion dressings should beapplied prior to the product beingtrafficked.

Homogeneous with PUR

Mipolam Activa 250Mipolam Troplan 100Classic ImperialAmbiance

Products have a thick coating ofreinforced polyurethane applied to thesurface during manufacture. Thetreatment is designed to offer greaterprotection than the PU treatment andmay need emulsion dressings overtime subject to traffic levels.

Homogeneous with PURProtect® Mipolam Esprit 500Mipolam Elegance 290

This unique surface treatment forhomogeneous products eliminates the need for emulsion dressingsthroughout the entire life span ofthe product.

Multilayered with PUR

CreationArtlineAttractionGTINera ContractTransit

The PUR treatments applied to ourmultilayered range of products is uvcured and very robust. It activelyreduces the cost of maintenance.

Multilayered with Protecsol®

Saga Brazillia ForumMetallicaJamaica Taralay Impression

This unique surface treatmenteliminates the need for costlyemulsions and is applied to some ofthe most robust products within theGerflor range. All products benefitfrom 100% pure PVC wear layer.

Safety productsTarasafe Standard Tarasafe IonaTarasafe Super & Comfort

Untreated for maximum slip resistance.

Safety products with Sparclean® Tarasafe Ultra Tarasafe Style

Sparclean® is a revolutionary treatmentwhich improves cleaning by up to86%* when compared with untreatedsafety products.

* Source CAMRASO – Cleaning and Maintenance Research and Services Organisation

improving life cycle cost performance –choosing the correct product


Averageinstallation

Averagemaintenance

Replacementand disposal

whole life costings

8

£100.00

£0.00

£200.00

£300.00

£400.00

£500.00

Protecsol PUPUR TarasafePURProtect Sparclean

Ster

ling

€100.00

€0.00

€200.00

€300.00

€400.00

€500.00

€600.00

Protecsol PUPUR TarasafePURProtect Sparclean

Euro

s

Average costs of installation, maintenance and replacement disposal per sqm over a 25 year contract


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Curr

ency

per

sqm

Protecsol treated Brazilia

PUR treated Mipolam Activa 250

PUR Protect treated Mipolam 290

PU treated Univers

Protecsol treatedBrazilia – 5.7 years

PUR treated Mipolam Activa250 – 9.9 years

PURProtect treated MipolamElegance 290 – 8 years

addi

tiona

l ca

pita

l cos

ts

addi

tiona

l m

aint

enan

ceco

sts

forecasted payback periods for additionalcapital expenditure from savings inmaintenance costs

Year 1 Year 2 Year 3 Year 4

Non treated Tarasafe standard

Sparclean treated TarasafeCurr

ency

per

sqm

Sparclean treated Tarasafe – 2.2 years®

addi

tiona

l ca

pita

l cos

ts

addi

tiona

l m

aint

enan

ceco

sts

9

Payback periods calculated versus Gerflor’s PU treated Univers

Payback periods calculated versus Gerflor’s standard non-treated Tarasafe



PURProtect treated Mipolam Elegance 290

Protecsol treated Brazilia Sparclean treated Tarasafe

Ster

ling

£0.00

£50k

£100k

£150kMedium traffic

Low traffic

High traffic

Source: Patrick Michael Associates study into Gerflor’s surface treatments. All figures are based on Gerflor products being installed and maintained in accordance with the recommendations published by Gerflor’s Technical Department

The savings shown are those forecast for maintaining 2000 sqm over a 25 year contract note: all savings are calculated relative to Gerlor’s PU treated Univers or Tarasafe standard in the case of Sparclean treated products


PURProtect treated Mipolam Elegance 290

Protecsol treated Brazilia Sparclean treated Tarasafe

Euro

s

€0.00

€50k

€100k

€150k

€200k

Medium traffic

Low traffic

High traffic

£

£

10


PURPURProtect SparcleanTarasafeProtecsol

£0.00

£250.00

£500.00

High traffic Medium traffic Low traffic

PU

£0.00

£250.00

£500.00

PURPURProtect SparcleanTarasafeProtecsol

£0.00

£250.00

£500.00

High traffic Medium traffic Low traffic

PU

€0.00

€400.00

€800.00

The cost comparisons are those forecast per sqm over a 25 year contract

By installation type

By traffic areas

PURPURProtect SparcleanTarasafeProtecsol PU

£0.00

£200.00

£400.00

£600.00

Average installation Average hospitalmaintenance

Average University/HE college maintenance

Average secondaryschool maintenance

Average primaryschool maintenance

Average replacementand disposal

PURPURProtect SparcleanTarasafeProtecsol PU

Average installation Average hospitalmaintenance

Average University/HE college maintenance

Average secondaryschool maintenance

Average primaryschool maintenance

Average replacementand disposal

€0.00

€200.00

€400.00

€600.00

€800.00

11

Source: Patrick Michael Associates study into Gerflor’s surface treatments. All figures are based on Gerflor products being installed and maintained in accordance with the recommendations published by Gerflor’s Technical Department


