Pre-emptive performance contracting for improved building energy efficiency

Typically the process of performance contracting starts with an analysis of the energy performance of an existing building. Next the energy efficiency improvements are proposed. The performance contract is then drawn mainly to recoup the cost of such improvements (plus any targeted profit) via the anticipated savings in the utility costs. A number of approaches are in practice to accomplish this task depending mainly on the size of the project, the financing options, and the building operation or control agreements. What is proposed in this paper is a concept of pre-emptive performance contracting for improved building energy efficiency. It is well known that when it comes to the building systems, to do it right the first time is far more cost effective than to improve or retrofit later on. However, due to budgetary and other considerations it may not be feasible to construct a most energy efficient building right in the beginning. But if a third party were to evaluate the approved and budgeted new construction, this party then may be able to propose improvements for higher energy efficiency through the conventional performance contracting but at the non-conventional time of pre-construction. Some aspects will be similar to those when qualifying for an energy efficient mortgage. In this paper, details of the traditional performance contracting are discussed and the concept of pre-emptive performance contracting along with some suggestions for implementing it.