Control Operation And Maintenance Agreement

The O-M agreement should contain provisions that define, in as much detail as possible, the consequences of a delay in the operator`s service obligations, including liquidated damages or other financial damages. In most cases, operating and maintenance agreements set minimum performance levels below which the operator is considered to be late in accordance with the agreement, as well as the options and corrective measures available to the owner. 1. Contracting parties must verify whether they are transferring or authorizing part of the contract to a third party and, if permitted, whether conditions apply to the assignee`s position and the place of registration of the assignee. Can the agreement be freely ceded by the Authority? 2. If not, is it at least given as collateral to the lenders concerned? 3. Does the transfer of the agreement by the operator depend on the agreement of the Authority? This risk is minimal and can be shared among project participants before the project begins. Conversely, cases of force majeure during the operating phase could lead to an insolvent operator. In this case, the operator may not be able to meet its obligations under the performance standards of the agreement. The agreement should require the party affected by the force majeure event to take all possible measures to overcome the event, including appropriate resource expenditures. However, non-compliance with contractual obligations arising from the event will generally prevent such a party from being late. The Authority`s obligations under the D-M agreements are generally limited to some or all of the following issues: 1.

payment obligations; 2. requirements to obtain certain authorizations and licences; 3. provision of various public services, including fuel, water and other consumables; 4. the obligation to grant the operator access to the facilities; 5. making certain information, such as. B instruction notices and drawings produced, see THE Authority`s data as part of the Authority`s obligations in this checklist; 6. the obligation, if any, for the Authority to make certain investments during the duration of the agreement; 7. tax obligations, particularly in the case of overseas projects. (1) Can the operator outsource? If so, should the parties to which it is authorized to sub-treat be restricted? 2. (3) Should the contract provide clear allocation procedures? Does the agreement provide that subcontracting can be freely granted to the Authority? 5. Does the agreement provide that all subcontractings to be entrusted by the Authority at the time of termination of the contract must be awarded? Liquidated damages are financial compensation for loss, injury or injury to a contracting party granted by a provision of the contract for infringement. Contracts or agreements involving the exchange of money or the promise of benefits, such as.

B the O-M agreements, often contain a provision for liquidated damages. The purpose of a liquidation replacement provision is to determine a predetermined amount to be paid when a contracting party does not provide a benefit as agreed. Liquidated damages can only be assessed in a contract if (1) the damage is either uncertain or difficult to quantify; (2) the amount is reasonable and takes into account the actual or expected harm caused by the offence, the difficulty of proving the actual damage and the difficulty in finding another appropriate remedy; and (3) the damage is structured to act as repair, not repair. If these criteria are not met, a liquidation clause is not paid. (3) Authority data – What are the Authority`s obligations with respect to the status of assets and the performance of assets immediately prior to the operator`s takeover? A key question for an operator who enters into such an agreement, particularly when he bears a performance risk and a certain risk of the state of the asset, is whether he can rely on the data provided by the Authority with regard to the state and performance of the assets and on which he based his offer: the objective of this checklist is to