Common use of Operation of the Project Clause in Contracts

Operation of the Project. In the event that either (a) Contractor has not conducted a successful Phase I Performance Test within 30 days after the Target Phase I Mechanical Completion Date or (b) Contractor has not conducted a successful Performance Test within 30 days after the Target Mechanical Completion Date, then Owner shall have the right to operate and maintain the Phase I Portion of the Project or the entire Project, as applicable, prior to completion of the applicable Performance Test to produce activated carbon and (with respect to the Balance of the Project) electricity, in each case, for the benefit of Owner, subject to the following conditions: (a) All costs of such operation and maintenance that would be borne by Owner after Final Completion (including but not limited to costs of supplies, feed stock, chemicals, fuels and lubricants, operating personnel, overhead, debt service, taxes and transportation) shall be borne by Owner during this period of interim operation and maintenance, and (b) This right of Owner shall not operate to, or be construed to, delay, limit, prevent or in any way impede Contractor’s right to control the Project in order to conduct additional Performance Tests at its discretion.

Appears in 2 contracts

Sources: Engineering, Procurement and Construction Agreement (Ada-Es Inc), Engineering, Procurement and Construction Agreement (Ada-Es Inc)