Your project is designed and out for bids. Pricing comes back and you discover that the lighting package is considerably more expensive than you had anticipated. You’re left contemplating, “how did this happen? Where did this pricing come from?”
Here are several possible culprits for the unexpected spike in lighting costs for your project, along with some suggestions for how to avoid, when possible, paying for more than you’re getting.
High quality function and aesthetics will cost more
LED technology is more complex than traditional sources
LED technology has resulted in complicated testing requirements becoming the standard for manufacturers of reputable lighting products. For most specifiers, there is an expectation that ANSI/IES standards such as LM-79 are carried out for every iteration of a lighting product offered by a manufacturer. For example, if you manufacture a recessed downlight and want to offer three distributions with four lumen outputs to choose from, you’re looking at a minimum of twelve iterations of testing and reporting. If you update your product with more efficient LEDs, better color rendition, etc., all those tests must be repeated.
LED lighting contains multiple components which have advanced technologically compared to legacy sources. Drivers, compared to legacy transformers, can be compatible with multiple lighting control and dimming protocols. LED luminaire housing must be designed to facilitate heat sinking, which is essentially a new issue for some applications as many legacy sources are not negatively affected by heat. And since LEDs are directional (not omnidirectional like many legacy sources) and are ‘ugly’ when exposed, some type of concealment: lensing or engineered optics are essentially mandatory. All of these components add cost to a well-designed LED light fixture.
Lighting controls are a major component of cost
In Michigan, specification of lighting control devices and systems must now adhere to the very strict Energy Code ASHRAE 90.1 2013. Most spaces can no longer have just a toggle switch on the wall. Occupancy/vacancy sensors and daylight harvesting sensors are needed almost everywhere. Networked lighting control systems, which allow the owner to have complete observation and control over all the lighting on their property with a touch screen interface, are becoming increasingly more utilized over standalone switches.
LED technology has opened an entire world of possibilities in terms of how we can control and interact with lighting. LED fixtures can produce color changing or tunable white light, which involves more complicated programming and scene setting. IOT (Internet of Things) connected lighting allows for a system of LED fixtures to “talk” to each other and share data on everything from foot traffic to end of life sensing. These tools are attractive and valuable, but not surprisingly come with a hefty price tag.
Owners for most commercial projects do not buy their lighting directly from the manufacturer
The bid process allows for lighting agents and representatives for various manufacturers to review the design documents and submit competitive alternates. The actual ordering of the light fixtures is typically done by a contractor, who will purchase the lighting through a distributor. The bidding and purchasing process involves multiple parties, and each party is paid for their services. The manufactured cost of a light fixture, called “distributor net” cost, can be marked up multiple times before it reaches the owner at “retail cost”.
These and other factors can affect the price of lighting on a project
Understanding the items above can help you estimate the cost of your lighting package and know what questions to ask in order to get more accurate estimates up front. This will help you budget and avoid sticker shock.
It is possible to save money without sacrificing function. The electrical engineers at Peter Basso Associates and lighting designers at Illuminart can assist owners or clients early in the design process in order to avoid unexpected costs. PBA and Illuminart can also help in providing the best lighting design solutions based on your specific needs.
To learn more about PBA’s electrical engineering design services, go to: https://www.peterbassoassociates.com/services/electrical-engineering
For information on Illuminart, an award-winning lighting design division of PBA, go to: https://www.peterbassoassociates.com/illuminart
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