Rev 01.07. 2012 D – 3 2. Performance Test Schedule and

Spec.:
Issue:
CM-707
for Proposal
2.
Performance Test Schedule and Certificates
2.1
Definitions
2.1.1
“Unit” shall mean the complete Power Station Assembly/Unit as defined in the
Agreement (which consists of equipment provided by Contractor and by
others).
2.1.2
“Equipment Package” shall mean the Equipment to be provided by the
Contractor under this Contract for a related Unit as defined in the Agreement.
2.1.3
“Shop Test” and “Shop Test Report” shall mean a performance test conducted
at the manufacturer’s facilities (if applicable, as agreed upon and stipulated
herein) and a report of the values observed, measured, recorded and analyzed
in the course of such test, respectively.
2.1.4
“Erection” and/or “Installation” shall mean all the on site erection and
installation activities, as applicable, including fabrication, assembly,
construction, alignment, leveling, installation, interfacing, piping, welding,
preheating, annealing, insulating, lagging, painting, grouting, fastening and
anchoring, clearing, checking, oil filling and treating, adjusting, quality
testing, and all other activities and procedures not specified in detail in this
Annexure or in the Specification (Annexure “B”), which are necessary for the
proper installation of the Equipment Package to allow its Commissioning and
effective operation.
2.1.5
“Commissioning” is the process of taking the Equipment Package from its
agreed state of completed Erection to the point where its ability to meet its
design and commercial requirements can be demonstrated through operation.
The Commissioning consists of two major stages, Cold Commissioning and
Hot Commissioning, as follows:
2.1.5.1 “Cold Commissioning” of an Equipment Package is the process of
verifying completion of all the mandatory erection works and preoperation checks of each Equipment Package with the related Unit in
accordance with a check list to be established during the detail design
stage by mutual agreement (not to be unreasonably withheld) of
Purchaser and Contractor to allow first start up of the Equipment
Package.
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Spec.:
Issue:
CM-707
for Proposal
2.1.5.2 “Hot Commissioning” of an Equipment Package is the process of
taking said Equipment Package with the related Unit from the agreed
state of completion of Cold Commissioning, through the stage of first
start up of the Equipment package to the point of demonstrating safe
and reliable operation of the Equipment Package with the related Unit,
the Equipment Package having successfully performed twelve (12)
hours of continuous operation (excluding normal interruptions not
attributable to Contractor) at 95% or more of its Rated Load and being
ready to start the Trial Run.
2.1.6
“Trial Run” is a process of preliminary tuning and demonstration of effective
operation, including without limitation, flexibility of operation and inherent
reliability of the Equipment Package, Characterized as follows:
2.1.6.1 “Readiness to Start the Trial Run” shall mean completion of Erection,
Cold and Hot Commissioning.
2.1.6.2 “Preliminary Tuning” is the procedure of setting the adjustable
measures (instruments, software parameters) of the Unit including the
Equipment Package to achieve simultaneously two major objectives:
(a)
Safe, reliable and smooth change-over through all the operating
conditions and loading sequences meeting the functional and
operational requirements as detailed in the Specification,
Annexure “B”.
(b)
Performances in the range of the Minimum Performances
Acceptable for Provisional Acceptance, as detailed in Article 1
of this Annexure “D”.
2.1.6.3 “Successful Completion of the Trial Run” of an Equipment Package
shall mean that said Equipment Package has been available for safe
and reliable operation in all modes of operation at more than 95% of
said Equipment Package Rated Load as demonstrated by means of onbase measurement instruments, without any limitation, for a
continuous period of four weeks (excluding interruptions not
attributable to said Equipment and excluding up to 2 interruptions of
no more than 6 hours each attributable to the Equipment).
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Spec.:
Issue:
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for Proposal
In case the Equipment Package can not meet the operational and
loading requirements as detailed above for reasons attributable to the
Contractor, the count down of four weeks shall restart.
