Energy performance contract template: clauses to check before signing

The Décret tertiaire (France's tertiary decree on energy savings in commercial buildings) requires your offices of 1,000 m² and more to cut their consumption by 40% in 2030, compared with a reference year^{[1][1]RegulationFrench Republic, “Decree No. 2019-771 of 23 July 2019 on obligations to reduce final energy consumption in commercial buildings” (Décret tertiaire), codified in articles R. 174-22 et seq. of the Code de la construction et de l'habitation (French Construction and Housing Code), buildings of at least 1,000 m², final energy reduction targets (-40% in 2030, -50% in 2040, -60% in 2050 compared with a reference year)See in sources ↓}. An energy performance contract (EPC, called CPE in France) signed in 2027 will deliver only two or three annual reviews before that deadline. Yet the “energy performance contract template” file attached to the bid comes from the party that will carry out the works and collect the savings. We review this template from the building owner's side, clause by clause: target, monitoring, penalties, exit.

What an energy performance contract really commits to, and where to find a template

An EPC is a contract that commits the contractor to a measured result

An EPC is a contract: a contractual agreement between a beneficiary and a contractor. European law defines it this way: the provider undertakes to improve energy efficiency by an agreed level, verified throughout the term of the contract. Its works, supplies or services are paid according to that level, set in writing^{[2][2]RegulationEuropean Union, “Directive (EU) 2023/1791 of 13 September 2023 on energy efficiency (recast)”, article 2, point 33, definition of the energy performance contract (repeats the definition in article 2 of Directive 2012/27/EU, repealed with effect from 12 October 2025)See in sources ↓}.

In an EPC, what sets the contract apart from an operation and maintenance contract is the nature of the obligation. An obligation of means promises visits and adjustments. A guarantee of result promises an energy saving observed on actual consumption, with a financial penalty if it falls short. How an energy performance contract works in general is covered separately.

Services EPC, works EPC, global EPC: which type of contract for which project?

The type of EPC is chosen according to the project. A services EPC covers operation, maintenance and adjustments, without heavy investment. A works EPC adds work on the building fabric or the installations. The global EPC entrusts design, works and operation to a single company, sometimes extending to renewable energy production or a heat network. The wider the scope, the more the verification is open to debate.

The levers an EPC uses to reduce energy consumption

Reducing energy consumption rarely starts with equipment. The first saving lies in how the installations are run: HVAC maintenance, heating, ventilation and air-conditioning setpoints, schedules brought back into line, settings forgotten since handover. Next comes control through the building management system.

Works come last: thermal insulation, equipment renovation, lighting. A contractor who opens the discussion with equipment replacement secures its margin before the targets are met.

What the guarantee gives the building owner and what it does not cover

The performance guarantee transfers part of the risk: if the provider misses its commitment, it pays the gap. A guarantee is only as good as its measurement.

It covers the gap, not profitability. The payback period can grow noticeably longer on small commercial sites, even with the value of CEE energy-savings certificates (certificats d'économies d'énergie, France's white certificate scheme). Across a multi-site real estate portfolio, each building is costed separately.

Décret tertiaire, Grenelle law, carbon: the framework that weighs on the contract

Decree No. 2019-771 requires the commercial sector, for buildings of at least 1,000 m², to cut consumption by -40% in 2030, -50% in 2040 and -60% in 2050 compared with a reference year no earlier than 2010^{[1][1]RegulationFrench Republic, “Decree No. 2019-771 of 23 July 2019 on obligations to reduce final energy consumption in commercial buildings” (Décret tertiaire), codified in articles R. 174-22 et seq. of the Code de la construction et de l'habitation (French Construction and Housing Code), buildings of at least 1,000 m², final energy reduction targets (-40% in 2030, -50% in 2040, -60% in 2050 compared with a reference year)See in sources ↓}. This regulatory environment applies building by building. The EPC can become a way to meet the target.

The Grenelle law I (France's 2009 law stemming from the Grenelle environment forum) already mentioned the energy performance contract for central government buildings^{[3][3]RegulationFrench Republic, “Law No. 2009-967 of 3 August 2009” (Grenelle I law), article 5, use of energy performance contracts for central government buildingsSee in sources ↓}. Carbon footprint and greenhouse gases then feed the climate change reporting, while the contract only guarantees kWh.

