Working on a large industrial project here in Hartford (Eversource territory) and need to bring in an energy advisor for comprehensive demand analysis and efficiency recommendations. This is my first time contracting directly with an advisor rather than going through a broker. What should I include in the contract to protect both parties? Looking for advice on payment structure, deliverables, liability, etc. The project involves about $2.5M in annual energy costs, so getting this right is critical.
Best practices for energy advisor contracts?
Vince, I do a lot of direct advisor contracting here in Knoxville with TVA accounts. Key things to include: specific deliverables with deadlines, clear scope of work, liability insurance requirements (minimum $1M), and payment tied to milestones rather than just time spent. Also include language about data confidentiality - they'll see sensitive usage and cost information. Make sure there's a clear process for handling scope changes.
Terry's advice is solid. I'd add - include specific performance metrics for any recommendations they make. If they're suggesting efficiency measures, require documented savings calculations with conservative assumptions. Also consider including a clause that ties part of their fee to actual achieved savings over 6-12 months. Keeps everyone focused on real results, not just pretty reports.
Great thread. From my experience in Birmingham with Alabama Power accounts, also make sure the contract addresses ownership of any intellectual property or proprietary analysis methods they develop. You don't want to be locked into using only that advisor for future updates or modifications. Include reasonable termination clauses for both parties if things aren't working out.