British Gas Trading Ltd – Guy’s & St Thomas’ NHS Foundation TrustLondon
Provision of commercial support to British Gas Trading Ltd to deliver an Energy Performance Contract at Guy’s & St Thomas’ NHS Foundation Trust.
Under an NEC Target Cost contract, British Gas was contracted to design and deliver energy saving measures to Guy’s and St Thomas’ Hospitals, which were guaranteed to produce energy savings of £1.2 million per year, guaranteed and underwritten for a 10-year period.
The design and management elements of the contract, worth £2.5 million, were fixed costs but the construction direct costs of £6.6 million were reimbursable, with a clause under which the contractor benefitted if the savings were delivered at a lower actual cost.
The contract lasted from December 2015 to January 2019 and savings of £1.3 million per year were achieved with the contractor managing to achieve a significant underspend of the reimbursable costs.
The energy savings were achieved through a variety of measures including:
LED lighting retrofits
Motor replacements with invertor driven controls
High efficiency filters on AHUs
Replacement of faulty valves
Timer controls added to air conditioning units
Optimising BMS controls and time of day scheduling
Replacing boiler burners
Installing flue economisers and oxygen trim on boilers
Insulation repair/replacement and installation of valve muffs
Installation of over 150 meters to monitor usage and assist the Hospital Trust with billing tenants
A significant amount of backlog maintenance identified by the Trust
Ridge provided commercial support in the following areas:
Preparation of NEC main contract
Procurement of all Subcontract Packages
Agreement of Compensation Events with the client and with subcontractors
Preparing Applications for Payment for British Gas and certifying payments to subcontractors
Agreement of all Final Accounts including negotiating contractor share and resolving disputes
Negotiating termination fee to cancel ongoing saving monitoring over 10-year ‘service’ period