Who drafts the contract, who signs it: the asymmetry to keep in mind?

The building owner signs the contract without having drafted it. The template comes with the bid, written by the party that will carry out the actions, calculate the savings and be paid on the result. More often than not, no one in-house reviews it with BMS expertise.

Without any bad faith, this setup produces clauses that are precise on the actions and vague on what is guaranteed. This imbalance is paid for from the first annual review.

The SNEC standard contract, published by FEDENE in 2021

The reference resource remains the standard contract of SNEC, the operators' trade association affiliated with FEDENE (the French federation of energy and environmental services), published in 2021^{[4][4]PDFStudies and reportsSNEC (FEDENE), “Modèle de Contrat de Performance Energétique & Environnemental” (Energy & Environmental Performance Contract template), standard contract aimed primarily at private buildingsSee in sources ↓}. It structures the agreement into articles and appendices to be completed. The document can be downloaded from a FEDENE page, blanks included.

Did you know? The standard contract published by FEDENE is dated 30 March 2021 and is aimed primarily at private buildings^{[4][4]PDFStudies and reportsSNEC (FEDENE), “Modèle de Contrat de Performance Energétique & Environnemental” (Energy & Environmental Performance Contract template), standard contract aimed primarily at private buildingsSee in sources ↓}. A public buyer who uses it as is must still adapt it to public procurement rules.

Resources for public procurement EPCs

For public buyers, the EPC most often takes the form of a global performance contract (marché global de performance), provided for by article L. 2171-3 of the Code de la commande publique (French Public Procurement Code)^{[5][5]RegulationFrench Republic, “Code de la commande publique” (French Public Procurement Code), article L. 2171-3, global performance contractsSee in sources ↓}. This contract combines operation or maintenance with quantified targets. Yet no guide exempts the buyer from organizing the verification of results.

What the available templates leave blank

The standard contract and the public guides alike leave open the points that decide everything: baseline values, adjustment formulas, measurement method, exit conditions. These values depend on your buildings: no guide fills them in for you. A template remains a starting tool, not a contract ready to sign. Each blank becomes a question to put to the contractor.

Which clauses are essential in an EPC template?

The clause checklist: expected content, question for the contractor, warning sign

To help you review the template, the grid below covers the eleven EPC clauses a contract must address before signing. For each, three markers: the expected content, the question to ask the contractor and the symptom that should stop you. Tick the questions as your written exchanges progress: the counter shows what is still outstanding.

Start with the warning sign, highlighted in yellow. A warning sign does not disqualify the contractor: it points to the clause to renegotiate. The most common example: a baseline set on a single year, without climate correction, which skews target achievement over the whole term. Ask these questions in writing before bids are submitted, because an oral answer binds no one at the first review.

Purpose and scope: buildings, uses and equipment covered

The scope states which buildings, uses and installations fall under the guarantee. A works EPC on a single site is not drafted like a services EPC covering multi-site offices. Demand the list of meters attached to each use. A vague scope makes it possible to exclude, after the fact, the use that is drifting, just before the review.

Baseline: the year and the data on which the whole contract rests

The baseline freezes the consumption against which every saving will be calculated. The clause specifies the year chosen, the readings used and the occupancy conditions over the period. The illustrative curve below compares the same heating year, raw and then corrected for HDD.

A cold reference year inflates the baseline: savings then appear without any action at all. The yellow area shows this climate surplus. A mild year has the opposite effect and penalizes the contractor. HDD correction brings both back to a normalized climate, provided the building management system supplies complete historical data.

Performance commitment: a percentage of final energy in black and white

The commitment is expressed in final energy, the energy your meters record, as a percentage of the baseline. Wording such as “the contractor implements the necessary means” turns the guarantee into an obligation of means. The provider commits to a rate or commits to nothing. Target achievement is judged on this percentage alone, not on the energy efficiency described in an appendix.

Influencing factors and adjustments: HDD, occupancy and floor areas

A building changes: occupancy, hours, leased areas, climate. The adjustment clause states how the baseline tracks these variations, with, for each factor (HDD, occupancy rate, floor areas), its formula and its source.

