Contracting

3.1/ Organisational aspects
3.1.1/ Initial momentum
Even with all the advantages described
in Chapter 2, an Internal Contracting
scheme can be undermined even
before it gets off the ground if the
decision-makers have concerns about
some of the following aspects:
– It implies a significant change in
business-as-usual procedures
– It requires the involvement of
several different units within the
institution
– Not all the decision-makers or
relevant staff are familiar with
energy management issues and/
or investment evaluation and/or
financial procedures
In order to implement Internal
Contracting successfully, political
support is essential. Convincing
executive directors to apply the
concept of Internal Contracting to their
organisation may require an internal
communication campaign. Such a
campaign should include the following
components:
– Providing information on energy
management, related financial
issues and potentials for energy
saving investments
– Raising awareness of and interest
in Internal Contracting
– Identifying staff interested in
innovative financing approaches–
the more high-ranking, the better.
It may take some time to gather 3.1.2/ Combining competencies
momentum for Internal Contracting and initial decisions
to be set up. Its advantages may have
to be brought forward many times, To develop a contracting scheme that
when discussing related issues such is different from the one that generally
as building renovation, energy costs or already exists, organisational tasks
financial constraints for investments.
Cost efficiency study have to be linked as shown below (see
Concrete examples may Energy-saving facilitate the project proposal figure 5). Depending on the size of
“Client”
discussion: Energy
the organisation, Technical these departmentp
tasks could be
Department
or municipally-owned
Financing agreement linked to individual company
persons within one
3 Identify uncontroversial
working unit or to several units, each
investments which have resulted in charge of one task. Thus different
in energy Revolving efficiency g improvements people, who not only Client have different
fund
Department’s
(e.g. replacing damaged windows). working experiences,
Budget
but also different
3 Illustrate how Internal Contracting working skills, have to come together
could work on these easy to grasp Energy to understand cost reduction the contracting idea and
examples.
to adapt it to their internal procedures.
3 Outline how Internal Contracting
Financing
Energy-saving
g
can enable further investments in 3 Do not underestimate measures the effort
(advanced) energy savings or the required for the joint learning
Investment repaid by the savings
use of renewable energy.
process and for people to become
familiar with the cross-linked,
transversal approach of Internal
Contracting.
Facility/
property
management
Accounting/
budgeting
Internal
Contracting
Construction/
physical
implementation
Energy
management
Figure 5: Tasks of an organisation needing to be connected to set up Internal Contracting.
BUILDING DEPARTMENT
ACCOUNTING DEPARTMENT
Energy Saving blocks
other building investments
No incentive,
as no direct benefit
Not qualified/authorised for
investment decisions
Tight budget for earmarked
operating costs
Special budget for energy saving investments
Long-term holistic approach considering total costs and benefits of projects
Department responsible for Internal Contracting
Infinite Solutions Guidebook – Internal Contracting
Energy Performance