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Energy Performance Contracting

Owner's Rep Consulting

Are you Sure the EPC is Tailored to your Business?
Energy Performance Contracts (EPCs) are a great alternative to self-funding your energy conservation measures. The EPC provides “One Throat to Choke” – a complete turnkey solution from the energy audit to the complete installation of all energy conservation measures. ESCOs have the ability to bring in teams of seasoned engineers that have a wealth of knowledge of solutions and associated risks. However, EPCs Agreements between your business and an ESCO can often be complex and confusing. How do you know the contract is tailored in your favor? Are you benefiting from the potential upsides of an EPC?

The 2KB Approach

​The EPC process can be complex and often involves several phases. The 2KB Services team has several tenured employees that have several years with the top ESCOs in the industry. As an Owner's Rep, we will be with you every step of the way to ensure all your questions are answered and that your achieving the maximum benefits from an EPC. The EPC process will generally follow the steps below:

  1. RFQ Release – Once a client determines that an EPC is the best approach for an energy process, an RFQ is released to inform ESCOs of the potential project. Due to the complexity of EPC projects, ESCO selection will typically be based on qualifications, case studies, and general confidence in the team.
  2. Preliminary site visit – A preliminary site visit is an optional step to allow ESCOs to get a first-hand look at the facilities and determine whether a viable project exists.
  3. Letter of Intent – After the walkthrough, the ESCO will decide whether they can meet the expectations set by the customer. Working together with the client, a letter of intent is drafted which states that the ESCO agrees to perform an in-depth audit of all facilities in scope and will come up with a turnkey project that meets the requirements including ALL related fees. This is the gamble the ESCOs make – if after the LOI is signed, detailed audits are performed, and they find they CAN’T meet the requirements, they walk away at no cost. If, however, they do develop a turnkey project that meets the requirements, the client has to decide whether to have them implement the project or pay the breakaway fee as stipulated in the LOI.
  4. Detailed energy audit – After the LOI is signed, the ESCO performs detailed energy audits at all facilities to get within 85%-90% of final cost and savings. At this point the client and ESCO meets to choose which measures to include in the EPC, as well as verify that the project is still on track and still able to meet the requirements. For the selected ECMs, they may follow up with an investment grade energy study to get to 100% of final cost and savings.
  5. Energy Performance Contract (EPC) – Should the client decide to move forward with the turnkey approach, an EPC is signed based on what was agreed upon in the LOI as well as the detailed energy study. This will include the total cost and total guaranteed savings.
  6. Project Implementation – Implementation of the selected ECMs begin; this period typically lasts 6-12 months depending on the complexity of the ECMs. 

|   7778 McGinnis Ferry Rd, #302    |    Suwanee    |    Georgia    |    30024    |    770.927.8357   |    info@2kbenergyservices.com    |

7778 McGinnis Ferry Rd 


Suwanee, GA, 30024  

770.927.8357     info@2kbenergyservices.com