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>Comprehensive Risk Assessment Framework and Model Development for Energy Performance Contracting Retrofits in Correctional Facilities
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Comprehensive Risk Assessment Framework and Model Development for Energy Performance Contracting Retrofits in Correctional Facilities
Energy performance contracting (EPC) has been used widely on buildings with deferred maintenance and ongoing building operations and maintenance concerns, such as correctional facilities. Despite its growing use, there is little research regarding contractor's risks in the delivery and execution of such projects and virtually no research on correctional facility retrofits. This paper proposes a risk management framework and model for correctional facility EPC retrofits. Data collection was accomplished through a comprehensive literature review and Delphi-based expertise elicitation from 19 EPC professionals. A risk analysis and evaluation framework was developed that included quantitative and expert-based information using scenario-based failure mode and effects analysis. Seventy seven risk scenarios were developed and evaluated using expected cost. Scenarios were developed into a model which was applied to a correctional facility EPC retrofit. The most critical risks resulted from five root causes: reduced availability of "low hanging fruit," misunderstanding existing conditions, actual climate conditions outside the range of planned conditions, facility age and current code requirements, and investment grade audit conducted too quickly. This model is expected to help energy service companies make better-informed decisions about their risk management approach on correctional facility retrofits, which are more complex than traditional retrofits.
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