Dear Colleagues,
I would like to bring out a case for your inputs / suggestions:
DESCRIPTION OF THE CASE:
It’s a New power plant being constructed consisting of 2 Turbines. Each Turbine has a PAC & LD attached to it.
The first Turbine is already Constructed & Commissioning is in an advanced stage. The final stage of commissioning is a 7-days Reliability run wherein the Turbine has to be run continuously without any breaks, following which the PAC shall be achieved.
The LD for first GT shall be applicable from 15-Jan-05. The clause states that a “weekly ceiling rate of US$ 100,000 or pro rata thereof shall be applicable”
The Contractor started the Reliability run on 5-Jan-05 & would have achieved the PAC on 12-Jan-05 (3 days earlier). However the Machine tripped on 4 successive days, which now implies that if the Reliability run is started on 10-Jan-05 the new date of PAC would be 17-Jan-05 (2 days late, hoping that the machine doesn’t trip again).
CONCLUSION:
It appears that LD clause will be applicable now. I need inputs from experts as to “all possible valid arguments that can be raised to avoid payment of LD !”
Thankyou in advance,
Susan
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