If the operator and contractor of the EPC are identical or related companies, the agreement should prevent the agreement from relying on delay or under-performance on the part of the other, in order to obtain relief from the owner as part of their contract. The agreement should also prevent a contractor from sticking to the actions of the other to defend the owner`s right to a delay or non-compliance. The transaction and hand agreements should, if necessary, define the operator`s service obligations. Performance benchmarks generally include items such as availability, failures, production levels and other technical, quality, safety and environmental performance criteria. The agreement should also define the minimum levels of performance that trigger the owner`s rights to obtain compensation or termination under the agreement if they are not met. In some cases, the O-M agreement may also provide for an upward share mechanism that provides for additional compensation in the event that the project`s performance exceeds the contractual level. Operating and maintenance agreements should relate to all levels of performance achieved by the EPC contractor at the time of delivery. These defined values, adjusted for deterioration, should establish the basis for the operator`s service obligations. For example, for an energy project, it is imperative that technical and legal consultants ensure that the performance review and performance guarantee as well as the liquidated claims plans of the agreement are recovered with the corresponding schedules of the work contract. Operating and maintenance agreements enter into contractual agreements between project companies and professional operators for the maintenance and operation of project facilities. Contractual clauses such as these do not mention discharge and horizontal defence rules. These provisions can be incorporated into O-M agreements that should also include them in the EUC treaties or by any other means in a separate coordination or wrap agreement specifying the parties` coordination and interface obligations with respect to the project. Operating and maintenance contracts (O-M agreements) are generally short-term contracts lasting two to five years that enter into a contractual agreement between the project company and a professional operator to provide operational and maintenance services for the project.
They define the range of obligations and responsibilities of the operator, as well as remuneration, which is usually a fixed fee. Sometimes the D-M agreements provide for results-related fees and, conversely, damages are liquidated for non-compliance with the required performance criteria. This ownership, operating and maintenance agreement (“agreement”) by and between the City/County Association of Governments of San Mateo County, The following, known as “CAG,” san Mateo County, the city of Redwood City, is intended to redefine and define the roles, responsibilities, conditions and conditions of ownership, operation and maintenance of equipment and components integrated and integrated into the San Mateo County Smart Corridor Project, as is below.” Finally, parties to long-term operating and maintenance agreements should be aware of the possibility of changes that could affect the long-term nature of the transaction. B, such as a change in political regime or a regulatory change. In anticipation of such cases, the operator`s right to exemption and additional compensation must be clearly stated in the agreement.