A Balance of Plant contract, also known as a BOP contract, is used in any type of plants and facilities to represent the infrastructure component of the plant outside if the main production systems. This typically includes all of the power systems in the plant, including the main system and any auxiliary or backup sources that are needed to deliver electricity. It typically does not include the generating unit itself (the turbine), which is usually under a separate and unique contract for design, installation, maintenance, and repair.
Depending on the type of facility and the specifics of the infrastructure and operations, there may be differences in the Balance of Plant contract for firm. Ideally, the contract should be developed specifically for the facility and include all aspects of the plant and facility, including any exemptions or specifics not covered by the contract.
Inclusions in the Contract
It is important for the Balance of Plant contract to be clearly written to include all aspects of the services the contractor is to provide. In new plant development and construction, this typically starts with project management services to be provided and then works through the various stages of the facility development until the project is completed.
With many contracts, the company involved as the BOP contractor becomes the lead project service and the main or principal contractor. In this role, they provide full oversight of construction and ensure all elements of the project are completed to the standards and requirements outlined in the contract.
All contracts should provide a project term, with specific start and stop dates and requirements. An attachment that outlines the full scope of the services contained in the contract is essential, so both the company and the contractor are fully aware of the terms and details of the project. The conditions for extension or renewal of the contract, the specific duties the contractor agrees to perform, and the tasks the owner of the facility will perform is also necessary.