2.1.7 “Performance Tests” are those tests conducted to verify that the Equipment
Package allows the Unit to actually achieve the performance levels
Guaranteed by Contractor with respect to the performance parameters
tabulated in Article 1 of this Annexure. With respect to such Performance
Tests the following definitions shall apply:
2.1.7.1 “Provisional Acceptance Tests” and “Provisional Acceptance Test
Report” shall mean Performance Tests conducted after Successful
Completion of the Trial Run and a report of the values observed,
measured, recorded and analyzed in the course of such tests,
respectively.
2.1.7.2 “Provisional Acceptance” of the Equipment Package shall mean,
without derogation from the general definition in the General
Conditions, Successful Completion of the related Trial Run and that
said Equipment Package has gone through a Provisional Acceptance
Test and was found to meet all the Minimum Performance Levels as
documented in the Provisional Acceptance Test Report.
2.1.7.3 “Provisional Acceptance Certificate” shall have the meaning as set
forth in the General Conditions, namely, a certificate issued to the
Contractor stating the date upon which Provisional Acceptance of the
Equipment Package has been achieved.
2.1.7.4 “Final Acceptance Test” and “Final Acceptance Test Report” shall
mean a Performance Test of an Equipment Package to be conducted at
Purchaser’s discretion at any time within six (6) months after
Provisional Acceptance Test of said Equipment Package and prior to
its Warranty cut off date, and a report of values observed, measured,
recorded and analyzed in the course of such tests including a final
comparison of the actual performance levels with the related
Guaranteed Performance Levels, respectively.
2.1.8
Reserved.
2.1.9
Reserved.
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Spec.:
Issue:
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for Proposal
2.1.10 “Final Acceptance” of the Equipment Package shall (only) mean that the
Guaranteed Performance Levels in accordance with the Final Acceptance Test
Report are either met or compensated for in accordance with the Contract.
2.1.11 The Performances Guaranteed by the Contractor are tabulated in Article 1 of
this Annexure using the following definitions:
2.1.11.1 “Guaranteed Performance Parameters” shall mean the technical
definition of the guaranteed feature/quality.
2.1.11.2 “Guaranteed Performance Levels” shall mean the level guaranteed in
the applicable unit of measure that has to be achieved and
demonstrated through the Final Acceptance Test to allow issuing the
Contractor a Final Acceptance Certificate (FAC), as detailed below.
2.1.11.3 “Minimum Performance Level” shall mean a performance level
within a tolerable range of deviation from the related Guaranteed
Performance Level, which has to be achieved and demonstrated
through performance testing as a precondition for issuing the
Contractor a Provisional Acceptance Certificate (PAC), as detailed
below.
2.1.12 The types of parameters guaranteed by the Contractor are tabulated in Article
1 of this Annexure using the following definitions:
2.1.12.1 “L.D. Parameter” shall mean a performance parameter where the
Contractor is liable to pay liquidated damages for under performance
at the rates specified in Article 5 below (hereinafter “Liquidated
Damages for Under Performance” or “LDUP”).
2.1.12.2 “A.D. Parameter” shall mean a performance “Accept-Decline”
parameter where the Equipment Package is either Accepted for
normal operation or declared to be in material non-conformance with
the Contract requirements and therefore Declined for normal
operation.
2.1.13 “Unit Contract Price” shall mean the contract price allocated for the
Equipment Package, as defined and stipulated in the Agreement, without the
Cost of Financing.
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Spec.:
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2.1.14 Rated Load of an Equipment Package shall mean the guaranteed air flow and
discharge pressure as detailed in items 1.1 and 1.2 above.
2.2
Scheduling requirements
responsibilities
2.2.1
The major on site activities/milestones in putting an Equipment Package into
operation with the related Unit are as follows:
1.
2.
3.
4.
5.
6.
7.
8.
9.
and
related
Purchaser’s
and
Contractor’s
Erection.
Cold Commissioning.
Hot Commissioning
Notification to Contractor of the Expected Provisional Acceptance
Date (as defined in the General Conditions – Annexure “A”).
Readiness to start the Trial Run.
Trial Run including Preliminary Tuning.
Provisional Acceptance Tests.
Provisional Acceptance and issuance of PAC (where adequate).
Final Acceptance Test.
