Transfer risk and break free from piece-by-piece campus upgrades

Why do so many upgrades stop at installation when accountability should last decades? Our alternative delivery models keep us accountable for results long after the ribbon cutting. Operations and maintenance (O&M) services further extend your team's capabilities, with shared accountability and outcomes tied to asset performance and lifecycle value. The result is a well-functioning campus that helps attract and retain students.

Manage energy costs and the student experience – under a tight budget

Critical campus upgrades are possible without upfront capital or balance sheet impact. Johnson Controls higher education experts partner with you to select the right project delivery model with benefits that go beyond flexible funding. We can help you break free from the piece-by-piece, capital-intensive limitations of traditional design-bid-build (DBB) models by transferring costs, project management and operations to a trusted partner. Here’s a quick look at how we can help you.

1. Analyze the business case

Our first step is to clarify what’s happening on your campus today, and what you want to achieve. Factors we consider include:

• Current energy and operating costs
• Equipment performance and technology needs
• Deferred maintenance status
• Capital constraints and balance sheet requirements
• Staffing and service needs

2. Assess project delivery options

We tailor financial and technical solutions to your institution and consider alternative delivery and service models, such as:

Energy performance contracts – legislatively enabled models that leverage tomorrow’s savings to fund capital improvements today. Updates to building systems create energy and operating efficiencies that yield guaranteed savings, typically 30%. Under this model, Johnson Controls identifies, designs and delivers comprehensive facility upgrades. We contractually guarantee that verified savings will cover project costs and assume financial responsibility if they don’t. This budget‑neutral approach lets higher education institutions modernize aging infrastructure without new appropriations or debt. We’re an energy services company (ESCO) leader, delivering $8.9B in performance contract savings across sectors.

Energy as a service – this option shifts infrastructure investment from a one‑time capital decision to a long‑term performance partnership. We design, build, finance, operate and maintain (DBFOM) your systems over their lifecycle to deliver predictable costs and measurable outcomes tied to availability, efficiency and asset condition. While traditional projects end at installation, under this model, Johnson Controls remains accountable for ongoing performance and assumes operational and lifecycle risk. The result is modern, resilient infrastructure without upfront capital – and with performance guarantees well beyond day one.

Public-private partnerships (P3s) – these enable higher education institutions to leverage private‑sector expertise to deliver new facilities, modernize central plants or execute large‑scale retrofits. Project and performance risks are transferred to a private consortium that may include a developer, design‑builder and long‑term operator – the college or university retains ownership of the assets. Contracts establish financially backed performance standards, key performance indicators (KPIs) and defined asset conditions at project completion. P3-enabling legislation in many states supports long‑term agreements – often 30-40 years. Concession structures may include an upfront payment in exchange for the right to operate, maintain and reinvest in assets over time. Johnson Controls is a leading P3 partner in North America, with deep experience in operating and maintaining education facilities throughout the contract lifecycle.

Arriving at the right structure – together

For example, the University of North Dakota (UND) needed to upgrade their 100-year-old coal steam plant to manage energy costs, advance decarbonization and improve the student experience. However, capital was tight.

Under a 40-year contract that combines P3 and as-a-service elements, UND built a highly efficient $90M natural gas steam plant at no cost to taxpayers. Johnson Controls designed, built, and financed the new steam plant, which we now operate and maintain. OpenBlue connected solutions enable our team to diagnose issues, resolve problems and aid the site management team to ensure energy KPIs are achieved. As a result, the university has reduced annual CO2 emissions by 40,000 metric tons and is positioned to cut operating costs by more than $1M per year.

UND has since extended its collaboration with Johnson Controls to revitalize residence halls. The $219M buildings-as-a-service project again incorporates P3 mechanisms and has UND making predictable monthly payments, rather than expending valuable capital up front.

Upgrade your infrastructure for key benefits

Whatever the project, you can depend on Johnson Controls to deliver on time, on budget and without disruption. Capture benefits that improve your bottom line and enhance learning:

• Preserve capital, make budgeting predictable and keep the savings with the project to end the year-to-year funding struggle
• Address deferred maintenance and augment your team to ensure improvements are sustained
• Reduce energy and operating costs while creating a more attractive, resilient learning environment
• Speed deployment and transfer performance risk to us

Got questions? We've got answers.

Explore our FAQ section to find quick, helpful information.

What types of results have Johnson Controls higher education experts achieved for customers?

• $582M in outstanding savings guarantees through energy performance contracts with colleges and universities
• 50+ EaaS sites under management
• $6B of infrastructure supported across sectors

What is OpenBlue?

OpenBlue is a smart building ecosystem that combines a secured and scalable open data platform with AI-powered applications. It delivers proven energy savings, substantial increases in equipment uptime and measurable gains in space efficiency – all while maximizing asset value with improved occupant experiences. Learn more about OpenBlue.

How can I have Johnson Controls analyze my campus or organization?

Schedule a consultation or request a business case analysis by calling 888-587-1379.

Where can I get more educational insights from Johnson Controls?

Check out our Building Insights page for the latest advice and innovation to keep your building running strong.