Project Implementation | Better Buildings Initiative

Step 1: Energy Conservation Measures (ECM) installation

Once the ESPC contract is signed, the ESCO will complete the design of the retrofit work and obtain your approval to move forward with installation.

Following installation, you will sign a notice of final project acceptance. At the same time, the ESCO will update the counts, runtime, and other assumptions to match installed conditions and issue a post-installation report. This report provides the final, as-built cost and savings figures.

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Step 2: Commissioning

Commissioning refers to a process that sets, verifies, and documents a building’s energy performance to ensure that it meets defined requirements. Buildings should be commissioned when they are first constructed and after substantial changes are made. Recommissioning involves commissioning a building that was previously commissioned to make sure that it is still operating optimally. Retro-commissioning refers to the process of commissioning a facility that may not have been previously commissioned.

Commissioning is an important process in any ESPC project. It ensures that the installation is complete and functioning as intended under various loads and conditions. While commissioning may be completed by the ESCO or an independent third party, it is important that you also be present for verification and testing. Commissioning should be a prerequisite for substantial completion of the project.

Effective commissioning requires that your organization and the ESCO identify your facilities’ specific requirements during project design and develop a clear plan to meet them. In order to achieve this goal, it is critical that you maintain close contact and clear communication with the ESCO throughout the design process to ensure that the commissioning requirements are effectively incorporated into the bid specifications. Following the design development process, those requirements can then be used to develop the commissioning plan. Any such plan should include a commissioning schedule, all documentation requirements, and specific team member responsibilities.

It should be noted that commissioning costs can vary significantly depending upon the complexity of a project. Many investments in commissioning will pay back in less than three years via savings from avoided future costs such as equipment repairs or wholesale replacements. The value of commissioning has only increased in recent years as a result of increasingly specialized building systems that must be effectively integrated along with increasingly strict building and safety codes. The cost of commissioning should be included in the overall project cost that is being financed.

Commissioning ensures that installation is complete and functioning as intended. Final acceptance and payment should not occur until after the commissioning report has been received and accepted.

You may want to request the your state ESPC program to review the project prior to accepting construction completion. You’ll likely sign a Certificate of Acceptance for the installed equipment.

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Step 4. Optional - Operations and maintenance (O&M) services

The cost of O&M provided by the ESCO is typically paid for much like the payroll for your facility staff – it’s a budgeted operating expense as opposed to a cost that is folded into the overall project cost.

Depending on the complexity of the equipment and other factors, the ESCO may offer (for a fee) to operate and maintain the equipment. You may or may not find this advantageous in terms of outsourcing the work to very specialized experts and maintaining the ESCO’s accountability. If there are problems with the equipment, there would be no questions about whether your facility staff might be held responsible for improperly operating or maintaining the equipment.

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Proceed to the next phase, Project Performance.