12

“It is important to understand that future decisions cannot be madesolely on the basis of quantified information. When interpreting andapplying data and information; judgment and experience must equallybe applied to produce well informed decisions. It is also vitallyimportant to calculate cost data using the correct balance ofestimating first principles, relevant project experience, accurate androbustly sourced data, accurate benchmark measures and bestpractice principles and to ensure this data is obtained through like forlike methodologies by competing companies.” Steve Donelan Director Patrick Michael Associates

First Principles Governing Gerflor’s Whole Life Cycle Model

The main aim of the model is to provide a level playing field toensure our customers can make informed decisions.

We have also taken the care to use real life scenarios and to gleanour data from live projects. Occasionally for sake of clarity we havechosen to simplify real life – for example, we have consistentlyassumed a full flooring replacement at year 20 when in reality weaccept that this is more likely to be a phased operation.Nonetheless since our products would be perfectly usable up toand even beyond year 20*, we feel this gives an accurate forecastof the products expected performance.

Assumptions embedded within the forecasts:• All maintenance prices quoted are based on a 2000 sqm area

excluding VAT. Prices include provisions for initial/installationmaintenance where applicable, routine (daily/spot maintenance),periodic maintenance (regular heavy clean, and deep cleaning asappropriate and include skirtings as well as floors.

• Installation prices are based on those prevailing on averagethroughout the UK in February 2006. Prices quoted include:labour, nett cost of product, wastage, consumables e.g.adhesives, weld rod, overheads and the profit charged by theflooring contractor. Costs for levelling compound have beenexcluded as it is not necessary for all projects – particularly new build.

• Replacement price is based on the installation price plus the safe disposal price prevailing on average across the UK inFebruary 2006.

• Inflation has been calculated at zero to allow financial forecasters to apply the agreed rate for the contract.

• No contingency margin has been included to allow forecasters to use their own rates.

• All products are selected correctly for the area specified – seepage 8 for help with product selection.

• All products are maintained in accordance with Gerflor’sinstallation and maintenance guides and will be replaced at year20 of the contract.

• There are clear differences in performance and cleaningrequirements for heavy, medium and low traffic areas and forhospitals, universities/colleges, secondary schools and primaryschools.

• The maintenance costs are based on the following 2005benchmark data: British Institute of Facilities Management (BIFM),RICS Cost Data and cross checked against the following realprojects, Sheffield Hospital PFI, Brentwood Community HospitalPFI, RACH, Brighton (Children’s Hospital PFI), Lymington HospitalPFI, Merton Schools PFI, Lewisham Schools PFI, Oldham SchoolsPFI, UPP University PFI Projects (specifically AccommodationSchemes).

• Life Cycle Costing Data for Gerflor’s entire product range can besummarised under the findings of seven main product groups:

• Homogeneous with PU• Homogeneous/Multilayered with PUR• Homogeneous with PURProtect®

• Multilayered with Protecsol®

• Safety products• Safety products with Sparclean®

Please see page 7 for a summary of Gerflor’s product range bysurface treatment.

Other sources used for referenceBMI Building and Maintenance Price Book 2004 24th Editionpublished by BCIS a trading division of RICS Business services.

A Guide to Standards, Specifications, and Productivity Rates forBest Value in Building Cleaning published by The British Institute of Cleaning Science.

* Assuming our floor coverings are maintained in accordance with the instructions published and

updated by our Technical department.

Gerflor’s unique open book whole life costing model


13

For further informationregarding Gerflor’s

commitment to sustainabledevelopment...

please contact our sample service on+44 (0) 800 264 7581


UK reference – April 2006

CI SfB

(43) (Tn6)

HEAD OFFICEGerflor Ltd

Wedgnock HouseWedgnock Lane – Warwick CV34 5AP

Sample Service:

Tel: +44 (0)8702 647 581

United Kingdom:

Tel: +44 (0)1926 401 500

Fax: +44 (0)1926 401 647

e-mail: [email protected]

IRELANDTel: +353 42 96 61431 Fax: +353 42 96 61759

E-mail: [email protected]

www.gerflor.co.uk

Cop

yrig

ht G

erflo

r pr

inte

d M

ay 2

006

w

ww.w

ater

mar

kdes

ign.

co.u

k

This brochure is made from 100%recycled paper “Cyclus Print”


whole life cycle costings a financial forecast** with the exception of esd and tarasafe products....

Documents