Oversizing..AHU or Plant?

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Howdy!

So, I just saw a project which has applied its oversizing factors (1.15 for
cooling and 1.25 for heating) to the plant rather than the air handlers.
ASHRAE 90.1 Appendix G page 180, G3.1.2.2 Equipment capacities does not
specify where the oversizing should occur. Have you seen this method used
before? Is it an acceptable and accurate way of meeting the baseline
modeling requirements?

I appreciate your help.

Much thanks,
Aru

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