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Performance Contracting Model Expedites Energy Projects
If you have wanted to imple-
ment an energy retrofit for
your commercial facility but
have been stymied by complexities and
funding, your solution may be BOMA’s
updated performance contracting model.
The BOMA Energy Performance Contracting Model (BEPC) has been streamlined to help private building owners
implement energy efficiency projects.
Although performance contracting has
been used largely in the public sector
for decades, BEPC facilitates its use in
the private sector, where it retains the
key benefit of using future energy and
operations savings to finance retrofits.
The updated model also provides more
flexibility for building owners, who can
mold their desired scope and priorities
around the contract documents.
In a departure from the more tradi-
tional performance contacting practices
provided by Energy Service Compa-
nies (ESCOs), the BEPC model does
not necessarily require contractors to
provide performance guarantees, an approach that offers flexibility to owners of
investment-grade office buildings. Owners who prefer to use their own standard
contracts can do so yet still incorporate
BEPC language as exhibits to an agreement. Qualified contractors – in addition
to ESCOs – can also use BEPC. These
contractors can carry an insurance policy
to compensate owners for any deficit or
provide a guarantee of energy savings.
The BEPC model also takes a more
flexible approach to M&V (measurement
and verification) through the option of
separate, standalone M&V agreements.
Owners can cancel such agreements at
one year or later, a choice that reduces
their M&V costs.
“Owners who know that their retrofit
is performing may not need a 10-year
guarantee, which often has a lot of M&V
costs,” says BOMA Fellow Brenna Wal-raven, President and CEO of Corporate
Sustainability Strategies, Inc.
BEPC also facilitates financing by integrating the Investor Confidence Project
(ICP), whose best practices help ensure
that energy retrofits perform as expected
and thus are attractive to lenders. BEPC
accommodates the latest financing options, including PACE (Property Assessed
Clean Energy), on-bill, and other third-party and self-financing options.
The free BEPC toolkit with editable
template documents, including energy
performance contracts, RFQs and RFPs,
and investment-grade audits, can be
downloaded at www.boma.org/BEPC.