E. Limitation of Liability. Like other contractors and suppliers, turbine suppliers and plant contractors invariably seek to limit their liability to a single project developer. A common claim is the waiver of consequential, indirect, incidental and special damages. These clauses and the exclusions they contain must be carefully negotiated, as the definitions of such damages can be ambiguous. The turbine supplier and the contractor will generally attempt to limit their respective liability for damages due to late performance to lump sum damages of a certain value, with a maximum limit equal to an agreed percentage of the value of the respective contract. The parties may determine the maximum total liability that a contractor may have; however, the parties may, after consultation, assume additional responsibility for the Contractor. For example, the Contractor may agree that the contractual limitation of its aggregate liability does not apply in cases where the Developer (1) has not fulfilled its contractual obligation under a Power Purchase Agreement, or (2) has received a certain benefit or urgent tax credit due to delays caused by the Contractor. The wind turbine developer and supplier enter into a turbine supply contract in which the project developer agrees to purchase a number of wind turbine generators from the wind turbine supplier, as well as the services of the wind turbine supplier, in order to deliver the wind turbine equipment to the project site and commission it. I. Construction-related agreements. and to protect against the privileges and claims of unpaid subcontractors.
Some of the problems with these warranties are described below. In the context of turbine supply agreements, it is customary for the project developer to require the turbine supplier to provide and maintain performance guarantees in the form of financial guarantees, parent company and SSC guarantees or a mixture of these instruments. In return, the turbine supplier will make its performance subject to the receipt of reasonable payment guarantees, including guarantees from the parent company, payment guarantees and SSCs. While offshore wind projects face a number of challenges, including the total cost of executing projects, a number of developers are pursuing large-scale projects. .