Construction Today - March 2012 - (Page 104)

Industrial By Gina M. Vitiello However, ESPCs have played a key role in the ability of federal and state agencies to complete vital renovations and upgrades to aging building systems – reducing energy and operating costs in the process. The ESPC Model Simply put, an ESPC is an agreement to provide energy retrofits to a building or facility owner with the costs repaid from the savings incurred by the project. ESPCs involve a wide range of technical, financial, legal and energy-related issues, combining several different types of projects into one long-term contract. ESPCs have historically been used in the public sector where capital budgets are stretched thin and are particularly suited for projects involving universities, hospitals, military bases, K-12 schools, municipal water plants and campuses and metering upgrades. Under an ESPC, a federal or state agency enters into a contract with an energy services company (commonly referred to as “ESCO”) to perform an in-depth energy and water use audit of a particular facility or campus to identify energy- and/or water-saving improvements that can be made to reduce the agency’s operation costs. The ESCO then designs a project and builds or installs the energy/water saving measures identified in its audit and arranges financing for the project, as well as provides operations and maintenance training or services for the newly installed systems. ESPCs differ from more traditional contracts in several ways. • Project Costs Payment: Unlike a traditional retrofit project that is paid for from capital improvement budget dollars, with ESPCs the ESCO pays for or arranges financing for the project upfront so the agency does not have to come up with a lump-sum payment at the time of the project. Instead, the project is paid for over the “guarantee period” from the savings that are generated by the improvements. During that period, the ESCO is usually under contract with the state agency to operate and maintain the equipment and improvements for a separate fee. • The Performance “Guarantee”: The ESCO “guarantees” that the Making the Old Efficient Again any people are unfamiliar with the concept of energy savings performance contracts (ESPCs) or do not understand how these contracts differ from more traditional methods of delivery for construction and renovation contracts. M 104 CONSTRUCTION-TODAY.COM MARCH 2012 http://www.CONSTRUCTION-TODAY.COM

Table of Contents for the Digital Edition of Construction Today - March 2012

Construction Today - March 2012
Best Practices
Construction Insurance
JC Beal Construction – Brod - erick Tower redevelopment
Harden Group
Pyramid Companies – Destiny USA
EllisDon – Yorkdale Shopping Center
HBD – Dierbags
Marous Brothers Construction
Roy Anderson Corp. – Margaritaville Casino and Restaurant
Foulger-Pratt Contracting LLC – Lorton Workhouse Arts Center
Penn Builders Inc.
Turner Finch Construction – University of Kentucky Center for Applied Energy Research
Bouygues-Bird Joint Venture – Royal Canadian Mounted Police E Division Headquarters
Camden County Improvement Authority: Cooper Medical School of Rowan University
Coreslab Structures (OKLA) Inc.
Hensel Phelps Construction Co. – City of San Antonio Public Safety Headquarters
Kjellstrom + Lee Inc. – UVA Barry & Bill Battle Building
Hensel Phelps – High-altitude Army Aviation Training Site
Texas A&M University – Northside Residence Hall
Milton J. Womack Inc./JE Dunn JV – Our Lady of the Lake Heart and Vascular Tower and Trauma Center Expansion
AvalonBay Communities Inc. – Avalon Park Crest
Powell Construction Services LLC
AvalonBay Communities Inc. – AVA H Street
Buckingham Companies
Fortune-Johnson General Contractors
Current Builders – The Residences at Lakehouse
Forino Co.
Mill Creek Residential Trust LLC
Black Hills Corp. – Pueblo Airport Generation Station
URS Corp./Alberici Constructors Inc. – Olmsted Dam Project
APEX Block Corp.
BMW Constructors Inc.
Last Look

Construction Today - March 2012