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Eisenbach & Ruhnke Engineering, P.C. (E&R) has worked with and designed Energy Performance Contracts since 1995. We have been involved with every aspect of implementing Energy Performance Contracts; including preparing requests for proposals, evaluating energy service company responses, developing designs, selecting facility improvement measures, executing approved contracts and supervising construction.
E&R has worked on projects at various types of facilities including school districts, colleges, county office buildings, medical facilities and airport buildings. The primary focus of most of our work is public schools in New York State. We have worked with the NYS Education Department (NYSED) on many projects and are knowledgeable of all the laws, requirements and paperwork required to obtain project approvals. E&R has been chosen as the first independent reviewer of Energy Performance Contract submissions by the State Education Department. This was in recognition of E&R’s experience and knowledge of the process, and has allowed the education department to reduce review time and expedite projects through the state’s system.
E&R tries to incorporate clean alternative energy components in the performance contracts when conditions allow. We are committed to reducing energy use, providing cleaner renewable energy sources and reducing our nation’s dependence on foreign oil.
ENERGY PERFORMANCE CONTRACTING PROCESS OUTLINE
WHAT IS AN ENERGY PERFORMANCE CONTRACT?
- IT IS A LEASE PURCHASE, NOT A CAPITAL PROJECT.
- ALL WORK COMPONENTS CONTEMPLATED IN AN ENERGY PERFORMANCE.
CONTRACT MUST SAVE ENERGY. SOME ADDITIONAL SAVINGS, SUCH AS REDUCED MAINTENANCE COSTS, CAN BE CLAIMED AS WELL.
- ALL WORK COMBINED IN THE ENERGY PERFORMANCE CONTRACT MUST HAVE A FINANCIAL PAY-BACK OF WITHIN 18 YEARS, WITHOUT INCLUDING THE BUILDING AID COMPONENT IN THIS CALCULATION.
- BUILDING AID CAN BE USED TO COVER THE INTEREST COSTS FOR THE LEASE FINANCING.
GUARANTEES
THE ENERGY PERFORMANCE CONTRACTOR GUARANTEES THAT THE ENERGY SAVINGS PREDICTED WILL PAY FOR THE COST OF THE PROJECT. IF THE ENERGY SAVINGS DO NOT MATERIALIZE, THE ENERGY PERFORMANCE CONTRACTOR IS RESPONSIBLE FOR ANY SAVINGS’ SHORTFALL. THE DISTRICT BORROWS THE FUNDS TO PAY FOR THE PROJECT. THEY ARE THEN REPAID FROM THE ENERGY SAVINGS OVER A 15 YEAR TERM.
THE ENERGY PERFORMANCE CONTRACTOR PROVIDES A GUARANTEED FIXED PRICE TO COMPLETE ALL WORK. THERE ARE NO CHANGE ORDERS DURING CONSTRUCTION.
SELECTING AN ENERGY PERFORMANCE CONTRACTOR
- PREPARE A REQUEST FOR PROPOSAL ((RFP) TO SOLICIT COSTS FROM ENERGY PERFORMANCE CONTRACTORS.
- DEFINE AND PRIORITIZE WHAT CAPITAL WORK THE DISTRICT DESIRES TO BE INCLUDED IN THE ENERGY PERFORMANCE CONTRACT.
- DEFINE STATE THAT THE DISTRICT, TO PROTECT THEIR INTERESTS, REQUIRES EISENBACH AND RUHNKE, THEIR DISTRICT ENGINEERS, TO BE RETAINED BY THE ENERGY PERFORMANCE CONTRACTOR.
- PROVIDE FLOOR PLANS OF ALL BUILDINGS.
- PROVIDE OTHER DOCUMENTATION NEEDED BY CONTRACTORS TO PREPARE PROPOSALS (UTILITY BILLS, MAINTENENCE RECORDS, ETC.)
- DEFINE QUALITY AND STANDARDIZATION REQUIREMENTS OF THE CONTRACT.
- ESTABLISH PROJECT TEAM AND LINES OF COMMUNICATION.
- ADVERTISE FOR PROPOSALS AND CONTACT BIDDING ENERGY PERFORMANCE CONTRACTORS.
- RECEIVE PROPOSALS AND EVALUATE THEM ACCORDING TO ESTABLISHED CRITERIA.
- CHECK REFERENCES, PAST PERFORMANCE, BONDING AND INSURANCE REQUIREMENTS.
- DOES THE CONTRACTOR TRY TO DO THE RIGHT THING FOR THE OWNER, EVEN IF IT COSTS EXTRA FOR THE CONTRACTOR?
- PROPOSALS WILL INCLUDE BUDGET, SCHEDULE AND SCOPE OF PROPOSED PROJECT.
- ENGINEER WILL ASSIST IN REVIEW AND EVALUATION OF SUBMITTED PROPOSALS.
SUBMIT TO SED
SED
- WILL REVIEW TECHNICAL ASPECTS OF THE PROJECT.
- SED WILL ALSO REVIEW FINANCIAL AND ENERGY SAVINGS CALCULATIONS.
CONSTRUCTION PROCESS
- INDIVIDUAL CONSTRUCTION CONTRACTS ARE NOT BID.
- CONTRACTORS ARE SELECTED AHEAD OF TIME AND USUALLY HAVE A LONG-STANDING RELATIONSHIP WITH THE ENERGY PERFORMANCE CONTRACTOR.
- THE ENERGY PERFORMANCE CONTRACTOR IS SOLELY RESPONSIBLE FOR EVERY SUB-CONTRACTOR, THEIR COORDINATION, PERFORMANCE AND CLOSE-OUT OF THE PROJECTS.
- THE ENERGY PERFORMANCE CONTRACTOR IS REQUIRED TO PROVIDE ANNUAL INSPECTION AND MONITORING SERVICES TO ENSURE PREDICTED ENERGY SAVINGS ARE BEING REALIZED.
- THE PROJECT IS COMPLETED IN A SHORTER OVERALL DURATION.
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