Contracting

Project cost-efficiency is calculated on the basis of the energy saving factor, a ratio based on the energy
measure’s lifetime.
Lifetime [years]
Energy saving factor = -------------------------------------------X 100%
Payback [years]
The energy saving factor should be more than 100%. Considering a lifetime of
factor for the total investment is %.
years, the energy saving
[Occasionally]
Since regular building maintenance work is in any event necessary, it is sometimes useful to implement the
measure in question. In this case, it may not be possible to recoup all the investment from the savings made.
Considering the capital invested by the energy department, the energy saving factor will then be …%.
5/ Estimation of saved energy costs
Saved energy costs are estimated by multiplying energy savings by an average energy cost. The average
energy cost is calculated on the basis of the previous year’s bill for the building. Saved energy costs include
VAT.
Saved energy costs are estimated by the energy department in agreement with the “client” department and
include any additional facilities, change in building use or any other changes that have an impact on energy
use.
6/ Implementation
The “client” department supervises the implementation of the energy measures in agreement with the
energy department, respecting the division of competencies.
7/ Building operation
The “client” department accepts the operation plan proposed by the energy department. Should financial
savings be less than estimated, the payback period will be re-calculated as per section 4 of the agreement.
The “client” department will report any change in building operation to the energy department.
8/ Payback
The capital invested by the energy department shall be reimbursed in full to the energy department with no
interest charged.
Payback corresponds to the annual amounts defined in this agreement.
Once per calendar year, in mid-year, the relevant budget item is debited of the relevant amount. The first
debit takes place in the year following the implementation of the energy saving measure
As per sections 3 to 8 of this agreement, the duration of funding is approximately years.
Invested capital
Duration of funding = ------------------------------------------------------------------
Annual savings x adjusted payback factor
City, date
Energy department
city, date
“Client” department
..............................................................................
Signature
..............................................................................
Signature
Infinite Solutions Guidebook – Internal Contracting