Pillar 4: Collaborating for Success
Because IEPC spreads risk and reward, it encourages parties to collaborate. Early in the process they agree to performance targets for the industry professional to achieve.
Both parties benefit when the targets are met—or even exceeded—because the owner and industry professional operate under aligned goals. Payment is based on performance, not a percentage of construction costs or an hourly fee.
The industry professional charges a flat fee for achieving the agreed upon targets, but must pay a penalty if the targets aren’t reached. Conversely, if savings exceed targets, the industry professional and building owner can share the additional savings. Success of the team becomes success of the project.
Together, the stakeholders also establish guarantees that make the project more bankable.
This balance of risk and reward fosters a spirit of openness and mutual trust that leads to productive and creative effort.