Turbine Supply Agreement Definition

For example, issues relating to guarantees of benefits and payment. As a general rule, a promoter will ensure that the various plant builders obtain performance and payment guarantees for the benefit of the project promoter in the form of payment and performance guarantees or a standby credit in order to guarantee the obligations of the various contractors (whether engineers, designers or purchasing companies), to complete their work on time and in accordance with the requirements of their various agreements. and protection against pledge rights and claims of unpaid subcontractors. Some of the problems with these guarantees are described below. I. Construction Agreements. For the development of a wind project, these are the different agreements that a developer must conclude: for example, the terms of payment. In order to ensure the timely acquisition of wind turbines and other materials and the progress of the installation work balance sheet, the proponent must pay in a timely manner to the turbine supplier or the balance sheet contractor of the installation. In the case of the turbine supplier, the project proponent usually pays an acomptator at a level agreed with the turbine supplier. The count is used to pay for long-term items and to provide the turbine supplier with the resources to start the manufacturing and delivery process. The balance of the contract price is generally paid to the supplier at (1) the shipment of the wind turbines and associated components from the plant, (2) the supply of the wind turbines and components associated with the project site, (3) the commissioning of the wind turbines, (4) the installation and testing of the resulting control and monitoring system, and (5) the final installation of the project by the parties. The actual percentage of the contract price due at each stage and the steps that trigger payment are a matter of negotiation for each project.

The project sponsor may wish to withhold a portion of each payment under the turbine supply contract to ensure that funds are available to cover warranty issues that may arise after the commissioning and commissioning of the project. In the event that the project sponsor does not pay the turbine supplier, such a failure could allow the turbine supplier to suspend until payment is received the power under the turbine supply contract. If the late payment extends beyond a certain period, the turbine supplier may be allowed to terminate the turbine supply contract. Similar concepts generally apply to the balance of the installation agreement. The project proponent will pay the operator`s balance a deposit equal to an agreed percentage of the contract price, so that the rest of the contractor can mobilize for the execution of the work and order equipment and materials in the long term. The remaining payments are made at the end of certain construction activities (« milestones ») by the balance of the facility builder. At the end of each step, the rest of the contractor must submit to the project sponsor a payment requirement describing the milestone achieved, as well as the rights to pledge the balance of the operator and its subcontractors. Once the project sponsor has confirmed the completion of an important milestone, it will issue the payment in accordance with the terms of the Balance of Plant agreement.

Any undue delay would give the contractor`s balance the right to suspend the service or terminate the contract if payment is not made within the period specified in the Balance of Plant agreement. The turbine developer and supplier enter into a turbine supply contract in which the project promoter undertakes to purchase a number of wind turbine generators from the turbine supplier, as well as the services of the turbine supplier, in order to deliver the turbine equipment to the project site and commission it. . . .