ABSTRACT
Energy performance contracting (EPC) is by essence a contractual relation between a project beneficiary and an Energy service company (ESCO). It is strongly recommended that in preparing a request for qualifications or proposals, copies of an EPC contract recently executed with a similar organization by an ESCO under consideration should be requested and then carefully reviewed to get a sense of what the firm really expects. Fundamental to any energy performance contract is the recognition that the project must perform over time. The term, performance contracting, emerged as the accepted label since the energy service company must perform to a certain standard as a condition of payment. Any good performance contract will provide a clear understanding of each key contract element. The usual contract language absolves the ESCO of certain contract responsibilities under force majeure, or acts of God. The ESCO typically presents a printed contract as the basis for agreement.