2.2.2
During the design phase of the Equipment Package and as scheduled in the
Documentation Submission Schedule, the Contractor shall submit the
Instruction Manual in its preliminary format which allows installation,
operation and maintenance of the Equipment Package in an adequate, safe and
reliable manner, and shall provide detailed test procedures for all the
Guaranteed Performance Parameters for Purchaser’s review and approval.
2.2.3
During the Commissioning phase, prior to starting the Trial Run, the
Contractor shall nominate an authorized representative to witness the
Provisional Acceptance Tests and confirm Test measurements.
2.2.4
The Trial Run shall be scheduled to start at Purchaser’s discretion after
successful completion of Hot Commissioning.
2.2.5
Upon Readiness to start of the Trial Run the Purchaser shall notify the
Contractor in writing of the Expected Provisional Acceptance Date (as defined
in the General Conditions – Annexure “A”), eventually allowing 90 days for
the successful completion of the Trial Run and the Provisional Acceptance
Tests.
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Spec.:
Issue:
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for Proposal
2.2.6
During the Trial Run the Purchaser and the Contractor shall determine by
mutual agreement the timing, duration, conditions, preparations, extent of
testing and other factors of the Provisional Acceptance Tests.
2.2.7
Prior to each Provisional and/or Final Acceptance Test, the Purchaser shall
provide detailed lists of the measuring instruments and their calibration
records.
2.2.8 After Successful Completion of the Trial Run, the Purchaser shall conduct
Provisional Acceptance Tests to verify that the Equipment Package actually
achieves the Minimum Performance Levels for the related Performance
Parameters listed in Article 1 above. The Contractor shall be given an advance
notice and its representative(s) shall be given full access to witness (at
Contractor’s expense) these tests.
2.2.9
After completion of measurements and recording test results the Purchaser
shall issue a Provisional Acceptance Test Report including analysis of
performances.
2.2.10 The Purchaser undertakes to make all the necessary coordination, provide all
the necessary labor force and all the necessary consumables, and conduct the
Provisional Acceptance Tests within a period of two (2) weeks, as soon as
practically possible (taking into consideration the balance of plant
functionality and the grid requirements) following the Successful Completion
of the Trial Run, and to issue the Provisional Acceptance Test Report within
six (6) weeks thereafter.
2.2.11 In all cases the Purchaser shall be entitled to perform a Final Acceptance Test
for an Equipment Package within six (6) months after related Provisional
Acceptance, and to issue the Final Test Report within six (6) weeks thereafter,
however prior to said Equipment Package Warranty cut off date, in order to
finally and accurately determine the extent of compliance of the Equipment
Package actual performance levels with the Guaranteed Performance Levels.
The Contractor shall be given an advance notice and its representative(s) shall
be given full access (at Contractor’s expense) to witness these tests.
2.3
Scope of testing and analysis of results
2.3.1
Each Equipment Package supplied under this Contract should meet - as part of
the basic scope of Work, and without derogating from any other contractual
requirement - each of the Guaranteed Performance Levels specified in Article1 above.
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Spec.:
Issue:
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for Proposal
2.3.2
The Purchaser may test each Equipment Package to verify achievement of the
Guaranteed Performance Levels.
2.3.3
The Guaranteed Performance Levels stipulated in Article 1 above should be
interpreted as already accounting for sufficient degradation allowance with
respect to an Equipment Package until its related Warranty cut off date.
2.3.4
The performances of the Equipment Package shall be tested in accordance
with the latest editions (valid on the date of Contract Execution) of the
following:
a.
b.
c.
d.
ASME: American Society of Mechanical Engineers: PTC 10
HEI:
Heat Exchange Institute, Inc.
HI:
Hydraulic Institute.
ISO11204 Acoustic – Noise Emitted by Machinery and Equipment
with all the conforming procedures attached hereto [to be provided by
Contractor as part of its proposal] and the detailed procedures to be provided
for Purchaser’s review in accordance with sub article 2.2.2 above.
2.3.5
The Performance Tests shall be performed and analyzed as follows:
2.3.5.1 Prior to Performance Testing the Equipment Package shall be tuned by
Purchaser and Contractor.
2.3.5.2 The Performance Test shall be conducted under conditions as close as
possible to the conditions assumed for the Guaranteed Performances.
