Category: Legal

  • Taking over – it really matters

    One of most the relevant milestones in the life of a wind farm is the taking over. It happens when the contractual requirements for the wind farm are considered fulfilled by the subcontractor, except for smaller items that are noted in a “punch list” and have to be fixed as soon as possible. The requirements…

  • Do not trust me: reliance of data in EPCs

    EPC contracts frequently include a clause on the reliance of data. It has several formulations, but it usually looks something like this: “Employer-Provided Information has been made available for reference only. The Employer makes no warranty as to the accuracy, completeness and reliability of any information, data, statement in the Employer-Provided Information.” The objective is…

  • Over and over and over again: serial defect clause

    The serial defect clause is a warranty frequently requested by customers. It belongs to a classic “tryptic” of warranties allocating risk on the turbine suppliers: General warranty, for defect in design, manufacturing, installation, etc. Power curve warranty Serial defect warranty Generally speaking, a serial defect is a component defective on a significant number of turbines….

  • Transfer of title & transfer of risk

    Transfer of title and transfer of risk are 2 key concepts in wind farms contracts (and, presumably, in many other comparable businesses). They appear in both EPC and Supply Only agreements. This is what they usually means: Transfer of title (ToT): the ownership (of the entire turbine or of one of the component of the…

  • Wind turbines defective parts warranty

    Lately I’ve been spending some time trying to learn something more about quality. Although I see that there is no consensus on the business effectiveness of some of these technique I’ve decided to take a certification (ASQ Six Sigma Green Belt) to have a first-hand experience. One of the first concept I’ve learnt is the…

  • I trust you, but… Professional Indemnity insurance

    The Professional Indemnity insurance, also known as Professional Liability or “PI” here in Europe and “Errors & Omissions” at the other side of the ocean is an insurance who protect individuals (engineers, geologist, topographer…) and companies in case they made gross mistakes, negligence and similar errors causing losses to the counterpart who purchased their service….

  • Time is never enough: Early Works

    Early Works, sometime also called Preliminary Works, Limited Notice To Proceed or something similar, are a common project strategy that is currently more frequent than ever before. Basically, it means that some field works, engineering tasks and/or procurement activities are done before that the EPC contract enter into force. EPC contracts have usually a long…

  • Everything fine? Defects Notification Period

    The Defects Notification Period (DNP) is a certain number of day counted from the date of completion of works that allow the customer to notify defects to the Contractor. In the Wind Energy business is usually 12 months, but in principle can be longer (2 years, 5 years, etc.) or shorter. There are also situations…

  • I can’t believe they invented it: “factual” vs “interpretative” geotechnical report

    One of the things I’d like the most about my job is the fact that I still learn new things, even on topic were I wrongly believe there is not much more new to see. This week during a telco with my accomplice in crime Eduardo I’ve discovered a new trick that I suspect has…

  • The gentle art of EPC wind farms: design responsibility

    In the ideal FIDIC world there is little space for the discussion about design responsibility. Either the Employer (FIDIC Red) or the Contractor (FIDIC yellow & silver) is going to do all (or almost all) the design. Unsurprisingly, real life is more complicate than this. You will have an hard time trying to get reasonable…