Shirley J. Hansen - Performance contracting: expanding horizons

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title	:	Performance Contracting : Expanding Horizons
author	:	Hansen, Shirley J.; Weisman, Jeannie C.
publisher	:	The Fairmont Press
isbn10 | asin	:	0881732761
print isbn13	:	9780881732764
ebook isbn13	:	9780585116112
language	:	English
subject	Energy industries, Contracting out.
publication date	:	1998
lcc	:	HD9502.U52H365 1998eb
ddc	:	658.2
subject	:	Energy industries, Contracting out.

Page iii Performance Contracting: Expanding Horizons ShirLey J. Hansen, Ph.D. Jeannie C. Weisman Published by THE FAIRMONT PRESS, INC. 700 Indian Trail Lilburn, GA 30047

Page iv Library of Congress Cataloging-in-Publication Data Hansen, Shirley J., 1928 Performance contracting : expanding horizons / Shirley J. Hansen, Jeannie C. Weisman. p. cm. Includes index. ISBN 0-88173-276-1 1. Energy industries. 2. Conrracting out. I. Weisman, Jeannie C., 1950-. II. Title. HD9502.U52H3651998658.2--dc2197-35101 CIP Performance contracting : expanding horizons by Shirley J. Hansen, Jeannie C. Weisman. 1998 by The Fairmont Press, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher. Published by The Fairmont Press, Inc. 700 Indian Trail Lilburn, GA 30247 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-88173-276-1 FP ISBN 0-13-095819-0 PH While every effort is made to provide dependable information, the publisher, authors, and editors cannot be held responsible for any errors or omissions. Distributed by Prentice Hall PTR Prentice-Hall, Inc. A Simon & Schuster Company Upper Saddle River, NJ 07458 Prentice-Hall International (UK) Limited, London Prentice-Hall of Australia Pty. Limited, Sydney Prentice-Hall Canada Inc., Toronto Prentice-Hall Hispanoamericana, S.A., Mexico Prentice-Hall of India Private Limited, New Delhi Prentice-Hall of Japan, Inc., Tokyo Simon & Schuster Asia Pte. Ltd., Singapore Editora Prentice-Hall do Brasil, Ltda., Rio de Janeiro

Page v CONTENTS Section I. Performance Contracting Today 1 1 The Energy Opportunity Where We Are How Far We've Come Pushing the Envelope 3 2 The Money Side of Energy Cost-effectiveness Cost of Delay Cost Avoidance 13 3 The Fine Art of Solicitation and Selection Preparation Developing the RFQ/RFP RFQ/RFP Format Establishing Criteria The Evaluation Process 27 4 Measurement and Verification A History of Uncertainty M&V Options and Applications Measurement Devices Data Drag 51 5 Financing Energy Efficiency Creating Bankable Projects The Owner's Perspective A Primer on Financing 69 6 Contracts and Negotiations Planning Agreement Energy Services Agreement Negotiation Strategies 83 7 Managing Performance Contracts Management Strategies for Owners Project Assessment Construction Management ESCO Management Strategies Effective Communications 103 Section II. Managing Risks 127 8 Owner Risks and Mitigating Strategies

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