Reynolds’ energy savings performance contract is a turn-key service that provides customers with a set of energy-efficient technologies and upgrades that are implemented and paid for in full, or partially, using the utility savings generated by these measures.
Let Reynolds be your source of experience, knowledge and outstanding services when it comes to performance contracting and energy-efficient design.
What Is Performance Contracting?
Performance contracting is an approach to energy and environment construction that minimizes the need for upfront capital expenditure. Instead, businesses work with an energy services company (ESCo) that arranges financing based on the assumption that, over time, the cumulative energy savings generated by the project will recoup the upfront costs. In performance contracting, the ESCo is required to guarantee that a project’s upgrades and retrofits will generate enough savings over time — or pay the difference if those savings don’t materialize. With performance contracting, the ESCo is equally vested in the successful outcome of the project as the Owner.
What Are the Benefits of Performance Contracting?
Performance contracting is an alternative project delivery model that offers several benefits. Instead of sinking money into upgrades that may or may not deliver results, businesses form a mutually beneficial partnership with an ESCo that has an equal stake in the success of the project.
For businesses, this model helps avoid upfront costs that can tie up their available cash flow during a critical period of growth. It reduces risk and often leads to faster project turnaround times, while giving the business a single point of contact they can communicate with while the work is in progress.
Performance contracting is a long-term relationship — both parties are invested in the job and focused on seeing the best results possible.