Mais conteúdo relacionado Semelhante a ABB - Sustainable Procurement by Philip Juneau at GIB Summit Semelhante a ABB - Sustainable Procurement by Philip Juneau at GIB Summit (20) Mais de Global Infrastructure Basel Foundation Mais de Global Infrastructure Basel Foundation (20) ABB - Sustainable Procurement by Philip Juneau at GIB Summit2. ABB is a global leader in power and automation…
…with leading market positions in main businesses
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2011-09-23 | 2
3. Sustainability
Socio-
Economic
Eco-
Efficiency
Socio-
Environmental
Environmental
Stewardship
Social
Progress
Economic
Success
1
23
Innovation
Revenue growth
Return on capital employed
Risk Management
Brand value
Margin improvement
Shareholder returns
Energy efficiency
Sustainable products
Clean tech markets
Resource efficiency
Product stewardship
Product Life-cycle
management
Emissions
Energy- and resource use
Environmental impacts
Waste releases and spills
Biodiversity
Employment and labor
relations
Human rights
Diversity and inclusion
Community involvement
Health & Safety
Job creation
Business ethics
Security- and crisis
management
Social investments
Learning & Development
Local economic impacts
Climate change
Access to electricity
Environmental regulations,
jurisdiction and claims
How to satisfy all stakeholders in a PBC?
Sustainable Procurement
What factors are driving our ABB offerings
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4. What are PBC’s?
Performance Based Contracting is a results-oriented contracting method
that focuses on the outputs, quality, or outcomes that may tie at least a
portion of a contractor’s payment, contract extensions, or contract renewals
to the achievement of specific, measurable performance standards and
requirements. These contracts may include both monetary and non-
monetary incentives/disincentives.
The purpose of performance based contracting is to obtain overall better
value, better performance, lower costs, or both. Performance based
contracting requires output/outcome-based specifications and procedures
that require the contractor to devise the most innovative, efficient, and
effective way to perform the work. Because of this, it is critical that a capable
and competent contractor be chosen.
Therefore, past performance evaluations and partnering are essential
elements to consider when selecting a contractor.
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2011-09-23 | 4
Performance Based Contracting (PBC)
Are they a useful tool in achieving sustainable service?
Source: Principles and Practices of Public Procurement: PERFORMANCE BASED CONTRACTING (2012)
5. Results-oriented for the customer
Contractor payment (return) is based on the achievement of specific,
measurable performance standards
Purpose is obtain overall better value, better performance and lower costs
Requires innovative, efficient, and effective ways to perform the work,
therefore a capable and competent contractor is mandatory
Past performance and partnering (relationship) are essential elements to
consider when selecting a contractor
© ABB
2011-09-23 | 5
Performance Based Contracting (PBC)
Are they a useful tool in achieving sustainable service?
Source: Principles and Practices of Public Procurement: PERFORMANCE BASED CONTRACTING (2012)
Sounds too good to be true…what is the experience from the market?
6. Market Challenges with EPC
Lack of legislative drivers outside of NAM has hindered adoption
EPC is often compared with other forms of Energy Supply Contracting in the
market, which causes confusion
EPC is relatively a small part of the entire retrofit/construction market
Traditional public tender/procurement process not conducive to EPC
Customer tendency for competitive bidding of parts, not buying the whole
Misperception of EPC in marketplace (i.e., are the goals of energy efficiency
and the customer’s business objectives aligned?)
Perception as ‘lack of value for money’ (i.e., I can do it cheaper via the
traditional route)
Lack of trust based on a completely new outsourcing model
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2011-09-23 | 6
Performance Based Contracting
Example: Energy Performance Contracting
7. Must Fulfill
Significant energy and operational costs
Medium/Large building(s) or multiple sites
Lack internal expertise to design & implement
solutions
Able to take a medium/long term perspective on
asset improvements over the entire lifecycle
Looking to minimize/transfer performance risk
Outsourcing approach and ability to trust
Possible Enablers
Lack of transparency of energy usage
Lacking access to capital to finance improvements
Needing to comply with new energy legislation
Green image requiring carbon footprint reduction
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2011-09-23 | 7
Performance Based Contracting
Ideal EPC Customer
8. Goal setting up-front together with all stakeholders
(workshops which set the priorities)
Lifecycle mentality must prevail over first cost
Solution design incorporating:
- energy efficiency,
- environmental and
- social factors,
ALL equally represented
Contract promoting a ‘win-win’ situation based on
risk/reward mentality and tied to performance
measurement
Project implementation with the ‘end goal’ in mind
(e.g., latent field conditions impacts more than
additional investment costs)
Measurement and Verification (e.g., IPMVP); you
can’t manage what you can’t measure
Transparency at all stakeholder levels
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2011-09-23 | 8
Performance Based Contracting
How to define, measure and monitor performance