Ideas for the industry November 11, 2015

What is Integrated Energy Performance Contracting (IEPC)?

Asset renewal Contractual approach Value creation Whole-system design

A Contract that Aligns Stakeholder Interests

Integrated Energy Performance Contracting (IEPC) ensures that companies are responsible for delivering results as promised, by linking their compensation to performance targets. The client and the IEPC company share common goals and are compelled to collaborate, which maximizes project benefits. A contractual commitment to results also encourages the company to invest greater effort in design and develop innovative solutions, which further contributes to project success.

Working with the End in Mind

Achieving ambitious financial and environmental goals—above and beyond the industry standard—begins with a specific type of procurement model. Rather than the typical approach that favors lowest bidder, the IEPC procurement process favors the company that commits to delivering the project with the greatest long-term value, measured in terms of net present value (NPV).

When it comes to project implementation, as the name suggests, IEPC focuses on integrated delivery. A single multidisciplinary company forms a project team with the client’s technical staff and carries out all phases from design to hand-off, ensuring effective knowledge transfer and an efficient sequence of work. IEPC projects also take an integrated approach to assessing and designing infrastructures, evaluating the different electromechanical systems as a whole and determining how they can work in synergy to produce optimal results.

IEPC project management is agile, and the project team resolves issues as they arise and makes adjustments as needed during project implementation, in order to reach and surpass the performance targets.

Explore the Pillars

The IEPC model can be described as the sum of seven fundamental characteristics: a full-service integrated project team, a whole-building approach, maximum value creation, aligned stakeholder interests, in-depth design, lean and agile management, and innovation.

Download a printable document about the 7 IEPC pillars

Interested in learning more?