In an unprecedented departure from the norm, the performance-based design-build team for a fast-tracked office building nearing completion in Seattle is at risk for 0.5% of its original $66-million contract award. The team will not receive the $330,000 held back by the owner unless the three-story building meets energy-use targets promised by the team long before a shovel hit the ground.

The fee holdback, combined with a 12-month, post-occupancy measurement and verification period to fine-tune building operations, is the brainchild of the U.S. General Services Administration Northwest/Arctic Region. Many eyes are on the proof-of-performance procurement twist, which GSA is pioneering at the from-scratch Federal Center South project and at two existing buildings undergoing mechanical-system upgrades.