Common Sense Approaches to M&V in Performance Contracting

Abstract

Performance Contracting requires that some measurement & veri-
fication (M&V) occur to verify that energy savings are achieved and
payments are justified. It has been this author’s experience, however,
that too often M&V occurs after the fact. Cost to install and maintain the
M&V system becomes a significant factor, and typically projects end up
stipulated. While stipulation reduces risk to all parties, the “Perfor-
mance Contract” ends up not really being a true “Performance Con-
tract.” This article will discuss some common sense approaches that
have been used, and proved, for M&V in performance contracting. The
article has true examples that have occurred during his 10+ years of
experience in performance contracting.