Business model and service areas in service business
Caverion provides a wide range of service and maintenance, from single service measures to comprehensive maintenance of properties and life cycle services.
Up in the value chain in the service business
Technical Maintenance: A stepping stone to more comprehensive services
The technical maintenance of properties and industrial processes is our core competence, one that we have provided to our clients for several decades now. It also forms a basis for our more comprehensive maintenance services: managed operations and managed life cycle.
Preventive, planned maintenance is of primary choice in terms of maintaining the value and the long-term cost effectiveness of a property or industrial plant, but we also provide our clients with repairs with fast response times.
ServiFlex is our concept for preventive maintenance, which allows our clients, under one single agreement, to flexibly combine an individual package from range of more than 100 different services. The agreement can cover the maintenance of a single technical system or all of the property’s technical systems.
In the ServiFlex concept, the maintenance processes are standardised and quality-assured, allowing us to guarantee uniform service quality regardless of the property. The client defines the maintenance targets, and a single contact person from Caverion takes care of the rest: services in all of the technical disciplines included in the agreement, the planning, scheduling and monitoring of maintenance, as well as statutory reporting.
Preventive service reduces the number of acute incidents, extends the service life of technical systems and maintains optimal conditions in the property. It facilitates the anticipation of operating costs, reduces the client’s administrative costs and helps preserve the property’s value. The content of each service is described in detail. And when needed, the client can easily add new services based on a fixed price list.
Managed Operations means comprehensive partnership
Our aim is to include managed operations in our service agreements in an increasing degree. Currently, Caverion has a total of approximately 100 service agreements that include managed operations.These clients operate in both the public and private sectors.
We look after the property’s value in a comprehensive way, by offering a wide range of technical and soft services. By managing these services efficiently, we ensure the quality of the service and keep operating costs under control.
In Managed Operations contracts, we assume responsibility for the agreed conditions, security and energy use in the property. We are also responsible for meeting the financial targets related to the property.
Technical services are our core competence, which we produce ourselves. In addition, we can offer other services related to the property, such as security, reception and cleaning services, through subcontracting. In fact, if needed, our clients can outsource all maintenance operations to Caverion. In 2014, for instance, Kemijoki Oy, the most significant generator of hydropower in Finland, outsourced the entire operation and maintenance services of its 16 hydropower plants to Caverion.
With proper maintenance, the rental and resale value of a properly can be preserved or it can even grow. Energy costs can be reduced by as much as 30%. Further cost savings also be achieved through lower administrative costs and benefiting from Caverion’s procurement and subcontracting networks.
Building automation is often an integral part of the property. When clients’ properties are connected to Caverion’s remote management services, the operation of technical systems can be further enhanced and the energy efficiency in the property increased.
Example of Managed Operations agreement
Managed Life Cycle: All service areas in one contract
Ultimately, Caverion can take full responsibility for the life cycle of its client’s property or industrial plant, including the responsibility for designing, building, operating and maintaining the technical solutions throughout decades. A life cycle agreement includes services from all of our seven service areas in the project as well as the service and maintenance business.
We offer life cycle projects to our clients both in the public and private sectors and implement them with various agreement and financing models, such as the Public Private Partnership (PPP).
The ESCO (Energy Service Company) and EPC (Energy Performance Contracting) energy-saving contracts are examples of our life cycle projects where we guarantee our client the energy savings specified in the contract as well as the efficiency, functionality, security and the agreed conditions over a contact period of 20 years or more.
The project usually begins with an analysis of the property’s energy consumption. Based on this analysis, we will design a detailed plan for increasing the efficiency of systems through, for example, modernisation. After the project delivery, Caverion is responsible for the property’s maintenance throughout the operational phase.
No initial investments are needed from the client, such as a municipality or other public sector client, since the investment is financed with the realised savings. The savings are typically split between the client and Caverion. If the guaranteed savings are not achieved, Caverion is responsible for the difference. The energy-savings guarantee is one of our competitive advantages, as few service providers can offer such a service.
Our oldest ongoing life cycle project began in 2000, and the number of life cycle projects has increased over the years in Finland, Sweden and Denmark, in particular. In 2014, we had a total of approximately fifty ongoing life cycle projects.
In Sweden, there were projects ongoing in the municipalities of Söderhamn, Mora and Kalmar, among others. In Denmark, we are in charge of the managed operations and comprehensive energy efficiency of the courthouse of Western Jutland and the Holstebro police station for the next 25 years, as part of a PPP projects. In Finland, PPP projects are underway in, for instance, the Huhtasuo school and daycare centre in Jyväskylä, the Kaivomestari property in Espoo and in three life cycle daycare centres in the City of Porvoo.
The life cycle model reduces costs related to propertis and their processes
For clients, the life cycle approach means that their buildings or industrial facilities and processes are functional, safe, sustainable and energy- and cost-efficient.
service requests a year