Can this agreement be signed electronically?

Yes. Electronic signatures that meet ESIGN (15 U.S.C. ch. 96) and UETA standards are generally enforceable in the United States provided the four ESIGN criteria are met: intent, consent, attribution, and record retention.

Is notarization required for validity?

Not typically for commercial energy contracts; notarization is usually optional unless state law, financing, or deed-related obligations require it. For actions affecting real property, obtain notary or witness support as needed.

When should witnesses or a notary be used?

Use witnesses or a notary when a lender, local recording requirement, or specific state statute mandates it—especially for instruments that convey property interests or create liens.

How are amendments handled?

Amendments should be written, signed by authorized representatives, reference the original agreement by date, and include effective date and any changed M&V or payment terms.

What if a signer’s name changes?

Document signature authority and corporate resolutions where names differ; corrected signature blocks and an executed amendment are typically sufficient for lender acceptance.

How long should executed contracts be stored?

Retain executed contracts and M&V records for the contract term plus recommended retention (generally at least three years; see IRS and industry rules) and longer where warranties or regulatory requirements apply.

Electronic Signature
Templates
Miscellaneous
Energy Services Contract

Energy Services Contract

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Energy Services Contract

This Energy Services Contract (the Contract) is made on (Effective Date) by and between Service Provider: with principal place of business at and Client: with principal place of business at .

WHEREAS

WHEREAS, Service Provider is engaged in the business of designing, supplying, installing and commissioning energy systems and providing related energy efficiency services; and

WHEREAS, Client desires to retain Service Provider to perform the services described in this Contract for the facilities identified in the Scope of Work and Service Provider is willing to perform such services on the terms and conditions set forth below.

WHEREAS, the parties intend by this Contract to set forth their respective rights and obligations with respect to the design, procurement, installation, testing and acceptance of equipment and services and the payment for such work.

SCOPE OF WORK

Service Provider shall furnish all labor, materials, equipment, supervision and services necessary to complete the work described below in accordance with the terms of this Contract. The work shall include design, procurement, installation, commissioning, performance testing, and training as specified.

Detailed Scope of Work

PERFORMANCE STANDARDS

Service Provider warrants that all services and equipment provided under this Contract shall conform to the requirements set forth in the Scope of Work and shall be performed in a professional and workmanlike manner in accordance with industry standards. If performance guarantees or energy savings guarantees are agreed, such guarantees shall be documented in an addendum and shall specify measurement and verification protocols.

PAYMENT TERMS

Client shall pay Service Provider for the services and equipment described in this Contract as follows. All monetary amounts are in U.S. dollars unless otherwise stated.

Total Contract Price Payment Schedule (describe milestones, deposits, retainage) Invoice Frequency Payment Terms (days from invoice) Late Payment Fee

All invoices not disputed in good faith within ten (10) days of receipt shall be deemed accepted. Client shall pay undisputed amounts in accordance with the payment terms. Amounts not paid when due shall accrue interest at the rate specified above and Service Provider may suspend performance after fifteen (15) days' written notice of nonpayment.

TERM AND TERMINATION

This Contract shall commence on and shall continue until unless earlier terminated in accordance with this Section.

Either party may terminate this Contract for convenience upon days written notice to the other party. Either party may terminate for material breach if the breaching party fails to cure the breach within thirty (30) days after receipt of written notice specifying the breach, provided that certain breaches that cannot reasonably be cured within thirty (30) days may be cured within a commercially reasonable period so long as the breaching party has commenced cure promptly and continues diligent efforts to cure.

CONFIDENTIALITY

Each party (Receiving Party) shall keep confidential and shall not use or disclose to any third party any non-public proprietary or business information (Confidential Information) of the other party (Disclosing Party) disclosed in connection with the performance of this Contract, except as required to perform the obligations hereunder or as required by law. Confidential Information does not include information that is or becomes publicly available without breach of this Contract, is already known to the Receiving Party prior to disclosure, is independently developed by the Receiving Party, or lawfully obtained from a third party not subject to confidentiality obligations. Each party shall use at least the same degree of care to protect Confidential Information as it uses to protect its own confidential information, but no less than reasonable care.

WARRANTIES; LIMITATIONS

Service Provider warrants that equipment furnished will be new (unless otherwise specified) and free from defects in material and workmanship for a period of one (1) year from acceptance, unless a longer warranty period is expressly provided. THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, EXCEPT AS TO TITLE. SERVICE PROVIDER'S LIABILITY FOR BREACH OF WARRANTY SHALL BE LIMITED TO REPAIR OR REPLACEMENT OF DEFECTIVE EQUIPMENT OR RE-PERFORMANCE OF NONCONFORMING SERVICES, AT SERVICE PROVIDER'S OPTION.

