It is at this point at a project level in the handback process i.e. at the initial condition survey stage or formal contractual handback survey milestone, that the opportunity to consider implementing a change in respect to how NZ ambitions will be achieved, or decisions made at this point about replacing carbon emitting assets other than on a 'like for like' basis as in the absence of any NZ interventions will mean that carbon emissions will be locked in for years to come.
Lifecycle planning and funds form part of the Project Agreement and are subject to regular reviews and drawdown by Project Co to meet the needs of the facilities and Project Agreement terms. Even if there might be no formal obligations on Project Co to share the detail contained within the lifecycle financial model, a joint review of lifecycle plans with a view to incorporating or optimising replacement activities that can benefit the energy and emissions performance of the facilities is highly recommended.
Project Cos are generally only obligated to replace plant, infrastructure or equipment on a 'like for like' basis, however, as noted above, the Authority may provide financial support with the 'uplift' in costs of procuring and installing more efficient systems on replacement, to benefit whole life costs and emissions but mindful, as noted above, to ensure that the Authority does not pay twice for elements and/or sub elements of the building.
This first step of assessing any NZ opportunities is around framing the discussion and identification of wider NZ benefits. First and foremost, it is critical to ensure that the facilities are maintained to the required standards in order to minimise breakdowns and extend asset life therefore reducing the risk of facilities being handed back to public bodies with large liabilities in terms of replacement works which should have been conducted during the contract term.