Solar PV Facility Project Financing & Contracting
O&M contract
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Operation and maintenance contract
The O&M Contract is designed for use
when contracting for services relating to
the operation and maintenance of a solar
PV facility. These will typically be a long-
term arrangement subject to renewal.
The O&M Contract includes General
Conditions relating to aspects of
performance of works, damages and
disputes. Additionally, the developer
is protected from occupational
health & safety liability through
the contracting arrangement.
Schedule 1 to the O&M Contract sets out
in detail the Services you require. This
Schedule must provide a comprehensive
outline of the responsibilities of the O&M
Contractor, and should be sensitive to the
obligations of the Owner to both the Off-
taker (under the PPA) and the Network
Services Provider (under the Connection
Agreement). Schedule 2 sets out the
payment terms of the Total Yearly Fee.
The precedent O&M Contract provides
substantial protection to the developer,
with an option to include a bank
guarantee, provision of Performance
Guarantees and Performance Liquidated
Damages in Schedule 3 (subject to
agreement between the parties), and
comprehensive insurance requirements.
Simplified sequence of events
Owner identifies need to engage O&M Contractor to operate and
maintain the Solar PV Facility.
Commence quote/pricing process
•
•
Owner contacts O&M Contractors and provides
description of works and services required
O&M Contractors submit quote/pricing information
and other details
O&M Contractor chosen
•
Owner chooses O&M Contractor
•
Owner prepares O&M Contract
Clarification and negotiation where appropriate
Sign contract
Reject quote from
O&M Contractor
Recommence process
O&M Contractor delivers
in accordance with the
General Conditions
and Schedules to the
O&M ContractView entire presentation