Authored by Taylor Oswald
Every day, facilities and operations staff around the world are tasked with taking on fighting the constant battle of failing infrastructure. Whether in a school, a public park, a hospital, or an industrial facility, every market is seeing the negative effects of its infrastructure falling apart, whether due to delayed maintenance or resiliency and power quality issues. Some examples* include:
- The prime cause of reported outage events from 2014 to 2018 was severe weather,
- The Department of Energy recently warned that two-thirds of the U.S. is at risk of losing power this summer alone.
- As of 2021, local municipal parks reported a $60 billion deferred maintenance backlog,
- and four out of ten public schools do not have long-term facility plans
But how can facility owners and municipalities get ahead of these issues with limited funding and support? They partner with a team who can provide an Infrastructure-as-a-Service (IaaS) agreement.
What does an IaaS Agreement Look Like?
Similar to a Public-Private Partnership (P3) agreement, the IaaS model allows clients to transfer their project risks to a third-party service provider but with the added benefit of being able to grow your project scope as needed for new technologies and changes. With the quick-paced nature we are seeing to subcontractors and building technology providers, clients can plan for top-tier systems as offerings evolve during the life of the project.
Financially, owners who enter into IaaS agreements don’t need to provide upfront capital for this project, instead, this requirement falls to the as-a-Service provider, like Viridis. Once this capital has been provided and the project is underway, owners are able to pay a contracted, fixed fee to their service provider built around the flexible term schedule. This allows for the positive flexibility that you might see in a more traditional P3 model, but with better deal terms that align with owner needs. Moreover, the IaaS model provides budget assurance for longer durations typically between 15 to 30 years.
Overall, the IaaS platform allows clients to have the most tailored approach to funding and ownership that they could ask for. By working with service providers like Viridis, this platform type creates a fully collaborative process with the ability to customize where needed to guarantee project and facility success.
When to Choose IaaS
We at Viridis encourage any owners interested in working with an IaaS provider to reach out to our team and see if it’s the best fit for them. When reviewing the best agreement type, we look at the following factors to identify projects best fit for IaaS:
- Timing – IaaS is ideal for projects that require a faster turnaround than those that may fall in the traditional P3 agreement.
- Funding – Certain projects require more flexibility on up-front funding which IaaS is designed for.
- Financial Flexibility – If a project requires flexibility, whether financially or scope-wise, IaaS agreements allow for customization to fit owner needs such as balance sheet impact.
No matter the type of project agreement that you’re looking for, Viridis Initiative and our team of experienced Principals encourage owners to reach out and discuss your options. At Viridis, we are dedicated to improving infrastructure and facilities by breaking through the traditional roadblocks that plague owners and help create a better built environment.
* Source: 2021 Report Card for America’s Infrastructure, ASCE
* Source: Fortune.com: Two-thirds of the U.S. is at risk of power outages this summer—but it’s not stopping Americans from electrifying everything in their homes