Case study: shared benefits in energy

This case study illustrates a new approach where the customer and supplier both receive benefits from contracting together.

Read through this 2014 article ‘From Simple Payback to Shared Savings: Turning Project Risk Assessment on Its Head’ on Energy Manager Today’s website to find out more about this approach and how this is achieved without the exchange of ownership of assets which would previously have been the only way to make this happen.

You may also be interested in a more technical description of this type of contract, from the European Commission Joint Research Centre Institute for Energy & Transport, which is available from a link at the bottom of this page.

Do you see any problems with this approach?

Are there any situations in your work environment where a similar contract might be possible? What difficulties would need to be overcome?

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This article is from the free online course:

Contract Management: Building Relationships in Business

University of Southampton