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Isn't this a Maintenance issue?
No, this is a financial decision. Air-Care Electrostatic Filters are proven to outperform most disposable filters and with a maintenance solution included in our proposal, your maintenance needs are met. We offer a vehicle to save your school district significant dollars without sacrificing performance.
What is a Performance Solution?
The Permanent Filter Company offers a performance solution that improves indoor air quality while saving significant dollars. Our solution replaces the wasteful habit of “throw-away” air filters with state-of the-art Air-Care Electrostatic Filters that have a Lifetime Warranty and includes all the filter maintenance. We guarantee that savings will exceed current annual expenditures to cover all project costs including filter maintenance, usually over a contract term of seven to ten years. If your savings don’t materialize, we pay the difference, not you.
Additional building improvements can be funded through this performance solution - new lighting technologies, boilers and chillers, energy management controls and swimming pool covers, to name a few.
Will modifications need to be done to my HVAC units?
No equipment modifications are necessary to convert to Air-Care Electrostatic Filters. We carry a full range of standard sizes and if necessary we can custom manufacture a filter to your specific needs.
How is indoor air quality improved?
Air-Care Electrostatic Filters have a MERV 6-8 rating, the higher the MERV rating, the better the air filtration. This number can be used as a comparison to your existing air filters. Most disposable air filters have a MERV 2-6 rating.
What are the risks?
Under a performance contract, we absorb the risk. Your guaranteed savings pay for the conversion and maintenance, so you experience no up-front costs. If the savings don't materialize, we pay the difference; not you.
What are the benefits?
More Efficient and Reliable HVAC Units
By outsourcing filter maintenance under a performance solution, we guarantee all filters will be serviced on time. HVAC units will have fewer breakdowns and reduced maintenance.
A Wise Investment
Performance contracting allows you to divert funds that would be wasted on “throw-away” filters into investments in your buildings. For schools and governments, this means limited budgets can stretch further, using taxpayers' money where it really counts.
Improvements Without Sacrifice
Performance contracting allows you the opportunity to take advantage of a long-term savings solution even when immediate funding is not available. This means you can afford much-needed improvements when faced with budget cuts and/or competing priorities. And, with performance contracting, you can take a comprehensive approach that will optimize benefits.
Cost Savings
Elimination of a solid waste stream and improved filtration further reduce operating costs. Many facilities experience an additional savings of 10-20% by reducing their long-term maintenance costs.
Proven Technology and Expertise
Since the late 1970s, performance contracting has become a widely accepted and reliable way to fund improvements. Today's standard practices and proven technologies result in satisfied customers.
One-Stop Shopping
A performance solution offers a streamlined approach to making additional facility improvements because, with a single contract, you can tackle multiple projects throughout your facility. We can provide a full range of services and continue working with you once projects are complete to ensure that you get optimal long-term performance.
Are there upfront costs?
No, all associated costs are covered under the performance solution. We perform all the measuring, installation, filter manufacture, and filter maintenance for the life of the contract.
Can my payments change?
No, under a performance contract your yearly costs are fixed with no surprises.
Does a performance contract increase my debt?
No, since your project is funded by operating costs, it's “off balance sheet” and does not affect debt-load.
Are there different kinds of performance contracts?
While there are a number of different ways to structure a performance contract, the model most commonly used is the “guaranteed savings” contract. In a guaranteed savings contract, all of the costs of the project are repaid annually out of the savings as they accrue. The contract length is usually chosen such that all of the project costs are paid out by the end of the contract period.
How long is the typical contract?
Performance contracts typically run from four to ten years, dependent upon the complexity of the project, the amount of savings to be achieved, and the types of measures to be implemented. Oftentimes contracts can be extended as business and facility owners look to do additional upgrades.
How do I know that the savings are being achieved, and what if they aren’t?
Verifying that savings actually occur is an important part of any performance contract. The most common method used to verify savings is a comparison of expenses. A baseline is determined using past expenses, and then savings are calculated using the actual costs throughout the contract period.
Does performance contracting only work for projects of a certain size?
Performance contract projects must be of sufficient size such that the savings generated by the project cover costs over the length of time specified in the contract. Aggregating smaller projects into a single contract is a way to create the critical mass necessary to make performance contracting a viable option.
How are performance contract projects financed?
A performance contract may be financed in one of three ways: by the business itself, by a loan from a financial institution, or by the service company. If the service company provides the financing, it is termed “off balance sheet”; the business has no debt, and its only obligation is to pay the contractor the agreed upon fee that is usually less than current expenditures for similar products and services. If the business finances the investment, either on its own or through a financial institution, it does accrue debt, but the service company will typically guarantee that the savings will provide the cash flow necessary to repay the loan, and if not, make up the difference.
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