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19 Constr. Litig. [1] (2010)

handle is hein.aba/cstrul0019 and id is 1 raw text is: 













                                       Construction Litigation Committee

                                       www.abanet.org/itigation/committees/construction
                                                                  Spring 2010 Vol.19 No. 1






     sputes and Lit gat    on of Energy Sayngs
                  Performance Contracts

A, By Aaron P. Silberman


Aaron  P.       The federal government incurs billions
Silberman       of dollars in energy and water costs
annually. Recent statutory mandates compel govern-
ment agencies to conserve energy and water and reduce
these costs. While there are available measures for the
government to do so, many of these measures would
be prohibitively expensive using appropriated funds.
A way in which agencies increasingly have solved this
dilemma is through energy savings performance
contracts (ESPCs). State and local governments' and
commercial owners' use of ESPCs is growing as well.
   ESPCs are authorized by statute and regulation.
They enable the government to obtain energy- and


water-saving measures through private investment. The
government  only pays the contractor, or energy savings
company  (ESCO), to the extent that promised savings
are realized. While it does not take ESP to see that the
future of ESPCs is quite bright, these contracts also pose
many  challenges-some unusual or unique-that may
lead to disputes between project participants.

What  Are ESPCs?
Under an ESPC, the government hires an ESCO to
perform a detailed energy survey to identify areas
in which a government facility can reduce its energy
                                  Continued on page 10


    Advising Clients in Green-Building

Disputes: Four Steps for Defining Roles

                    in  LEED Projects

                       By Jennifer  Grippa


Sustainability has hit the construction market, and
sustainable practices and policies are becoming a
battleground for owners, architects, contractors,
subcontractors, and engineers, among others. Parties
attempting to incorporate green-building standards
into their construction contracts are having difficulty


                                          Jennifer
allocating responsibility, particularly    Grippa
when  standards like Leadership in
Energy and Environmental  Design (LEED) call for
an integrated process that requires input from the
owner, architect, contractor, mechanical engineer,
                                  Continued on page 14


1-Published in Construct!, Volume 19, Number 1, Spring 2010. D 2010 by the American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof
may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.

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