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Key Differences <br /> Traditional Bid / Spec Performance-Based <br /> Low bid awarded based on specifications Bid awarded based on performance & <br /> lifecycle costs <br /> Project costs funded by capital budget Payments for project are offset by <br /> guaranteed savings <br /> Piecemeal approach Comprehensive approach <br /> Up-front fee for evaluation/studies No up-front fee required <br /> Performance & savings are not guaranteed Long-term performance & savings are <br /> guaranteed <br /> Multiple contracts with multiple vendors One contract, single-point accountability <br /> Contractors have no accountability to Performance-based contractor is tied to <br /> reduce energy or maintenance costs providing savings over term of contract <br /> Owner assumes risk Performance contractor takes risk <br /> 7 ©2012, Johnson Controls , Inc. —Confidential & Proprietary Johnson i/ <br /> Controls <br />