PC-OR protects your organization’s interests while saving you 10-20% on project costs.

About Us

Performance Contracting Owners Representatives (PC-OR) is a consulting firm serving as owner’s representatives for clients considering performance contracting. PC-OR professionals help expertly navigate the performance contracting process, saving you and your staff both time and money. Our experience enables us to keep your best interests protected. From the planning stage to writing RFPs, proposal evaluation, implementation, and verification, we help ensure your organization’s success.

What is Performance Contracting?

Performance contracting is a specialized purchasing and construction method that utilizes the design-build process. A single company designs and oversees construction or facility renovations. It is done under a “performance contract” which guarantees the outcomes. Guarantees typically include a fixed total installed cost, operating performance of the systems, and the resultant energy savings for an agreed upon period of time.

Why use Performance Contracting?

Performance Contracting (PC) can provide many advantages when implemented correctly and in accordance with client organization’s best interests. Key advantages include (but are not limited to):

Creates a new source of funding. PC reduces current operating costs and turns the savings into a new source of funds for facility renewal. Smart organizations are using this to help accomplish strategic plans.
Provides more accountability. PC (ideally) provides more accountability by holding a single vendor responsible for design, implementation, covering any cost over-runs, and attainment of projected savings.

Sounds great. So why do I need an owners representative?

As your Owners Representative, PC-OR can help you:

Protect your organization’s interests
Save 10-20% of project costs (savings of $100,000-200,000 per $1 Million of project size.)
Save time for you and your staff

Although simple in concept, Performance Contracts contain many complexities and risks that go unnoticed until it’s too late. In addition, most energy savings performance contracts are developed by Energy Service Companies (ESCOs) or by Vendors trying to sell their equipment. Their primary interest is in winning the project and maximizing their profit. This is typically in direct conflict with the owner’s best interests.

ESCOs and Vendors also use numerous tactics to eliminate or reduce competition and risk for their companies. In addition, their proposals are typically 300-400 pages long, plus utilize contracts that are frequently 75-100 pages. These contain various recommendations, equipment, costs, and savings which make it difficult for owners to easily compare proposals and competing firms.

PC-OR helps you navigate this process…saving you and your staff significant time. In addition, PC-OR reduces your risks and improves project outcomes. We help plan what to include or exclude, write RFPs, ensure competition, evaluate vendors and proposals, and review contracts to ensure quality installations and real savings. PC-OR also identifies underlying factors that generate swings in savings that dramatically skew financial results…a critical element in evaluating proposals.

Still undecided? See if you can answer these critical questions:

Why do the best Vendors not respond to (or “no bid”) typical RFPs?
What are three key tactics Vendors use to eliminate real competition?
How do Vendors create the illusion that you are getting more equipment or value for your money vs. their competitors?
How do Vendors make their guarantees appear much stronger than they really are?
How do Vendors make margins far in excess of stated profit and overhead?
How do Vendors avoid paying for savings shortfalls?
How do Vendors use service contracts to extend their profit at your expense?
Why do Vendors not detect problems during commissioning, but problems arise after your sign off?

References:

"We are not experts in energy management...we run schools. But, managing energy expenses are a great way to protect educational programs. Energy Performance Contracts are effective vehicles to achieve savings and improve facilities. The process is complex, and the support of objective advocacy services from someone with Kurt's expertise is an invaluable resource!"

-Peter Haines, Superintendent
Greenville Public Schools (Michigan)