2.3.5.3 All Guaranteed Performances
simultaneously for each load.
shall
be
tested
and
achieved
2.3.5.4 The Performance Tests shall be evaluated in accordance with the
correction curves / formulas for deviations of the actual test operation
conditions from the design conditions provided by the Contractor and
attached hereto [to be submitted during the technical evaluation stage
as part of the proposal].
2.3.5.5 Test results shall be reported as calculated from test observations,
using calibrated instruments by an internationally accredited traceable
laboratory, applying Zero tolerance to the measurements results.
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Spec.:
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for Proposal
2.3.5.6 Both the Purchaser and the Contractor shall certify the test
observations in writing.
2.4
Acceptance Certificates
2.4.1
With respect to Provisional Acceptance Certificate:
The Purchaser shall issue a Provisional Acceptance Certificate for an
Equipment Package provided that:
2.4.1.1 The Unit with the Equipment Package have Successfully Completed
the Trial Run as defined in article 2.1.6 above; and 2.4.1.2 The Unit with the Equipment Package achieved all the Minimum
Performance Levels as indicated by the Provisional Acceptance Test
Report as defined in article 2.1.7 above.
2.4.2
With respect to Final acceptance Certificate:
The Purchaser shall issue a Final Acceptance Certificate for an Equipment
Package provided that:
2.4.2.1 The related Final Acceptance Test was successfully completed and said
Equipment Package achieved all the Guaranteed Performance levels as
indicated by the Final Acceptance Test report.
2.4.2.2 The Equipment Package achieved in the Final Acceptance Test all the
Minimum Performance levels and to the extent applicable the
Contractor paid the Purchaser Liquidated Damages for Under
Performance.
3.
Performance Testing,
Responsibilities
3.1
The Contractor shall conduct at Contractor’s expense, if applicable, Shop
Performance Tests (in case such tests are called for by the Contract) as an
integral part of its Inspection and Test Plan and all the Contractual
requirements pertaining to Quality Control and Quality Assurance shall apply
Rev 01.07.2012
Rectifying
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Procedures
and
Contractor'’s
Spec.:
Issue:
CM-707
for Proposal
thereto. The Purchaser shall witness these tests and shall be entitled to obtain
independent test data by installing in parallel to Contractor’s test instruments
its own instruments and/or shall be allowed at its own discretion to introduce
random upsets to verify proper response of the Equipment Package. Successful
results indicated by the Shop Test Report and approved by Purchaser shall
form in such case a pre condition for delivery to Purchaser.
3.2
The Purchaser shall conduct at Purchaser’s expense the Provisional
Acceptance Tests and the Final Acceptance Tests.
3.3
Upon completion of the Provisional Acceptance Tests, then:
3.3.1
In case one or more of the Minimum Performance Levels of the Equipment
Package has not been achieved due to any fault attributable to the Contractor,
then:
3.3.1.1 The Purchaser shall not issue a Provisional Acceptance Certificate;
3.3.1.2 the Purchaser shall be entitled to put the Equipment Package into
operation as part of the operation of the Unit, provided however that
the Purchaser will take all the necessary measures to ensure that the
Equipment Package will not be damaged by such an operation;
3.3.1.3 For any period the Equipment Package is out of operation (for reasons
attributable to the Contractor), the Contractor shall be liable for delays
in Provisional Acceptance (as set forth in the General Conditions,
Annexure “A”) and shall be obliged within a period of ninety (90) days
to propose corrective measures and implement them as further detailed
in sub article 3.4 below;
3.3.1.4 Immediately after completion of the corrective measures the Purchaser
and the Contractor shall retest the Equipment Package;
or 3.3.2
In case all the Minimum Performance Levels of the Equipment Package has
been achieved, then:
3.3.2.1 The Purchaser shall promptly issue a Provisional Acceptance
Certificate as detailed above;
3.3.2.2 The Purchaser shall be entitled to put the Equipment Package into
operation as part of the operation of the Unit;
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3.3.2.3 The counting of WP1 months (as set forth in the Agreement) towards
the expiration of the Warranty period for the related Equipment
Package shall begin;
3.3.2.4 The Contractor shall be entitled, if necessary and subject to the
provisions of sub article 3.4 below, to propose and implement within
the first three (3) months after Provisional acceptance, corrective
measures, to improve the performance levels of the Equipment
Package.
