ABSTRACT
As essential as measurement and verification (M&V) is to energy performance contracting (EPC), it can add value to the global project in many different ways. M&V costs should normally be small relative to the monetary value of the savings being evaluated. In the development and negotiations of an M&V approach for an EPC project, the parties should refer to the fundamental principles in order to find the right balance between cost and accuracy. One of the most important aspects of M&V is the development of a plan, which is adapted for a specific project. The lack of presence of a good M&V plan is one of the major causes of litigation in the EPC business. As M&V is well recognized as one of the fundamental tools for the success of energy efficiency projects and programs. In the specific case of an EPC project, the most common approach is to have the Energy service company develop and implement the M&V plan.
