Engineered savings programs [ESP] - An alternative to performance contracting

Performance contracting (PC) programs are aimed at funding infrastructure improvements, such as lighting and HVAC upgrades, from energy savings. These programs are typically provided by original equipment manufacturers (OEM) and unregulated utility-based energy services companies (ESCOs). Unfortunately, they have not been accepted widely in the private sector. Consulting engineers often believe that PC programs fail to represent the best interests of the customer. This is because PC programs cost substantially more than traditional energy projects designed by professional consulting engineering firms and installed by construction management companies.