In case Contractor elects to improve the performance levels, the
Purchaser shall in addition to the periods when the Unit is undergoing
scheduled and/or unscheduled outages allow the Contractor up to four
(4) days as non-penalised downtime to perform corrective work.
However the Purchaser and Contractor shall reasonably agree when
these four days shall occur.
If the Contractor exceeds these four days the Contractor shall be liable
for payment of liquidated damages for deemed delays as further
detailed in sub article 3.6 (c) below. The Purchaser shall not
unreasonably interfere with the Contractor’s preparation for and
repetition of any Performance Test.
The Warranty period for the related Equipment Package shall be
extended by a period equal to the period during which said Equipment
Package cannot be used by reason of Contractor performing corrective
measures during unplanned shutdowns attributable to the Contractor.
3.4
In case the Contractor either have to (under 3.3.1.3 above) or wishes (under
3.3.2.4 above) to propose corrective measures, the Contractor shall analyze the
deficiency, and propose such measures (hereinafter the “Repair Plan”)
necessary to bring the performance of the Unit with the Equipment Package up
to the Guaranteed Performance Levels (hereinafter the “Repairs”). The Repair
Plan shall indicate the period within which the Repairs are to be completed
(hereinafter the “Repair Period”) including all direct and indirect activities,
such as diagnosis, technical details, restoration, final checks, testing, etc.
The Repair Plan shall meet the following requirements:
(a)
(b)
(c)
(d)
Replacement or repair of defective components.
Minimum reduction of power output.
Shortest possible down-time.
Re-Testing by Purchaser and witnessing by Contractor.
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Spec.:
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for Proposal
3.5
The Purchaser shall review the proposed Repair Plan and shall reasonably
endeavor to let the Contractor implement it, as soon as possible, subject to
mutual agreement on timing, warranty extension for down time in excess of
four (4) days, duration, scope, test procedure and expected performance levels.
3.6
In case a Repair Plan is agreed upon, the Contractor shall:
3.7
(a)
Utilize the Repair Period conscientiously and make good faith attempts
to adhere to its obligations according to the Contract.
(b)
Bear the entire costs of the Repairs and of such further tests (excluding
the costs of the Final Acceptance Test) as may be required to
demonstrate that the Unit with the Equipment Package has achieved
the Guaranteed Performance Levels.
(c)
Pay liquidated damages for deemed delays (hereinafter “LDDD”) for
the periods stipulated as applicable in article 3.3.2.4 above, where the
amount payable as LDDD shall be at the same rates specified in
Annexure “A” for delays in Provisional Acceptance and shall form an
integral part thereof.
(d)
Extend the Warranty Period to compensate for the periods during
which the Equipment Package is in the process of being repaired and is
non available for power generation.
After the Repair Period as detailed above and prior to the related Warranty cut
off date the Purchaser shall perform the Final Acceptance Test and shall issue
the Performance Test Report and the following shall apply:
3.7.1 In case the results of the Final Acceptance Test indicate that the performance
of the Equipment Package does not meet a Minimum Performance Level with
respect to any L.D. Parameter, or a Guaranteed Performance Level with
respect to any A.R. Parameter, the Purchaser:
3.7.1.1 With respect to L.D. Parameters:
a.
Rev 01.07.2012
firstly, shall allow the Contractor repair the Equipment Package
upon terms and conditions to be agreed upon; then –
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Spec.:
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for Proposal
b.
secondly, in the event the provisions of subarticle (a) above are
not met, may avail itself of the applicable Liquidated Damages
for Under Performance on the basis of the test results at the
rates detailed in Article 5 below; then -
c.
thirdly, in the event the amount payable as Liquidated Damages
exceeds the caps set forth in the Contract, may declare that the
Equipment is in material non-conformance with the
specification requirements and avail itself of the remedies
available to the Purchaser due to a breach of a fundamental
term of the Contract by the Contractor.
