CONTRACTS
Contract Negotiation
The contract negotiation is the process of coming to an agreement on a set of legally binding terms of the delivery against milestones and the ongoing expected deliverables The final contract terms are to minimize financial, legal and operation risks.
The contract should cover both the upfront installation and the ongoing performance over a period of time. The contract is only as strong as the supplier credibility and capability to adhere to the contract and / or has the financial strength to uphold and repair/ replace any workmanship that falls short.
Specific areas that often cause problems include:
Deposit Security and Phased payments against agreed Milestones
SLA (Service level Agreements) to include Call Outs
Panel Cleaning
Annual System Checks
Length Of Warranty and what is covered
Back To Back warranties with the equipment suppliers
Holding of Spares
Payment Retentions
Agreements on the PV Production Over Time
Successful Contracts
A successful contract should benefit both parties in the following way:-
Both organisations understand their contract rights and obligations and adhere to them.
Internal stakeholders are satisfied with the deal.
The expected business benefits, both financial and operational, are being realised.
The expected business benefits, both financial and operational, are being realised.
A performance monitoring process exists, and it’s efficient and fit for purpose.
PPA CONTRACTS
The negotiation around PPA (Power Purchase Agreements) can be highly specialised to cover the key components of:-
Terms on Uptake (Take All V’s Take & Pay)
Early Settlement
SSEG Feedback
Penalties
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