Maintenance Agreement Period
(1) Are there any areas of the agreement that need to be reviewed or developed by a technical consultant, e.B.: The operator should be required to operate and maintain the facility at all times in accordance with the following provisions: 1. All applicable laws and regulations. 2. All applicable consents and licenses. 3. “Project contracts”, including concession agreements and/or the main acceptance contract. 4. Good industry practice or standard of a reasonable and prudent operator. 5.
All security requirements. 6. Recommendations from all manufacturers. 7. The requirements of insurance policies. (8) (a) minimize natural deterioration and normal wear and tear; (b) maximize the operating efficiency of the facility; and (c) minimize forced failures (i.e., failures). NB. Where any of the above requirements are contradictory, the operator should be required to follow the authority`s instructions to remedy those inconsistencies at no additional cost. (1) A contract often contains guarantees for each of the parties – these are statements that they are actually constituted, have the rights and powers to conclude the contracts, have not concluded significant legal disputes, etc. (2) If the authority guarantees the information provided to the operator, this is indicated here.
(3) Guarantees are given at a given time – and may be repeated at certain times – but it should be clarified whether the guarantees are given at the time of signing the contract – whether they are repeated on the date of entry into force of the contract – and whether they must be repeated at another time. If there is no indication as to the date on which the guarantees will be given, they may be deemed to have been given at the time of the conclusion of the contract by the parties. (4) The parties should consider what should happen if circumstances change that would render the warranty defective – should the party that gave the warranty be obliged to inform the other party of the change? (5) Guarantees should not be confused with commitments – the obligations of a party are to do or refrain from doing anything. For example, the authority may undertake not to enter into similar agreements with a third party in the field of service – these obligations apply during the term of the contract and, unlike guarantees, are not granted at any time. There is no fixed rule on how to draft maintenance contracts. The most important thing to keep in mind is that the contract is enforceable by legal means. Well-thought-out terms and conditions should be a no-brainer. `(1) Should the operator receive a fixed fee or a refundable remuneration, or should it be paid by a combination of both approaches? (2) Is part of the operator`s fees subject to escalation? (3) What guarantees does the agreement contain in the event that the operator is paid in whole or in part for a refund in order to prevent this procedure from being abused by the operator? Examples of how a public authority can protect itself can be found in Annex 5.4. Is the fee an appropriate incentive for the operator to behave? See Annex 6 for examples of how the operator could receive incentives.
Also create detailed incentive mechanisms for deployment in poor areas (even if these are alternative technologies, local billing agreements, subsidies for connections, etc. (5) When is payment? What are the interests due by the authority in the event of late payment? Are there any legal restrictions on interest penalties? 6. Is the authority entitled to exercise rights of set-off, for example in the case of defective services? (7) Is the authority responsible for the taxes payable by the operator? If the AMF is responsible for the payment of these taxes, which may be appropriate for a foreign project, does the agreement explicitly exclude the penalties to be paid by the Operator and does it provide for the Operator to reimburse the Authority for tax credits collected subsequently? Maintenance plays a crucial role in establishing smooth business operations in any facility. Companies that can`t (or don`t want to) take care of their physical assets will try outsourcing maintenance. And you can`t do that without signing some kind of maintenance contract. 2. Is the operator a significant entity? If not, will it be supported by adequate performance guarantees or will there be a minimum level of paid-up capital in the company? Is the operator a local or foreign company? If it is a foreign company, is there a way to ensure that it can be held accountable for its actions? (3) Is the grantor a significant entity? If not, should it be supported by a state or other guarantee? (4) Can the grantor delegate responsibility as proposed in the agreement? (5) Are there other legal obstacles to the conclusion of the contract? Different maintenance companies offer different pricing methods. They are usually negotiated between the provider and the service provider to see what works for both. The most common are: (1) Does the agreement provide that the Authority may terminate the agreement in the event of events listed in Annex 4? (2) Does the operator have the right to terminate the contract for the following reasons: (3) In the event of failure of the authority, does the contract provide for satisfactory rectification periods before the operator is entitled to exercise its termination rights? (4) In the event of termination of the contract, under what circumstances is the operator entitled to loss of profits? Are there limits to the amount of lost profits that are recoverable? If the authority wishes to retain a right of termination for convenience, the operator will likely seek compensation for the loss of future profits to be made upon termination. .