Energy Disputes – spotlight on Operation – asset operation and maintenance

In this spotlight on our Energy Disputes Guide we focus on the increased risk of disputes arising from the operation of assets and maintenance of plant during the operation phase of an energy project . The key objectives during this phase are to protect generation and optimise the asset as any downtime, defects or disputes will inevitably have an impact on project performance. To avoid and mitigate disputes:

• Ensure clarity of the O&M operator's obligations, including the scope of any performance guarantees.
• Manage the interface between the construction and O&M contracts and clearly define responsibilities.
• Consider the likely need for, and availability of, spare parts, and make necessary provision in the O&M agreement to mitigate the risk of disruption to generation should a replacement part be required.