The real risk is called adjustment negotiated after the fact: once the first review is known, each party looks for the factor that works in its favor. The IPMVP protocol requires these rules to be clearly defined before implementation^{[6][6]Studies and reportsEVO (Efficiency Valuation Organization), “International Performance Measurement and Verification Protocol (IPMVP)”, measurement options A, B, C and DSee in sources ↓}.

Service levels and comfort: what the contractor is not allowed to degrade

A saving obtained by degrading comfort is not a saving. The service level sets the temperature ranges, availability hours and HVAC maintenance response times. It also settles the case of the VIP complaint, from the director on the top floor who demands 24-25°C all year round. Without a written rule, energy management gives way at the first manual override.

Measurement and verification plan: a written method before the first review

The measurement plan describes the method before the first review, never after. It names the IPMVP option chosen, the reference meters, the reading frequency and who is responsible for the calculation^{[6][6]Studies and reportsEVO (Efficiency Valuation Organization), “International Performance Measurement and Verification Protocol (IPMVP)”, measurement options A, B, C and DSee in sources ↓}. A third party must be able to redo each step with the same readings. The details are in a full guide on the M&V plan. A template without this appendix is incomplete.

Sharing savings beyond the guaranteed target

Beyond the guaranteed target, the surplus is shared according to a written ratio. The clause specifies this ratio, how the surplus is calculated and the payment date. It also states whether one year's surplus offsets another year's shortfall. The variants of gain sharing significantly change the contractor's incentive to exceed its guarantee.

Penalties when targets are not met

The financial penalties reflect the gap between commitment and observed result. The clause sets how they are calculated, then their cap. A cap that is too low empties the guarantee: the provider no longer has any interest in keeping its commitment. Finally, the finding that targets were not met must follow from the measurements, not from an annual negotiation.

Contract term: align it with the payback of the works

A term that is too short makes the works impossible to pay back: a works EPC that finances thermal insulation must cover its payback period. Too long, and it creates a dependency no one has assessed. The calculation therefore starts from the actions planned building by building, not from a standard term.

The mentions that determine the CEE bonus

Under certain conditions, an EPC framework qualifies for a CEE bonus: the certificates obtained are increased^{[7][7]RegulationFrench Republic, “Arrêté du 29 décembre 2014” (Order of 29 December 2014 on the implementing rules of the energy savings certificates scheme), article 6 (bonus for operations carried out under an energy performance contract, as worded by the order of 17 December 2021, following the order of 14 May 2020)See in sources ↓}. The contract must then guarantee at least 20% final energy savings for a minimum of five years, describe the baseline and have it checked by an accredited body or an external provider, provide for a penalty covering at least 66% of the cost of the observed gap and set the service levels, with a measurement plan and a written annual review.

A missing mention can cost the beneficiary the CEE premium, even though it sometimes features in the financing plan. Third-party financing follows a different logic: whoever advances the funds expects a share of the savings.

With these eleven clauses reviewed, one question remains that templates almost never address: where the data that feeds them comes from.

What the templates you are offered are missing: reliable measurement data

A guarantee backed by unreliable meters cannot be verified

Templates detail the formula that calculates the gap to the target. They rarely ask whether the meter feeding it tells the truth. Yet the guarantee of result will come out of these meters, read by the building's technical management system.

A guarantee backed by unreliable meters cannot be verified. The measurement plan then calculates correctly on wrong values. On the market, this point still passes for an operational detail.

From meter to annual review: the links where the guarantee is decided

Between the meter and the invoiced penalty, the data passes through seven links. Each one can skew the result without anyone noticing before the review. The diagram below follows this measurement chain: hover over or tap each link to display the failure most often found there.

A gap in the controllers' trend logging does not disappear: it is filled with an estimate, most often chosen by the party doing the calculation. An HDD adjustment without a written formula shifts the baseline at the precise moment the gap becomes awkward. The IPMVP calculation is rarely the weak link. The difficulty lies in the links that precede it, which the contract rarely assigns to a named person.

Data gaps, duplicates, invisible drift: the most frequent failures

The most common case remains the silent disconnection. A controller loses its link, the supervision system displays the last known value and the history fills with a flat line. Next come duplicates, when two BMS points report the same meter and the reporting adds both together.

