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Utilities Management Agreements

Where the scope of the services covers utility plant and equipment such as CHP, steam, refrigeration or compressed air, choosing a utilities management provider is critically important. The contract will cover an area of potential significant risk, involve great cost and be in place for many years. It is therefore essential to find the right partner.

Every organisation has different drivers and priorities and it is vital to find a provider and contract that meets the organisation’s objectives and that also delivers a value for money, quality service with the right penalties and incentives to optimise production, operational and energy performance.

Using our significant experience of working within utilities management organisations, we can de-risk this process through a robust tried and tested approach to:

  • Evaluation of business needs and drivers
  • Assessment of the current utilities management delivery
  • Asset evaluation
  • Benchmarking
  • Identification of the best scope to meet financial and organisational objectives
  • Evaluation of alternative external and internal service providers
  • Development of an appropriate utilities management strategy
  • Development of KPIs, SLAs and key deliverables (e.g. risk approach, continuous improvement, penalties and other incentives)
  • Most suitable tender and tender approach to get the best deal
  • Business case development
  • Negotiation of the Utilities Management Agreement
  • On-going performance monitoring

Our utilities, energy and operational specialists fully understand the practical technical details as well as the contract minutiae, the commercial judgements to be made, the allocation of risks, the incentives of both parties and all the potential pitfalls.

They can unpick the terms of the contract to ensure a balanced approach of risk and reward for the contractor and client and will ensure:

  • Robust development, negotiation and conclusion of a Utilities Management contract
  • Contract transparency
  • Objectives and drivers are met
  • Integrated design methodologies reduce capex and maximise savings
  • On-going management of the contract once it is in place
  • Risk mitigation

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