Power, Vol.151, No.11, 80-83, 2007
Milestones on the road to commercial operation
The electric power industry is capital-intensive, and it takes several years to build and commission a baseload plant for commercial operation. Owners seek contractors who are willing-given proper incentives-to build a plant for a lump-sum price with a guaranteed schedule and performance. Matching an owner's wants with contractors' needs is an exercise in allocating risk. Avoid the contract traps that can stall a project and cost millions to resolve.