Drift is more insidious. An under-reading meter masks a real energy drift as long as no one checks its readings against the invoices. No energy management solution corrects these faults: it just displays them in color.

Measurement uncertainty, the topic templates pass over in silence

The IPMVP protocol distinguishes four options^{[6][6]Studies and reportsEVO (Efficiency Valuation Organization), “International Performance Measurement and Verification Protocol (IPMVP)”, measurement options A, B, C and DSee in sources ↓}. A and B isolate a piece of equipment, with partial or full metering. C reads the site at the main meter, D relies on a calibrated simulation. Each carries a measurement uncertainty that the protocol encourages you to quantify.

The real contractual question lies elsewhere. If the observed saving falls within the uncertainty margin, who bears the risk? A contract that is silent on this point lets the contractor decide, review after review.

The data checks to carry out before signing

These technical checks come before the clause review. The building owner can have them carried out before the tender:

• Continuity of historical data over several full years
• Consistency between BMS meters and supplier invoices
• No duplicates in the points reported
• Date of the last calibration of each metering device
• Read access to the raw data

These five checks offer far better protection than yet another reporting tool.

From launch to exit: the life cycle of an EPC from the building owner's side

The contract timeline, from the audit to three years after exit

An EPC is judged over its whole term. The timeline below sets out the seven stages of the contract, from the initial audit to three years after the end. Tap a milestone to display what the building owner checks at that point.

Two milestones concentrate most of the risk. Handover of the works or actions determines the first year of monitoring, and therefore all the following ones. The end of the contract decides what you get back: BMS access, controller programs, the status of the overrides (manual overrides) left in place. These points are set at signing, because at exit no one has any interest in handing them over to you.

Audit and tender: freeze the baseline before the call for tenders

The baseline must be frozen by the building owner before the tender, never by the selected bidder afterwards. Preparing the file requires an audit on reliable historical data, then sending the same baseline to all bidders. A DPE (the French Energy Performance Certificate) does not replace this audit: it rates the building without saying whether its meters are reliable. This approach prevents a contractor from resetting the baseline to its advantage.

Handover of actions and first year of measurement

An untested action produces a wrong first year of monitoring. On a works EPC, handover includes functional tests: valves that respond, setpoints held, sequences in line with the functional analysis. An installation accepted on a mere declaration carries its faults into the reviews, where they become gaps to justify rather than defects to clear.

Annual reviews: what the building owner checks each year

Each annual review should be read as a calculation note. Check that the adjustments follow the signed method. Check the rate of missing data and how it is reconstructed. The client must be able to redo the finding of success or failure from the same raw files.

End of contract: the reversibility clauses to demand

Technical lock-in is among the malfunctions we come across most often in BMS advisory: the building owner can no longer modify its building management system without going through the incumbent BMS contractor. A long contract makes this risk worse.

The reversibility clauses list the administrator access rights with their security rules, data ownership and confidentiality, then the documentation of the controller programs. They also provide for training of the operations teams and the handover of the contracts signed with each supplier.

Three years later: avoiding energy drift once the contractor has left

Every operator knows the HQE-certified building (HQE is a French green building label) that ticks every box at handover and then overconsumes three to five years later. The EPC is exposed to the same scenario when no one has planned what happens to the settings: the contractor leaves, vigilance drops and energy drift resumes.

A complaint, a manual override, a temporary setting: the savings achieved erode without a sound. The portfolio's carbon footprint rises with it, while your climate commitments remain written into the reporting.

What Foobot checks in an EPC project

Make the BMS meters and historical data reliable before building the baseline

Our BMS advisory mission starts with the data. We track down disconnections, gaps in the history, duplicates and unexplained peaks, meter by meter. We then qualify what can go into the baseline. This reliability work stands on its own, before any choice of solution. The measurement plan then uses this historical data without reconstruction.

Test the BMS at handover and during the warranty year

At handover, we test what the BMS contractor declares as delivered: points read, setpoints written, sequences triggered under real conditions. The warranty year (defects liability period) is used to track the clearing of defects, action by action. We have seen BMS installations compliant on paper and unable to hold a setpoint three years after handover.

