D. Insurance and compensation issues. A project proponent should receive adequate compensation and insurance coverage from the various parties with whom it enters into contracts, including the turbine supplier and the builder`s balance, and require these parties to receive similar protection from their subcontractors and equipment suppliers in favour of the project proponent. Relevant compensation may include general compensation for personal, fatal and material damages resulting from the other`s activities, compensation of the contractor in relation to the subcontractor`s property rights; compensation for taxes (except those payable by the developer) compensation for violation of applicable laws; and compensation for claims against intellectual property infringement. Appropriate insurance policies may include general commercial liability, workers` compensation and employer liability, the automobile, errors and omissions (for construction and engineering services) and the entire risk of the contractor (project ownership insurance). These policies should, where possible, designate the developer and its affiliate as additional policyholders and include appropriate waiver statements. The corresponding political limits will vary depending on the nature of the work being carried out and the scope of the project. A project proponent should consult with an insurance or risk management specialist to ensure that appropriate types and levels of coverage are met. Engineering, procurement and construction tasks are often grouped into a single agreement (an “EPC agreement”). Separate agreements may provide for or anticipate other services, such as warranty services or operating and maintenance services for the completed facility. The turbine supply contract required a credit for the purchase price of the wind turbines minus the reservation payments for the turbines. The TSA generally covers the construction, construction and delivery of these components on site, as well as the assembly, commissioning and warranty of each WTG. The form of the TSA may be a custom form or a modified standard form, but it is adapted to the specific requirements of wind turbine supply contracts.
When defining the duration of your ADM, the first OEM often insists on long-term service agreements. But is this the right solution for your wind farm project? Is a full service agreement required after the TSA guarantees expire? How do you want to operate your wind farm throughout its lifespan? Your ADM should not only support your specific project business, but also be part of the long-term portfolio strategy and ensure the right options within the ADM is of the utmost importance. . For example, the inclusion of an exit fee option or explicit options for reduced benefit areas, which maintain contractual flexibility for future optimizations. E. Limitation of liability. Like other contractors and suppliers, turbine suppliers and facility builders are still trying to limit their liability to a project proponent. A frequent claim is the waiver of consequential damage, indirect, random and special damage. Such clauses and the exclusions they contain must be carefully negotiated, as the definitions of such damages may be ambiguous. Both the turbine supplier and the contractor will generally endeavour to limit their respective liability in the event of damage to service delays to damage liquidated of a specified value, a ceiling corresponding to an agreed percentage of the value of the agreement in question. The parties can determine the maximum overall liability that a contractor may have; However, the parties may, by appointment, assume additional responsibility for the contractor.
For example, the contractor might agree that the contractual limitation of its overall liability would not apply in cases where the proponent (1) has not fulfilled its contractual obligation under an electricity purchase contract, or (2) due to delays on the part of the