Top Problems Related to the Technical System Across Project Lifecycle

For property management units, the phase of project handover from developers plays a vital role and directly impacts the efficiency of operations. However, during this phase, they face various challenges, primarily related to technical systems.

For example, incomplete technical system information provided in handover documentation can lead to delays in implementation. Obstacles and incidents during operation will become difficult to handle. The design and installation process may not fully consider all aspects related to operation or project functionality, resulting in problems when put into practical operations.

Our experts will analyse potential issues related to design and operation of technical systems across project life with three phases: construction, pre-opening, and operation. This division is based on the development and refinement of technical systems, helping developers operate the project efficiently and cost-effectively.

1. Construction phase

This phase is when developers make decisions regarding the design of technical systems, including physical infrastructure and M&E systems.

The physical infrastructure system comprises fixed structures (foundations, pillars, walls, roofs, etc) as well as interior and exterior components (doors, staircases, windows, floors, walls, etc). The M&E system is responsible for providing energy to the building and includes electrical systems, HVAC systems, firefighting, water supply and drainage systems, and wastewater treatment.

Some M&E systems are often concealed inside the walls and floors, requiring careful planning for the design and installation. This helps optimise costs and facilitates post-handover operations and maintenance. Once the technical systems are finished and handed over, proposing modifications or improvements to enhance efficiency becomes challenging and costly.

Problems that can be encountered during this phase include:

Inappropriate selection and installation of M&E systems

Risks related to M&E systems may originate from architectural or construction agents failing to consider operational factors, leading to various technical problems when they are put into practical operation.

For example, office projects aim to install HVAC system with lower capacity than the building's requirements to save initial investment costs. However, this inadvertently leads to operational pressures and cost overruns. The building's temperature becomes unstable, affecting tenant's experience. Furthermore, to meet demand, HVAC system needs to operate at a higher capacity than its design capacity, resulting in higher maintenance costs.

Developers need to regularly update legal regulations to ensure the safety and sustainability of the technical systems (such as TCVN 3890:2023 on fire prevention and firefighting for buildings, and TCVN 6396-28:2013 on the structure and installation of elevators). To ensure that the design and installation of technical systems are appropriate and optimised for future operations, the t construction phase should involve a professional, experienced unit specialising in consulting and managing various types of projects.

Learn more about our Design and Technical System Assessment Package.

Limitations in the design of technical systems lead to difficulties in later adjustments

Updating market trends and proactively changing development strategies will bring long-term benefits to developers.

In recent years, green building has become a prevalent trend in real estate. A 2020 study by Green Street Advisors revealed that green buildings have better occupancy rates compared to less sustainable projects. The shift toward sustainability also brings various positive values, such as enhancing the project's reputation and optimising long-term operational costs.

Additionally, in this era of rapidly advancing digitisation, the development of smart buildings has gained significant attention. Smart buildings not only help optimise energy costs and improve security and safety but also create a convenient and modern living and working environment.

However, a subpar technical system that does not meet quality standards can present challenges during the digitisation or renovation of existing projects into green buildings.

2. Pre-opening phase

The entire technical systems of the building have been completed in the pre-opening phase. During this phase, some problems related to design assessment, acceptance, or repairs may arise.

Prolonged design assessment and approval of the firefighting system

In terms of technical design, according to Article 78 of the Construction Law and Decree 59/2019/ND-CP, 20-level and taller buildings must directly submit appraisal dossiers to the Department of Construction Activities Management located in Ha Noi. Since this office receives applications from all over the country, the approval process can be prolonged, affecting projects' operational schedule.

In terms of firefighting system, in some projects, developers subcontract the design, construction, and acceptance process to subcontractors. Typically, after finishing the rough part of construction, subcontractors begin designing and seeking approval for the firefighting system, which may lead to non-compliance with the standards. In addition, the firefighting standards applied to high-rise and super high-rise buildings in Viet Nam are mainly referenced and translated from foreign documents, which makes them unclear and less suitable for domestic projects. Many terms and expressions are difficult to understand, which poses challenges for personnel in the firefighting design appraisal process.

Repairs and replacements costs may arise

Pre-opening phase is an opportunity for developers to have the most comprehensive view of the projects’ infrastructure and physical facilities. Some common problems related to technical design may become apparent and generate costs, including:

• Ineffective fire alarm systems, and mechanical fire protection systems (fire tanks, fire hydrant boxes, fire hoses) are not properly arranged.
• Insufficient water pressure in the water supply system for pumping water to higher levels, with water pipes and drainage systems getting clogged or draining slowly, leading to flooding in parking lots or courtyards during heavy rainfall.
• The lighting system does not provide the same light level in all areas, with lighting equipment operating unstably.
• Elevator systems are not functioning optimally, frequently experiencing overloads or the risk of free fall.
• Electrical supply systems are encountering problems, with generators failing and affecting the daily life of residents and tenants.

These problems may necessitate repairs or replacements, incurring additional costs that need to be addressed during the pre-opening phase.

Problems during this phase mainly stem from the design and construction phase of the building. To effectively manage these risks, developers should opt for reputable companies and engineers with high expertise to oversee the initial phase. Additionally, developers can consider the consulting services offered by Savills for projects in the construction phase to find suitable solutions that enhance operational efficiency and optimise costs.

3. Operation phase

The level of deterioration for each building will vary depending on several factors such as construction quality, design, weather conditions, the surrounding environment, and the effectiveness of the management board. During this phase, developers need to develop a maintenance plan and allocate funds properly to ensure that the building remains in good operational condition.

The process of establishing a maintenance plan and allocating maintenance funds may have shortcomings

Buildings deteriorating rapidly due to ineffective maintenance by the management board can lead to financial burdens, affect the user experience, and generate legal issues. To establish a scientifically sound maintenance plan over the years, developers and management boards need to have a good understanding of legal regulations and projects’ specific characteristics. Additionally, the two key components of building maintenance costs, which are the building's condition and the technical systems that need maintenance, should be thoroughly assessed to create the most appropriate fund allocation plan.

Legal disputes related to the use of maintenance funds have become more prevalent in recent years

According to a report from the Ministry of Construction, these disputes come second only to disputes over the ownership area, including common and private ownership, parking spaces, communal living areas, and rental business spaces within the building. Several factors contribute to these disputes, with a common one being disagreements between the developers and management board, delays or failure in organising owners’ committee meetings. In some cases, developers hand over the maintenance fund to the management boards before finalising the original financial data and interest calculation, leading to legal complications.

A large operational budget due to inefficient technical systems and high energy consumption

The efficient use of energy and optimising energy consumption in a building is crucial for cost reduction. According to Pham Huy Tuan, Head of M&E, Property Management, Savills Ha Noi, energy costs account for 40-50% of a building's operating expenses. However, optimising energy costs is an aspect that often receives insufficient attention in building management. Many developers may not focus on optimising technical systems within their projects, resulting in inefficient energy usage and waste. This issue becomes more critical for buildings that have been in operation for 10-15 years, as their technical systems can quickly deteriorate, leading to higher energy consumption if not properly maintained and serviced.

Conclusion

Across project life, developers will face various problems related to technical systems. Developers should carefully consider and evaluate the design and technical systems of the building from the construction phase to minimise potential issues and costs while developing optimal and sustainable solutions. When entering the operational phase, it is essential to regularly assess the current condition and optimise the efficiency of technical systems monthly.

We not only provide property management but also consultancy services related to technical systems to support developers across project life. Learn more about Savills Management Consultancy services.

See more articles:

• The Importance of Property Management Services
• Create Long-Term Value with Design, Installation and Technical Consultancy
• The Vital Role of the Technical Team in Building Operations