Measure savings according to the IPMVP protocol with HDD correction

We measure savings according to the IPMVP protocol, with an HDD correction whose formula is written before the first review. At Valeo, this method established -28.6% HVAC consumption, measured according to the IPMVP protocol. It illustrates the method, not an EPC. When the complexity justifies it, our AI Control regulates the HVAC every 15 minutes, without works. Sometimes, a simple sequence is enough.

Take back control of the BMS at the end of the contract

At exit, our Operations advisory puts the BMS back in the building owner's hands. We list the overrides (manual overrides), restore consistent sequences and keep only the useful alarms. Dependence on the incumbent BMS contractor recedes as access and documentation come back to you.

Sign a guarantee you will be able to verify

An energy performance contract only protects the building owner if every value in the review can be recalculated outside the contractor's files. The baseline, the adjustment formulas, the verification method and reversibility decide the outcome. Before signing an EPC, ask who makes the meters reliable, who calculates and who can challenge. If no one can answer, your project deserves a technical review before the first annual review, not after.

have your EPC project reviewed

Frequently asked questions about energy performance contract templates

Which types of project are eligible for an EPC?

Any commercial-sector project whose energy saving is calculated against a baseline. For offices, a works EPC covers deep renovation, a services EPC covers operation and control. Without reliable readings, neither can be verified.

What are the different types of EPC?

There is the services EPC focused on operation, the works EPC that includes investment and the global EPC that combines the two. The type of EPC depends on the project. A share of renewable energy can also come within the scope.

How does an energy performance contract work?

The provider commits to a quantified reduction in consumption compared with a baseline. The measurement plan, written before the first review, sets the calculation. Below the target, penalties apply; above it, the savings are shared.

What does an energy performance contract consist of?

EPC clauses cover the scope, the baseline, the commitment in final energy and the adjustments. Added to these are the service levels, the measurement plan, gain sharing, penalties, the term and exit.

How can you guarantee the effectiveness of an EPC?

By making the historical data reliable before freezing the baseline, then following the IPMVP protocol with a written HDD correction. Energy efficiency is proven with verified meters and calculations the building owner can redo themselves.

What is the impact of an EPC for industry?

On an industrial site, the EPC can cover the commercial-building part: office HVAC, staff facilities, AHUs. The payback is calculated after an audit of actual historical data. Financing can draw on an energy savings premium (CEE) if the contract contains the required mentions.

Sources

Sources and references

7 sources.

Regulation5

1. [1]French Republic, “Decree No. 2019-771 of 23 July 2019 on obligations to reduce final energy consumption in commercial buildings” (Décret tertiaire), codified in articles R. 174-22 et seq. of the Code de la construction et de l'habitation (French Construction and Housing Code), buildings of at least 1,000 m², final energy reduction targets (-40% in 2030, -50% in 2040, -60% in 2050 compared with a reference year)23/07/2019↑ 1 2
2. [2]European Union, “Directive (EU) 2023/1791 of 13 September 2023 on energy efficiency (recast)”, article 2, point 33, definition of the energy performance contract (repeats the definition in article 2 of Directive 2012/27/EU, repealed with effect from 12 October 2025)13/09/2023↑
3. [3]French Republic, “Law No. 2009-967 of 3 August 2009” (Grenelle I law), article 5, use of energy performance contracts for central government buildings03/08/2009↑
4. [5]French Republic, “Code de la commande publique” (French Public Procurement Code), article L. 2171-3, global performance contracts↑
5. [7]French Republic, “Arrêté du 29 décembre 2014” (Order of 29 December 2014 on the implementing rules of the energy savings certificates scheme), article 6 (bonus for operations carried out under an energy performance contract, as worded by the order of 17 December 2021, following the order of 14 May 2020)14/05/2020↑

Studies and reports2

1. [4]SNEC (FEDENE), “Modèle de Contrat de Performance Energétique & Environnemental” (Energy & Environmental Performance Contract template), standard contract aimed primarily at private buildings30/03/2021↑ 1 2PDF
2. [6]EVO (Efficiency Valuation Organization), “International Performance Measurement and Verification Protocol (IPMVP)”, measurement options A, B, C and D↑ 1 2 3