Last updated on Jul 7, 2024

You're expecting energy savings from vendors. How do you cope when results don't meet expectations?

When you partner with vendors promising energy savings, it's natural to anticipate a drop in utility bills and an increase in sustainability for your facility. However, when the expected savings don't materialize, it can be a source of frustration and concern. As someone responsible for facility management (FM), understanding how to address these shortfalls is crucial. You're not alone in this challenge, and there are strategic ways to analyze and overcome these hurdles, ensuring your facility remains efficient and cost-effective.

1 Assess Results

Once you realize energy savings are not aligning with projections, take a step back and methodically evaluate the results. Scrutinize the data to identify any patterns or inconsistencies. It could be that certain areas of your facility are not performing as expected due to equipment malfunctions or behavioral factors. Ensure that all energy-consuming systems are functioning optimally and that occupants are adhering to the intended usage patterns. This initial assessment is critical to uncovering the root cause of the discrepancy.

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2 Vendor Dialogue

Engaging in a constructive dialogue with your vendors is essential when energy savings fall short. Present your findings and ask for their input. A reputable vendor will be willing to work with you to troubleshoot the issues. They may offer additional services, such as more in-depth audits or training for your staff on how to best utilize their products. Remember, communication is key, and your vendors should be your partners in achieving energy efficiency.

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3 Analyze Contracts

Review your contracts thoroughly. Often, the devil is in the details, and you might find clauses related to performance guarantees or savings targets. If the vendor has not met their contractual obligations, discuss the available remedies. These could range from financial compensation to an extension of services at no extra cost. Understanding the legal framework of your agreements will empower you to negotiate and enforce the terms.

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Adriana Luz

Diretora Comercial - Simplifica Energia (Ludfor) | Membro do Comitê de Gestão do Future Is Now | Mercado Livre de Energia | ESG
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Analise Contratos de Energia com Cuidado É fundamental avaliar bem as premissas para auditar corretamente os números e obter bases de comparação concretas. É comum encontrar clientes comparando propostas com premissas diferentes e esperando os mesmos resultados, o que pode gerar expectativas irrealistas. Ter uma gestora ou consultoria especializada é essencial na contratação de energia, especialmente devido a pontos técnicos e regulatórios críticos. Esses contratos, muitas vezes com duração mínima de três anos, precisam ser bem escolhidos para garantir um bom desempenho e economia.

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4 Optimize Operations

Look beyond vendor-related issues and consider how you can optimize operations within your facility. Perhaps energy-saving opportunities are being missed due to outdated practices or inefficient resource allocation. By implementing changes such as adjusting HVAC schedules, retrofitting lighting systems, or promoting energy-conscious behavior among staff, you can enhance performance and work towards the savings you were expecting.

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5 Monitor Continuously

Implementing a system for continuous monitoring of your energy consumption is a proactive step towards ensuring savings are realized. Use energy management systems (EMS) to track usage patterns and detect anomalies quickly. Regular monitoring can also help in validating the effectiveness of any corrective actions taken and provide real-time data to inform future energy-saving strategies.

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Femi Adeyeye

Facilities Manager || Property Maintenance Manager|| Operation Manager
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Monitoring continuously will give a true value of the result. Facility Management operations are passive action. You must be deliberate about your result. Getting a true result at times take sacrifice because time is involved.

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6 Plan for Contingencies

Finally, it's wise to have contingency plans in place. If energy savings from vendors are not as expected, having a backup plan can mitigate financial impacts. This could involve setting aside a budget for unexpected energy costs or exploring alternative energy-saving measures that can be quickly implemented. Being prepared for different scenarios will help you maintain control over your facility's energy management even when external factors fall short.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You're expecting energy savings from vendors. How do you cope when results don't meet expectations?

1

2

3

4

5

6

7

1 Assess Results

2 Vendor Dialogue

3 Analyze Contracts

4 Optimize Operations

5 Monitor Continuously

6 Plan for Contingencies

7 Here’s what else to consider

Facility Management (FM)

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You're expecting energy savings from vendors. How do you cope when results don't meet expectations?

1

2

3

4

5

6

7

1 Assess Results

2 Vendor Dialogue

3 Analyze Contracts

4 Optimize Operations

5 Monitor Continuously

6 Plan for Contingencies

7 Here’s what else to consider

Facility Management (FM)

Rate this article

Thanks for your feedback

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