3.7.1.2 With respect to A.D. Parameters:
a.
firstly, shall allow the Contractor repair the Equipment Package
upon terms and conditions to be agreed upon; then -
b.
secondly, in the event the provisions of sub article (a) above are
not met, may declare that the Equipment Package is in material
non-conformance with the specification requirements and avail
itself of the remedies available to the Purchaser due to a breach
of a fundamental term of the Contract by the Contractor.
3.7.2 In case the results of the Final Acceptance Test indicate that the performance
levels of the Unit with the Equipment Package with respect to one or more
L.D. Parameters do not meet the related Guaranteed Performance Levels but
still meet the related Minimum Performance Levels, while the Guaranteed
Performance Levels with respect to the other remaining A.D. Parameters and
L.D. Parameters are fully met, the Purchaser:
3.8
a.
firstly, shall allow the Contractor repair the Equipment Package upon
terms and conditions to be agreed upon; then -
b.
secondly, in the event the provisions of sub article (a) above are not
met, may avail itself of the applicable Liquidated Damages for Under
Performance on the basis of the test results at the rates detailed in
Article 5 below.
Failure to achieve any of the Guaranteed Performance Levels with respect to
the A.R. Parameters or any of the Minimum Performance Levels with respect
to the L.D. parameters by the end of the Final Acceptance Test shall constitute
a breach of a fundamental term of the Contract by the Contractor.
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Spec.:
Issue:
3.9
CM-707
for Proposal
To avoid doubts in calculating Liquidated Damages for Delays in Provisional
Acceptance and Deemed Delays of each Equipment Package, the aggregate of
the following delay periods related to said Equipment Package shall be
considered:
a.
Any period after the Expected Provisional Acceptance Date, required,
for reasons attributable to the Contractor, for the Successful
Completion of the Trial Run and for conducting the Provisional
Acceptance Test;
b.
Any period after completion of the Provisional Acceptance Test, in
excess of the time gained by its early completion with respect to the
Expected Provisional Acceptance Date, required, for reasons
attributable to the Contractor, for repairs, adjustments and retesting, to
demonstrate that the Unit with the Equipment Package successfully
achieved the Minimum Performance Levels (eventually the Contractor
is entitled to use the time gained by early achievement of Provisional
Acceptance for corrective measures later on without paying Liquidated
Damages for delays for the respective period); and
c.
Any period after Provisional Acceptance, in excess of four (4) days,
required for reasons attributable to the Contractor, for repairs,
adjustments and retesting, to improve the Performances of the Unit
with the Equipment Package in order to achieve the Guaranteed
Performance Levels.
4.
Reserved.
5.
Liquidated Damages for Under- Performance (LDUP)
5.1
General
5.1.1
Wherever the Unit with the Equipment Package does not achieve due to
reasons attributable to the Contractor the Guaranteed Performance Levels with
respect to any L.D. Parameter at the Final Acceptance Test, the Contractor is
liable to pay Liquidated Damages for Under-Performance (LDUP).
5.1.2
The rates of LDUP stipulated below fairly represent Purchaser’s estimate of
the techno-economic factors that affect the extent of Purchaser’s minimum
direct damages in cases of failure to achieve the Guaranteed Performance
Levels with respect to the L.D. Parameters.
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5.1.3
The rates of LDUPs under article 5.2 below are already calculated taking into
consideration the full life expectancy of the Units – namely 20 years.
5.2
Subject to the provisions stated above, the LDUPs with respect to the
Equipment Package(s) shall be calculated as follows:
For failure to meet guaranteed electrical power consumption of each
Equipment Package - at the rate of USD 1,890 per kW, for results in excess of
the value guaranteed in item 1.5 of this Annexure.
5.3
The Contractor shall pay the Purchaser the amounts due as LDUPs on the
basis of the rates stipulated above. However, the Contractor shall not be liable
to pay LDUPs in aggregate under 5.2 above more than 10% of the Unit
Contract Price for not achieving guaranteed performances by the the related
Equipment Package.
5.4
Failure by the Contractor to pay the amounts due within sixty (60) days of
Purchaser’s demand shall constitute a breach by the Contractor of a
fundamental term of the Contract.
- Final -
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