INDEMNIFICATION

Service Provider shall indemnify, defend and hold Client harmless from and against claims, liabilities, losses and expenses (including reasonable attorneys' fees) to the extent caused by Service Provider's negligence or willful misconduct in the performance of services under this Contract. Client shall indemnify, defend and hold Service Provider harmless from and against claims, liabilities, losses and expenses to the extent caused by Client's negligence or willful misconduct.

LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, SPECIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS OR LOSS OF USE. THE AGGREGATE LIABILITY OF EACH PARTY FOR ANY CLAIM ARISING OUT OF OR RELATING TO THIS CONTRACT SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY CLIENT TO SERVICE PROVIDER UNDER THIS CONTRACT DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

INSURANCE

Service Provider shall maintain commercial general liability insurance, workers' compensation and employer's liability insurance and professional liability insurance as applicable for the scope of the work. Prior to commencement of work, Service Provider shall provide evidence of insurance upon Client's request. The required coverage types and limits shall be as mutually agreed in writing in an insurance schedule to this Contract.

CHANGE ORDERS

Any change in the Scope of Work, price or schedule shall be set forth in a written change order signed by both parties. Service Provider shall not be obligated to perform any changed work without a fully executed change order documenting the adjustments to price, schedule and any other affected terms.

FORCE MAJEURE

Neither party shall be liable for delays or failure to perform resulting from causes beyond its reasonable control, including acts of God, strikes, pandemics, governmental actions, shortages of materials, or interruptions of utilities. The affected party shall provide prompt written notice to the other party and make commercially reasonable efforts to resume performance.

NOTICES

Service Provider Notice Address Service Provider Contact (name, phone, email) Client Notice Address Client Contact (name, phone, email)

GOVERNING LAW; DISPUTE RESOLUTION

This Contract shall be governed by and construed in accordance with the laws of the jurisdiction selected by the parties. Any dispute arising out of or relating to this Contract shall be resolved first by good faith negotiations between senior representatives of the parties. If such negotiations do not resolve the dispute within thirty (30) days, the parties agree to submit the dispute to mediation. If mediation fails, the parties may pursue any available legal or equitable remedies.

Governing Law (state or jurisdiction)

ENTIRE AGREEMENT

This Contract, including its exhibits and any executed change orders, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements, whether written or oral. No amendment or modification of this Contract shall be effective unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign this Contract without the prior written consent of the other, except that either party may assign to an affiliate or to a successor in connection with a merger or sale of substantially all of its assets.

Service Provider:

By:

Date:

Client:

By:

Date:

What an Energy Services Contract Is and When It’s Used

An Energy Services Contract is a written agreement between a client (owner, facility, or public agency) and a service provider that defines scope, performance targets, payment terms, and risk allocation for energy-related work such as efficiency upgrades, demand management, or on-site generation. These contracts commonly appear as performance contracts, guaranteed energy savings agreements, or operations and maintenance (O&M) schedules and govern work timelines, measurement and verification (M&V) methods, remedies for shortfalls, and responsibilities for permits and interconnection. Parties use these documents to align technical deliverables with financial terms and to document remedies, warranties, and post-installation support.

Why a Clear Contract Matters for Energy Projects

A well-drafted Energy Services Contract reduces disputes, clarifies payment linked to measured savings, and sets enforceable expectations for performance, measurement, warranties, and maintenance while enabling financing or incentives tied to measurable outcomes.

Who Typically Prepares and Signs This Contract

Owners, energy service companies (ESCOs), facility managers, and public procurement officers commonly prepare or request Energy Services Contracts.

Owners and facility managers seeking reduced energy costs and predictable operating expenses.
ESCOs and contractors offering retrofit, retrofit-plus-finance, or guaranteed-savings services.
Finance partners and public procurement teams that require clear M&V and payment schedules.

Multiple stakeholders—including legal, procurement, and technical teams—should review the contract before execution to confirm scope, M&V, and funding terms.

Core Contract Elements to Include

A professional Energy Services Contract should explicitly allocate responsibilities, quantify expected savings, and provide remedies, documentation, and timelines so performance and payments are measurable and enforceable.

Scope

Detailed description of equipment, services, and deliverables, plus installation and commissioning tasks that define vendor obligations and exclusions.

Performance Guarantee

Quantified energy or cost-savings guarantee with baseline methodology, measurement interval, and remedies when savings fall short.

Measurement & Verification

M&V plan referencing recognized protocols (e.g., IPMVP) or agreed metrics, including data sources, metering, and reporting cadence.

Payment Terms

Pricing structure (fixed fee, shared savings, or guaranteed savings), invoicing schedule, and late-payment consequences tied to verified performance.

Warranties

Equipment and workmanship warranties with duration, scope, and responsibilities for replacements or corrective work.

Termination

Termination triggers, cure periods, cause vs. convenience rights, and treatment of outstanding obligations or retained collateral.

