In new buildings, performance contracting bridges the gap between the first-cost and life-cycle-cost perspectives by using long-term energy savings to pay for the incremental first-cost of high-efficiency measures.
Several issues it addresses include: metering and reporting, energy-efficient product procurement, energy savings performance contracts, building performance standards, renewable energy requirements, and alternative fuel use.
Under a performance contract prior to privatisation the management of the company reduced system losses from approximately 19 per cent to 16.8 per cent.
Applying performance contracting to buildings being designed and built is the perfect cure for pressure to value engineer the efficiency and sustainability out of new buildings as they are designed.
