Common use of Mechanical Completion Clause in Contracts

Mechanical Completion. 10.1.1 Mechanical Completion shall occur with respect to the Facility when the following requirements have been satisfied: (a) Contractor has constructed and installed all materials, equipment, components and systems constituting the Facility (except for completion of minor portions of the Work such as painting, final grading, final insulation, and any other portion of the Work not affecting the reliability, dependability, operability, safety, and mechanical and electrical integrity of the Facility) in all material respects in accordance with the Agreement; (b) Contractor has made available for inspection by Owner all Facility systems necessary to begin Performance Tests in accordance with procedures mutually agreed to at the time by Contractor and Owner; (c) the Work is mechanically and electrically sound, all systems have been flushed, cleaned out and filled as necessary and all required pre-operations checking and testing has been completed satisfactorily and all systems have been started up in accordance with procedures mutually agreed to at the time by Contractor and Owner; and (d) all systems and subsystems have been installed, the equipment and systems included therein can be operated in a manner that does not void any Subcontractor or system warranty and Contractor has made the Facility available for synchronization. 10.1.2 When Contractor believes that the requirements of Mechanical Completion have been met, Contractor shall issue a notice of Mechanical Completion to Owner. Within five (5) Days after receiving such notice of Mechanical Completion, Owner shall advise Contractor, in writing, with reasonable precision, of any known reason(s) to believe that Contractor has not met the criteria for Mechanical Completion. If Owner advises of any such reason(s), Contractor shall then take appropriate corrective action and again notify Owner, in writing, that the Facility has achieved Mechanical Completion. Owner shall have five (5) Days after receipt of such notification to advise Contractor of any remaining known reason(s) under the preceding paragraph why Contractor has not met the criteria for Mechanical Completion. This process shall be repeated as necessary until Owner agrees that no such reasons remain. If Owner fails to notify Contractor of any such known reasons within the allotted time, the Facility shall be deemed to have achieved Mechanical Completion. Otherwise, Mechanical Completion shall not be achieved until Owner and Contractor agree that all of the criteria for Mechanical Completion have been achieved.

Mechanical Completion. 10.1.1 Mechanical 12.1 Completion shall of all Work, after which point the Work will be subject to Article 14.2, will occur in accordance with respect to the Facility when steps in the following requirements have been satisfiedprocedure: (a) When Contractor has constructed has, in its reasonable opinion, completed all Work to the point that all equipment and installed materials are in place per Drawings and Specifications, and all materials, equipment, components and systems constituting the Facility (except for completion of minor portions subsystems of the Work such as painting, final grading, final insulation, Project are ready for Commissioning and any other portion Start-up of the Project, Contractor shall notify Owner of such completion and request Owner’s written notification that all Work not affecting the reliability, dependability, operability, safety, and mechanical and electrical integrity of the Facility) in all material respects in accordance with the Agreement;has been accepted. (b) Owner shall, within thirty (30) Business Days, either accept or reject the Work. If Owner accepts the Work, “Mechanical Completion” shall have been achieved and the date of such Owner notification of acceptance to Contractor has made available shall constitute the “Date of Mechanical Completion” for inspection by purposes of Article 14.2. Owner all Facility systems necessary to begin Performance Tests in accordance with procedures mutually agreed to shall issue a Certificate of Mechanical Completion at the time by Contractor and Owner;that time. (c) If in Owner’s reasonable opinion any Work has not been properly performed in accordance with this Agreement, is incomplete, or has not been accepted, in its written notice pursuant to Article 12.1(b), Owner shall provide a detailed written description of what Work remains to be completed that prevents the commencement of Commissioning and Start-up, and the reasons for its decision, and what steps need to be taken by Contractor to complete or correct such Work. If Contractor agrees, Contractor shall complete such Work and notify Owner of such completion in accordance with Article 12.1(a). If Contractor does not agree, the management of the Parties shall meet and discuss the differences expeditiously. Any failure to resolve the differences within a reasonable time shall require the dispute to be submitted to the dispute resolution process of Article 25. Contractor shall issue its final invoice and such invoice shall be paid for all Work performed regardless of the outcome of the dispute. The outcome of the dispute shall determine if any re-work has to be performed at Contractor expense, if the Work is mechanically complete, if Mechanical Completion has occurred as of the date of the Contractor notice, and electrically sound, all systems have been flushed, cleaned out if any non-conformances shall be handled as a warranty issue under Article 14.2. A written notice itemizing the finishing items including touch-up painting (“Punchlist”) that do not prevent the commencement of Commissioning and filled as necessary and all required preStart-operations checking and testing has been completed satisfactorily and all systems have been started up in accordance with procedures mutually agreed to at the time by Contractor and shall not prevent Owner; and’s acceptance of Mechanical Completion. (d) all systems and subsystems have been installedIf Owner fails to respond to Contractor’s notice of completion at the end of a ten (10) Business Day period from Owner’s receipt of such notice, the equipment and systems included therein can Work shall be operated in a manner deemed accepted at that does not void any Subcontractor or system warranty and Contractor has made time as of the Facility available for synchronization. 10.1.2 When Contractor believes that date of the requirements of Mechanical Completion have been met, Contractor shall issue a notice of Mechanical Completion to Owner. Within five (5) Days after receiving such Contractor’s notice of Mechanical Completion. (e) For the avoidance of doubt, Owner shall advise Contractor, in writing, with reasonable precision, of any known reason(s’s notice under this Article 12.1 (a) to believe that Contractor has not met the criteria for Mechanical Completion. If Owner advises of any such reason(s), Contractor shall then take appropriate corrective action and again notify Owner, in writing, that the Facility has achieved Mechanical Completion. Owner shall have five (5) Days after receipt of such notification to advise Contractor of any remaining known reason(s) under the preceding paragraph why Contractor has not met the criteria for Mechanical Completion. This process shall be repeated as necessary until Owner agrees that no such reasons remain. If Owner fails without prejudice to notify Contractor Contractor’s entitlement to full Compensation during any of any such known reasons within the allotted time, the Facility shall be deemed to have achieved Mechanical Completion. Otherwise, Mechanical Completion shall not be achieved until Owner and Contractor agree that all of the criteria for Mechanical Completion have been achievedthese steps.