You may know that you can use Performance Contract legislation as a budget-neutral approach to energy-efficiency projects at your facility. But, did you know that same legislation is available to fund necessary capital projects?
Established in Pennsylvania in 1998 under the Guaranteed Energy Savings Act (GESA), the law permits public / governmental entities to use Energy Performance Contracting to pursue necessary capital improvements that save energy and money without any upfront cost. Through the Performance Contract Legislation, traditional energy savings measures are combined with necessary facility capital / infrastructure projects to provide a larger scale facility improvement solution.
By using this method of procurement, Public / Governmental entities can accomplish and address more of their needs under one umbrella project with a single source of execution responsibility, as an alternative to the traditional bid and spec method with multiple low-bid prime contractors. This saves time and manpower during the installation and minimizes disruption to building occupants, activities, and schedules.
One of the most valuable aspects of Performance Contracts over traditional bid/spec projects is the project guarantee. The guarantee provides for a defined energy / operational savings to the customer while maintaining or improving comfort. This minimizes the entity’s financial risk associated with the installation by guaranteeing a ROI. Providing a turnkey solution guarantees that the finished project will meet the customer’s agreed upon expectations.
Performance Contracting allows for greater leverage in maximizing potential utility rebate programs to help fund these projects. The performance contracting company will also look to include any and all available grants associated with specific scope measures further offsetting cost to the customer.
Performance Contracting provides Public / Governmental entities the freedom to dictate which equipment manufacturers and contractors are used to upgrade / modernize their facilities. This eliminates the low bid “…and or equal” aspects of the bid and spec procurement method, resulting in customers having to settle for substandard work.
Owner’s Reps and engineering firms have also found this approach beneficial in serving the Owner for the speed, flexibility, and end results this provides following identification of necessary facility improvements.
Both traditional energy savings measures and non-traditional, large scale facility improvements can be included in the Performance Contract project.
As Performance Contract project scopes expand beyond traditional pay-from-savings measures, CM3 has become one of the leading ESCO-based, construction management firms in the state, successfully completing performance contract projects for nearly 20 years. Our service provides our customers with better accountability, easier access, and enhanced control over every aspect of their project.
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