PC Max eNews: Three steps to Maximizing Your Return on Performance Contracting – Step 1 of 3

3 Steps to Maximizing Your Return on Performance Contracting

Maximum energy savings, utility incentives and quality; minimum, reasonable cost

Part 1 of 3-Part Series 

Energy savings performance contracting (PC) enables building owners to use future energy savings to pay for up-front costs of energy saving projects, eliminating the need to dip into capital budgets.

But too often, performance contracting falls short of meeting expectations. It doesn’t have to be that way. There is a proven approach that will maximize your return-on-investment, and includes three key steps:
  1. Creates a clear scope of work, and a fair and competitive procurement process,
  2. Uses a design and construction process that delivers the maximum in energy savings, utility incentives, and quality, at the lowest reasonable cost
  3. Performs independent measurement and verification

Step 1: Fair/Competitive Procurement


The best approach is to independently develop a clear scope of work and RFP that are based on the life-cost of your facilities, and will result in apples-to-apples proposals. If an ESCO develops the scope or RFP, it’s important to include a review by an independent energy consultant prior to issuance. Independent reviews of the proposals received should result in a ranking of best value, with negotiations beginning with the top ranked ESCO. Note: some state statutes require review by a licensed professional engineer or architect.

Step 2 in the series will arrive in a few weeks.

For Info on Maximizing your ROI with Performance Contracting
Sitton’s PCMaxTM Solution is a proven approach to performance contracting consulting that helps Owners maximize savings, utility incentives and quality, while reducing the total cost and shortening the payback period.