Step-by-step: Completing an Energy Services Contract

Follow these sequential steps to ensure the contract is complete, accurate, and ready for execution by authorized signers.

01

Draft: Populate scope, baseline, and payment fields with technical and financial input.
02

Review: Legal and procurement verify terms, risk allocation, and compliance requirements.
03

Authorize: Obtain signatures from authorized officers and confirm signing authority.
04

Execute: Record dates, distribute copies, and begin measurement and verification.

Digital Workflow Settings to Configure

Configure electronic routing and fields to match your approval flow and to capture required evidence for M&V and audit.

Field	Configuration
Signature	Required for all parties; include title and date fields.
Initials	Place at key clause pages to document page-by-page consent.
Conditional Clauses	Show specific payment terms only when financing option selected.
Document Access	Set read-only for executed copies, editable before final signature.

Digital Signing and eSubmission Considerations

Use an eSignature platform that supports secure audit trails, consent capture, and the authentication level your transaction requires.

Authentication: Email link, SMS code, or stronger KBA depending on risk.
Audit Trail: Capture IP, timestamp, and action log for each signer.
File Formats: Accept PDF and DOCX for templates and signed outputs.

Ensure the chosen platform supports ESIGN/UETA legal tests and retains records in tamper-evident formats for audit, financing, and compliance purposes.

Typical Electronic Signing Flow for This Agreement

A clear, reproducible signing flow reduces errors and preserves evidence required for enforcement or lender review.

Upload Document: Sender uploads the final contract file to the signing platform.
Place Fields: Sender adds signature, initials, and data fields for each party.
Authenticate Signers: Choose authentication (email, SMS, or higher) based on risk.
Sign and Archive: Signers execute; platform creates completed PDF and audit record.

Essential Security and Compliance Items

Encryption: AES-256 at rest

Transport Security: TLS 1.2/1.3 in transit

Audit Trail: Detailed event log

HIPAA: BAA available

ESIGN/UETA: Legal framework compliance

Access Controls: Role-based permissions

Risks and Consequences of an Incomplete Contract

Disputed Savings: Liability exposure

Payment Delays: Cashflow disruption

Contract Voidance: Enforceability risk

Regulatory Noncompliance: Permit or incentive loss

Financing Rejection: Lender disapproval

Audit Failure: Contractor penalties

Common Preparation Errors to Avoid

Leaving the baseline method undefined, which leads to later disputes over what constitutes 'savings' and creates measurement ambiguity.
Using vague payment language or undefined triggers that make invoices and holdbacks difficult for finance teams to accept.
Failing to name an M&V protocol (for example, IPMVP) and not specifying data sources, creating disagreements during verification.
Not confirming signer authority or failing to capture title and date, which can invalidate execution for lenders or courts.

eSignature Vendor Pricing and Feature Snapshot

Overview comparing starting price, trial availability, bulk send, audit trail, HIPAA support, and envelope limits across common providers; signNow appears first per vendor column ordering.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Use Cases: How Organizations Apply Energy Services Contracts

Real examples illustrate common structures and outcomes for performance and savings agreements.

Public Building Retrofit

A municipal government contracted an ESCO for LED upgrades and HVAC controls to reduce utility spend.

The contract used guaranteed savings with annual reconciliation.
The project financed installations against measured savings; clear M&V procedures satisfied lender and allowed timely performance verification and payment.

Commercial Office Building

A property management firm engaged a contractor for chiller replacement and controls modernization.

Payment combined fixed fee and shared savings.
Detailed baseline rules, remote metering, and an agreed dispute resolution path reduced negotiation time with tenants and enabled energy performance-linked payments.

Frequently Asked Questions About Execution and E-Signing

Answers to common questions about signing, notarization, amendments, and storing Energy Services Contracts in electronic systems.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures that meet ESIGN (15 U.S.C. ch. 96) and UETA standards are generally enforceable in the United States provided the four ESIGN criteria are met: intent, consent, attribution, and record retention.
Is notarization required for validity?
Not typically for commercial energy contracts; notarization is usually optional unless state law, financing, or deed-related obligations require it. For actions affecting real property, obtain notary or witness support as needed.
When should witnesses or a notary be used?
Use witnesses or a notary when a lender, local recording requirement, or specific state statute mandates it—especially for instruments that convey property interests or create liens.
How are amendments handled?
Amendments should be written, signed by authorized representatives, reference the original agreement by date, and include effective date and any changed M&V or payment terms.
What if a signer’s name changes?
Document signature authority and corporate resolutions where names differ; corrected signature blocks and an executed amendment are typically sufficient for lender acceptance.
How long should executed contracts be stored?
Retain executed contracts and M&V records for the contract term plus recommended retention (generally at least three years; see IRS and industry rules) and longer where warranties or regulatory requirements apply.

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