92 Energy Project Financing: Resources and Strategies for Success
procedure. It is not. Technical issues are important; they are the founda-
tion upon which the project is based. On the other hand, lawyers would
have you believe it’s all managed through the contract. It is not. A good
contract is simply the basis of a good project.
Make no mistake: Performance contracting is primarily a finan-
cial transaction. The ultimate performance contract decisions cannot
be made in the boiler room; they must be made in the business office.
Engineers and lawyers must also be in that business office when the
decisions are made, but a strong financial voice is crucial.
Performance contracting is a simple idea but a complex process. If
we are to get the maximum benefit out of performance contracting, it
helps if financial officers have some understanding of engineering and
legal issues; however, it is absolutely critical that lawyers and engineers
understand and appreciate the fundamental role that finance plays in
performance contracting.