Perth’s Lake Joondalup Baptist College has contained a significant area of its costs thanks to a fixed-price program for the maintenance and repair of its HVAC systems.
Perth’s Lake Joondalup Baptist College has contained a significant area of its costs thanks to a fixed-price program for the maintenance and repair of its HVAC systems. This enables Stuart Holliday, Lake Joondalup’s chief financial officer, to know in advance what the costs will be for the year.
“Under our contract with AE Smith, they come in and service all units on a predetermined schedule. It is in their interests to do it properly because, if anything goes wrong, it’s basically at their cost. They are literally underwriting the risk,” Holliday states.
The strength of the school’s relationship with AE Smith saw a major $200,000, two-month retrofit of the HVAC in the school’s auditorium being awarded to AE Smith as the preferred supplier rather than going to tender. Another advantage of the contractual arrangement with AE Smith is that the company keeps the school up to date with any revisions to standards it needs to be aware of.
