Smart Buildings

“The Problem is the Disconnect Between Building Construction and Operation”

“If you look at the fundamental problem in the industry, there is really a disconnect between [building] construction and operation,” stated James Lee during a Memoori webinar last week. “Financial interest of developers, engineers and contractors are not really in alignment with long-term owners and occupants,” he continued. Lee believes this lack of transparency in the construction and operation phases results in a building’s long-term occupants not really understanding what they have and what the problems are. He believes this factor is eroding trust between vendors and customers in the industry. Despite identifying the problem, Lee believes that it’s not that easy to change. “It turns out that the profits in the existing business models are based on this dysfunction. In other words, the industry makes more money in a dysfunctional state than it does doing things the right way,” he told listeners. “For instance, facility management companies are often compensated on the gross operating […]

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