What End Users Should Know About Energy Performance Contracts And How to Minimize Their Risks
Abstract
There have been many books written and papers presented re-
garding risks in performance contracts, especially for Energy Perfor-
mance Contracts. This article will present some of the experiences and
thoughts that this author has had in minimizing risks in Energy Per-
formance Contracts. The slant of the article will be on how the End
User can minimize his risks, and will be presented from experiences as
an End User and as an ESCO. Risks discussed fall into the following
categories: (1) engineering, (2) implementation, (3) financial, (4) verifi-
cation, and (5) selection of an ESCO
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References
Hansen, Shirley J., Ph.D., and Weisman, Jeannie C., Performance
Contracting; Expanding Horizons; The Fairmont Press. 1998.
Hansen, Shirley J., Ph.D., Performance Contracting for Energy and
Environmental Systems. The Fairmont Press. 1992.
Thumann, Albert, PE, CEM and Wainwright, Fred, Financing En-
ergy Projects Deskbook. The Fairmont Press. 1997.
Tharoor, Mahesh, CEM, CDSM, CLEP. “Minimizing Risks With
Performance Contracting Projects—A Customer Checklist.” A pa-
per presented at the Business Energy Solutions Expo ’99, December
, Orlando, FL.