Operations and Maintenance
Operation & Maintenance (O&M) contracts is designed to cover all the aspects and bonds which are necessary to run any power plant in a safe and most efficient manner. This agreement helps minimize the risks and maximize the profit. Creating O&M in an ongoing process improves the sustainability and efficiency of the project.
The O&M process helps sustain the project’s overall profitability by addressing equipment reliability, and efficient operation. Maintenance activities involve physically inspecting and caring for equipment. These O&M tasks, when performed systematically, increase reliability, reduce equipment degradation, and sustain energy efficiency.
It has become quite difficult over the time to generalize between technical assistance contracts to big operations and maintenance projects. The standard duration for the contract lies somewhere between 2 to 5 years
The Key factors that make the outsourcing tha O&M section of the work are given below:
- Contractor to manage a range of activities
- Limited potential for improvements in efficiency
- Usable where condition of assets is uncertain
- Usable where client is unwilling to accept more extensive risk
- Usually no transfer of employees to the contractor