Project ID: CCL 12
Cornick Pty Ltd
9 Hannabus Place
McGraths Hill NSW 2756
Proposal Date
18th June 2013
Prepared By
Mark Ferrara
Professional Officer
Bede Polding College
Rifle Range Road
South Windsor
NSW 2756
Proposal for Energy Efficient Lighting - Bede Polding College
Dear ,
Thank you for your interest in Cornick as a provider of high quality, energy efficient LED lighting products. Your choice to invest in LED lighting technology is the best way to reduce light related power consumption and maximise your lighting energy efficiency. This makes the upgrade a financially and environmentally intelligent move for your business that will help prepare you for an uncertain energy future.
We are pleased to present to you a quotation for the supply of our energy efficient LED lighting products to replace your current luminaires. Based on the information gathered in our site inspection (performed 7th June 2013) we have established the quantity and type of light fixtures that would best suit the lighting requirements of your premises while providing exceptional energy efficiency.
Cornick's LED lighting products offer more than energy savings; compared to conventional lighting solutions, our LED lights provide:
The NSW Government currently offers financial incentives for the completion of energy saving activities through the Energy Saving Scheme (ESS). The ESS is independently administered by the Independent Pricing and Regulatory Tribunal (IPART) and allows for the creation of energy saving certificates (ESCs) for any recognised energy saving activities (RESAs). Under the scheme, one ESC can be created for every one tonne of carbon dioxide equivalent not released due to the activity; this is calculated by multiplying the number of MWh saved by a conversion factor.
Number of ESCs created = Number Tonnes of CO2 (eq) saved = Conversion Factor x Megawatt hours saved.
i.e. 1 ESC = 1.06 MWh saved = 1 t CO2 (eq) saved
Under the scheme only Accredited Certificate Providers (ACPs) can create ESCs. These ESCs are created on the ESS Registry to be traded to Liable Entities, usually electricity providers, who are required by law to meet individual energy savings targets. There are significant audit and record keeping requirements that all ACPs must uphold in order to create ESCs for a particular energy saving activity. As an ACP, Cornick can work with you and IPART in order to produce and sell ESCs to subsidise your lighting upgrade.
Please see www.ess.nsw.gov.au for more information on the energy saving scheme.
Cornick is obliged to comply with IPART requirements to ensure an energy saving activity's longevity. Therefore, when conducting a lighting fixture upgrade, Cornick must ensure all removed fixtures are disposed of in an environmentally conscious manner. In addition, minimum light level requirements must be met when installing new lighting fixtures. This is achieved via pre- and post-upgrade illuminance testing and stringent product output/safety testing.
Maintenance cost reductions are also an integral part of the benefits generated by adopting LED lighting technology. The primary reason for this is that the lifespan of LED lamps is exceptionally greater than that of traditional incandescent, halogen and fluorescent lamps. This makes LED lights ideal for safety and security applications where the failure of a light can have unacceptable consequences. It also largely eliminates routine replacement costs associated with shorter lifespan lighting technologies - a benefit that can offset the initial cost of an LED lighting fixture. It is no surprise then that reduction of maintenance costs has a large impact on return on investment and payback period calculations.
Our proposal combines equipment supply costs with the results of energy and maintenance savings calculations. From this, a return on investment (payback period) summary is created which factors in the credit received from trading the project's created ESCs. The payback period for your project is approximately 0 months at your current electricity supply cost. With overall electricity prices predicted to rise by as much as 30% over the 2013-2016 period, your payback period will shorten and your return on investment will develop at an increased rate.
We look forward to your response to our proposal. If you require any additional information not contained in the proposal don't hesitate to contact us.
Yours Sincerely
Mark Ferrara
Capital Expenditure (excluding GST)
| LED Lighting Supply | $ 119,925.00 |
| Estimated Discount from ESC Trading | $ 22,427.25 |
| Net Cost of LED Supply | $ 97,497.75 |
Savings Summary
| Estimated Annual Energy Cost Savings | $ 0.00 |
| Estimated Annual Maintenance Savings | $ 0.00 |
| Total Estimated Annual Savings | $ 0.00 |
Return on investment
| Payback Period | 0 months |
We look forward to your response to our proposal.
Due to fluctuations in the Energy Saving Certificate price, the estimated discount from ESC trading quoted in this proposal is valid for 14 days from the proposal date. After this period, any future discounts must first be recalculated and a modified quote issued. This may affect the total discount afforded by ESC trading.
