Public institutions are squeezed from both sides: aging building portfolios on one hand, and tight budgets on the other. In this reality, most approaches fall short. On the other hand, outcome-based contracts don’t. They deliver something few others can: certainty.
With outcome-based contracting, uncertainty is eliminated from the start. At bid submission, the institution knows the exact project cost, not a ballpark estimate, but a binding contractual commitment. The price cannot change unless the scope does. No surprise overruns. No creeping extras.
And the guarantees don’t stop there. Incentives from programs like the Low Carbon Economy Fund, IESO Save on Energy Programs or the Clean Economy Investment Tax Credits are locked in from day one. Projected energy savings are not only calculated — they’re contractually guaranteed.
Therefore, this empowers facility managers to move beyond guesswork. Decisions can be made on hard numbers, net present value, and measurable commitments — not hope or speculation.

«Lakeridge Health’s requirements for this project were to deliver the project on time with a guaranteed savings of 3,530 ton carbon emissions. »
With outcome-based procurement, delays and overruns are not the norm. By integrating engineering, construction, and commissioning under one unified approach, the usual disconnects vanish. Projects move faster, smoother, and with far fewer risks.
In a world of uncertainty, outcome-based contracts deliver what institutions need most: security, predictability, and guaranteed performance. That’s exactly why Lakeridge Health in Toronto chose this path — and why more public institutions are turning to it to protect their building portfolios, cut risks, and lock in long-term value.