Avoiding ESCO/GESA Contract Pitfalls

Posted by Bryan Haag on Monday, June 20, 2016

ESCO Contract Details

So, you’ve decided that a performance/energy service contract or Guaranteed Energy Savings Agreement (GESA) is the best way to fund your facility or utility project…great! They are a wonderful option and can have great results. Great outcomes are not guaranteed, however.

There needs to be clarity and understanding between the Energy Service Company (ESCO) and you, on a wide variety of topics, outlined in the contract - from M&V to savings calculations, equipment sizing, selecting, maintenance and training, and everything in-between. Factor in the usual clarity that contract “legalese” brings to the matter, and you may find yourself overwhelmed.

I recently found a good article in BUILDINGS by Eric Woodroof, “Beware the Fine Print in Performance Contracts,” that details a few potential performance contract pitfalls that I wanted to share to get you thinking on the topic.

The more you know before you sign on the dotted line, the more confident you can be in the success of the contract, projects, and outcomes. As Eric states in the article, “It makes sense to have someone with experience on your team or to hire an expert consultant. If you want to do it yourself, take a class on contracts.” We’ve helped many clients through this process and were recently selected by the Commonwealth of Pennsylvania as a consultant for their upcoming GESA projects.

If you have questions regarding energy service contracts, let us know - we’d be happy to help you sort through them.

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Categories: Buildings & Campus

Tagged: Energy Planning & Management  |  Budgeting & Funding  |  Facility Planning & Management  |  Engineering

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