The Importance of Properly Setting the Baseline for Performance Contracts

摘要

Measurement and verification for performance contracting is necessary to verify the achieved savings. In some cases, verified savings is required in order to repay the capital investment for the project. One key, but often overlooked, element is the establishment of the baseline to be used. In a lot of performance contacting projects, actual construc- tion of the energy project becomes paramount to all parties, and a base- line becomes a neglected or secondary element. Because the project typi- cally requires replacement of old, inefficient equipment, establishment of a baseline after completion of the project is virtually impossible. This article will discuss the importance of properly establishing a baseline for PC projects, including acceptance by all parties.