Contracting and building renovation – does it work together?

Panel: Panel 5: Energy efficient buildings

Authors:
Jan W. Bleyl, Graz Energy Agency, Austria
Gerhard Bucar, Graz Energy Agency, Austria
Wibke Tritthart, Inter-University Research Centre for Technology, Work and Culture, Austria
Susanne Bruner-Lienhart, Inter-University Research Centre for Technology, Work and Culture, Austria

Abstract

The renovation or refurbishment is an important point in the life cycle of a building that makes it possible to achieve both environmental and climate protection goals and a higher quality of living of the inhabitants. However, lack of money often leads to a renovation that covers only the basic requirements, whereas measures that are valuable in a long term perspective like energy saving measures are not realised. Energy performance contracting (EPC) is widely used as an instrument to reduce long term operating costs significantly by guaranteed energy savings. An energy service company (ESCo) implements saving technologies, especially in the field of heating, HVAC, lighting and plug loads, and in particular in public buildings. It is the aim of this paper to investigate the possibilities to incorporate construction measures like building envelope insulation into standard energy performance contracting.

For this purpose a qualitative survey is presented that was performed among experts and stakeholders in the business: ESCos, building owners and facility managers, representatives of construction companies and financing institutions were interviewed. The focus was on their experiences with such projects, on difficulties that arose or barriers that exist from their point of view and on the chances they perceived. This provides the basis for identifying restraints and supporting factors for the integration of contracting and constructional measures.

Three pilot projects that have been renovated in Austria are outlined subsequently. They are evaluated with respect to the contractual network between the project partners, types of guarantees and financing issues. Special emphasis is put on the assignment of tasks and the cash flow between the project partners. Various constellations of trades acted as energy service provider: a general contractor, an energy supply company, a consortium of a builder and a plumber. The projects reveal some differences to the standard energy performance contracting. First of all, pre-financing of the renovation measures out of savings was not within the scope of any pilot project. The construction measures outweighed the HVAC upgrading measures in volume by far and were financed by the building owner. The energy saving guarantee was considered the main advantage of EPC and the reason for negotiating the energy performance contract.