The above figures are based on information provided to Cornick including annual hours of lighting fixture operation and current energy supply costs. Any increase in supply cost will provide additional savings as with any reduced hours of light operation. The estimated return on investment (ROI) summary relies on information provided to Cornick and does not constitute or imply any guarantee of performance or outcome by Cornick.
| Area | Current Lighting Fixture | Power (W) | Qty | Replacement Lighting Fixture | Power (W) | Qty | Annual Usage (hrs) | Current Energy Use (kWh) | LED Energy Use (kWh) | Energy Saving (kWh) | CO2-e Saved (t) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total | 0 | 0 | 0 | 0.000 |
| Energy Cost ($/kWh) | $ 0.21 |
| Current Annual Energy Costs | $ 0.00 |
| Post-Upgrade Annual Energy Costs | $ 0.00 |
| Annual Energy Cost Saving | $ 0.00 |
Please note that while efforts have been made to ensure all calculations are representative of actual usage, those made above rely on information provided to and gathered by Cornick Pty Ltd representatives. Where applicable, ESS specified default power ratings for magnetic ballasts have been employed in the above calculations.
LED lamps do not require replacement as often as traditional lamps and substantial savings can be made as a result. The lifespan difference between incandescent, halogen or fluorescent lamps and LED lamps is substantial. The following table provides your estimated annual lamp replacement savings and assumes a replacement of current lamps at 80% of their lifespan. Based on your annual hours of operation all LED luminaires will last their design lifetime and not require replacement or repair. Lifespan estimates of current lamps are based on NSW Government values:
| Current Lamp | Lamp Purchase Cost | Lifespan (hrs) | Qty | Annual Usage (hrs) | Total Annual Saving |
|---|
Estimated Lamp Replacement Savings = $ 0.00 p.a
The cost to remove, replace and dispose of old equipment can be substantial when purchasing replacements. LED lighting fixtures minimise future removal and replacement costs as they do not have to be replaced and disposed of as often as traditional lighting fixtures. The following table provides your estimated annual lamp installation savings. As above, these estimates are based on NSW Government lifespans and costings:
| Current Lamp | Lifespan (hrs) | Qty | Lamp Install Cost | Annual Usage (hrs) | Total Annual Saving |
|---|
Estimated Lamp Installation Savings = $ 0.00 p.a
The total maintenance cost saving is equal to the sum of the equipment and installation cost savings. This is estimated to be approximately $ 0.00 per year.
Based on your current lighting's hours of operation, Cornick's LED lamps would last their design lifetime before needing to be replaced. This eliminates the need for any lamp replacement and results in significant cost savings over their lifetime. The annual savings above can be factored into the total savings to shorten the payback period.
The Energy Savings Scheme (ESS) began July 1st 2009 and aims to assist households and businesses to reduce electricity consumption and electricity costs. It is part of the NSW Government's plan to cut greenhouse gas emissions by 60% by 2050. The ESS is administered by the Independent Pricing and Regulatory Tribunal (IPART) and is legislated to continue until 2020 or until a national scheme is introduced.
The ESS creates a financial incentive to reduce electricity consumption by encouraging energy saving activities. Participants have benefited from lower electricity bills through implementing energy efficiency activities and have gained income from selling energy saving certificates (ESCs) through its market based mechanism. ESCs are created, registered and surrendered through an online registry known as the GGAS &ESS Registry.
The registry is a transparent web-based database which manages records of certificate providers and their certificates. All participants and members of the public may access the registry. Certificates are only available for transfer after paying a registration fee. Following registration, certificate holders are free to organise ESC trades outside of the registry at a negotiated price. After an agreement has been reached, the transfer of certificates is orchestrated via the registry. The registry is not a trading interface.
The number of ESCs created during a lighting upgrade may vary from site to site and much like any commodity, the trade value of ESCs fluctuates. It is generally accepted that the price of ESCs will not exceed the penalty rate for liable entities who are legally required to surrender a certain number of certificates each year. Recently, the ESC value has fluctuated at around $12-16 per certificate.
Utilising a value estimate of $ 15.00 per certificate, the net value of each ESC after application of our 15.00 % administration and selling fee is $ 12.75.
The following ESC Estimation was generated according to the information retrieved from Cornick's site inspection and the lighting hours of operation* you have provided.
1759 ESCs = $ 22,427.25 This value is deducted from your lighting supply costs to further reduce your payback period.
* ESC creation is subject to approval by IPART in projects where the annual hours of operation exceed the default IPART value (3000 hours per year). These projects hold additional responsibility for Cornick and require the customer to submit an Extended Operating Hours form and provide evidence in support of the operating hours stated.
1. DEFINITION
The expression "The Company", when referred to in these Terms and Conditions, refers to CORNICK
PTY LTD ABN 74 001 621 610.
2. GENERAL
These Terms and Conditions of Sales apply to the sales of goods and services manufactured or
supplied by The Company.
Any order received by The Company is deemed to be an order incorporating these Terms and
Conditions and no variation or cancellation of any of these Terms and Conditions shall be binding on
The Company unless assented to by The Company in writing.
Each order placed by the customer shall be &be deemed to be a representation by it, made at
the time that it is solvent &able to pay all of it's debts as &when they fall due. Failure to pay The
Company in accordance with these terms shall be &be deemed to be conclusive evidence that the
customer had no reasonable grounds for making the representation hereof &that the representations
were unconscionable, misleading and deceptive.
3. ACCEPTANCE
Any quotation by The Company is not to be construed as an offer or obligation to sell and The
Company reserves the right, at its option, to accept or reject any orders received.
4. PRICES
All prices charged/quoted shall be The Company's prices ruling at the date of despatch. Verbal
quotations are subject to written confirmation which will be given when requested. All goods are sold
and all prices are quoted FOB ex-works The Company unless otherwise specified. The Company
reserves the right at any time to make reasonable adjustments of prices in relation to fluctuations in
The Company's cost of labour, material, goods or transport and also in relation to any changes in
currency exchange rates or duty which affect The Company's costs for imported goods.
Unless expressly noted all prices charged/quoted are exclusive of GST. All government imposts of
GST or any equivalent as separately itemised on The Company's invoices are to the customer's
account.
5. CANCELLATION OR VARIATION
A contract may, at The Company's option, be terminated in the event of insolvency of the purchaser
or the purchaser being placed in liquidation, whether voluntarily or otherwise. A purchaser may
only vary an order if such variation is accepted by The Company in writing and any variation or
cancellation may only occur on terms which will provide for The Company to be indemnified by the
purchaser against any loss or damages. Cancellations will attract a cancellation fee and must be
at least 90 days prior to current due delivery date. No cancellation will be accepted on indented
products. Re-schedules must be at least 45 days prior to the current due delivery date and any item
may be deferred only once, up to a maximum of 90 days from the original requested date.
6. PACKING
Unless otherwise indicated prices include standard cases or packing.
7. DELIVERY
Unless otherwise stated in writing the price quoted is ex The Company's store where stocked. Where
delivery is requested beyond this point The Company may, at its discretion, agree to act as agent
for the purchaser in this matter and all costs for cartage and insurance will be for the purchaser's
account.
8. TERMS OF PAYMENT
Cash on Delivery otherwise expressly agreed to in writing. The Company reserves the right to deliver
and invoice any item or items comprising the whole or part of any order. Failure of The Company to
deliver any part of an order shall not entitle the purchaser to repudiate the contract.
9. CLAIMS
The following conditions relating to the return of goods for credit apply to all goods returned for this
purpose.
9.1 Goods returned must be accompanied by a Delivery Docket stating original invoice number, date
of purchase and reason for return.
9.2 Non-standard equipment made to special order cannot be credited under any circumstances.
9.3 Inward freight packing and delivery charges are the responsibility of the purchaser.
9.4 Goods will only be accepted for credit to the extent of that wrongly or over-supplied.
9.5 All returns must be in good order and condition, unused and in original packaging. No claims by
the purchaser need be recognised unless made in writing within fourteen days after delivery of the
goods to the purchaser.
No claim for damage or resultant expense direct or indirect in respect of any goods shall in any case
exceed the invoice price of the goods in respect of any damages or expense shall arise. All damage
or expense over and above such invoice shall be the responsibility of the purchaser.
10. CONDITIONS AND WARRANTIES
All conditions and warranties expressed or implied by statute, the common law equity trade custom or
usage or otherwise howsoever are hereby expressly excluded to the maximum extent permitted by
law. Where so permitted the liability of The Company for a breach of a condition or warranty that
cannot be excluded is limited (at The Company's option) to the replacement or repair of the goods or
the supply of equivalent goods or the cost of replacing or repairing the goods or of acquiring
equivalent goods. The Company shall not be liable in any way whatsoever for indirect or
consequential loss or damage whatsoever (whether based on tort or contract or otherwise). It is a
condition of this contract that the purchaser shall not use the goods for the installation in or in
association with aircraft. Goods are not authorised for use in life support devices, systems intended
for surgical implant into the body or for applications intended to support or sustain life or where the
failure of the product would ordinarily create a situation where personal injury or death is likely to
occur. In the event the goods are so incorrectly used, The Company shall be exempt from all liability
whatsoever and the purchaser hereby indemnifies The Company in respect of any claims, demands,
suits or proceedings whatsoever resulting from such misuse of the goods. The Company warrants its
products to be in conformance with its own plans and specifications and to be free from defects in
materials and workmanship under normal use and service for 12 months from the date stamp control
on the product, or for products not having a date stamp, for twelve months from the date of original
purchase unless the installation instructions or catalogue sets forth a shorter period, in which case the
shorter period shall apply. The Company's obligation shall be limited to repairing or replacing, at its
option, free of charge for materials or labour, any part which is proved not in compliance with The
Company's specifications or proves defective in materials or workmanship under normal use and
service. The Company shall have no obligation under this Limited Warranty or otherwise if the product
is altered or improperly repaired or serviced by anyone other than The Company. For warranty
service, return transportation prepaid, to 9 Hannabus Place McGraths Hill NSW 2756 Australia.
There are no warranties, expressed or implied, of merchant ability, or fitness for a particular purpose
or otherwise, which extend beyond the description on the face hereof. In no case shall The Company
be liable to anyone for any consequential or incidental damages for breach of this or any other
warranty, express or implied, or upon any other basis of liability whatsoever, even the loss or damage
is caused by its own negligence or fault. The Company does not represent that the products it sells
may not be compromised or circumvented; that the products will prevent any personal injury or
property loss by burglary, robbery, fire or otherwise; or that the products will in all cases provide
adequate warning or protection. Customer understands that a properly installed and maintained alarm
system may only reduce the risk of a burglary, robbery, or fire without warning, but it is not insurance
or a guarantee that such will not occur or that there will be no personal injury or property loss as a
result.
Consequently, The Company shall have no liability for any personal injury; property damage or
other loss based on a claim the product failed to give any warning. However, if The Company is
held liable, whether directly or indirectly, for any loss or damage arising under this limited warranty
or otherwise, regardless of cause or origin, The Company's maximum liability shall not in any case
exceed the purchase price of the product, which shall be the complete and exclusive remedy against
The Company. This warranty replaces any previous warranties and is the only warranty made by The
Company on this product. No increase or alteration, written or verbal, of the obligations of this Limited
Warranty is authorised.
11. TITLE TO GOODS
11.1 Notwithstanding delivery of the goods to the purchaser, until the purchaser has effected full
payment for the Goods and any other goods previously supplied by The Company:
a) legal title to the Goods will remain with The Company;
b) the risk in the Goods will pass to the purchaser on delivery to the purchaser or its agent;
c) the relationship between The Company and the purchaser will be fiduciary;
11.2 The Purchaser will:
a) hold the Goods as bailee for The Company;
b) keep the goods separate from other goods; and
c) label the goods so that they are identifiable as the goods of The Company;
11.3 With The Company's consent (which is given) the purchaser is at liberty to sell the Goods, in the
ordinary course of the purchaser's business, provided that the money from the sale will:
a) be held in a separate account in trust for the vendor;
b) not be mingled with other money; and
c) not be placed into an overdrawn account
11.4 The purchaser is not an agent of The Company in any sale of the Goods by the purchaser.
11.5 After the happening of an Event of Default, the vendor may without demand retake possession
of the Goods and may without notice sell the Goods on such terms and in such a manner as it
determines and will be entitled to deduct all expenses incurred. For the purposes of recovering
possession and without limiting the generality of the foregoing, the purchaser irrevocably authorises
and licenses The Company and its servants and agents to enter any premises where any Goods may
be stored and to take possession of the Goods.
12. RISKS
Risk in the goods purchased shall, unless otherwise agreed in writing, pass to the purchaser upon
delivery of the goods to the purchaser or his agent or to a carrier commissioned by the purchaser.
13. PATENTS
To the best of The Company's knowledge goods sold to the purchaser will not infringe any
patent, trade mark, registered design or copyright of any third party but The Company shall in no
circumstances be liable to the purchaser in respect of any such infringement constituted by the sale or
use of the goods.
14. PERFORMANCE AND REPRESENTATION
Any figures or estimates given for performance of goods are based upon The Company's experience
and are such as The Company would expect to obtain on test. But The Company will only accept
liability for failure to obtain the figures or estimates given when such figures or estimates are
guaranteed in writing within specified margins. The purchaser acknowledges that neither The
Company nor any person purporting to act on its behalf has made any representation or given any
promise or undertaking which is not expressly set out in the contract whether as to the fitness of the
goods for any particular purpose or any other matter.
15. RECOVERY OF COSTS
The customer will pay to The Company any costs and expenses incurred by it or it's solicitors, legal
advisers, mercantile agents and other parties acting on The Comapny's behalf in respect of anything
instituted or being considered against the customer whether for debt, possession of any goods or
otherwise.
16. FORCE MAJEURE
The Company will not be in default or in breach of any contract with the customer by as a result of
Force Majeure. Force Majeure means beyond the reasonable control of The Company and includes
any strike or lockout either directly or indirectly by any supplier of goods or services.
17. LEGAL CONSTRUCTION
Except as may be otherwise agreed by The Company, the contract shall be governed by the laws of
the State of NSW.