Lloyd’s Market Association Bulletin

The Onshore Energy Business Panel (OEBP) Engineering Support Group has published an update to the Property and Plant Testing and Commissioning Clause (LMA5197B).

Key points to highlight are as follows:

• ‘Performance Testing conforming to 100% Contract Design Criteria…’ is amended to ‘Demonstration of satisfactory plant operation at 100% design capacity…’.
• Terminology updated to align with standard industry project terminology.
• ‘Ramp up’ to 100% design capacity is explicitly excluded.
• Technical content of the Information Request Template is largely unchanged except for some additional detail concerning ‘demonstration of plant operation at 100% design capacity’ (as opposed to Performance Testing).

The updated clause will be published with the reference LMA5197C and can be downloaded from the LWR. The previous version (LMA5197B) will be archived.

If there are any questions these should be directed to dele.fajimolu@lmalloyds.com.

All LMA model documents are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model documents as they see fit; the LMA does not protect its intellectual property rights over model documents. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk. Model documents are available on the Lloyd’s Wordings Repository (LWR).

Dele Fajimolu
Senior Executive, Technical Underwriting
dele.fajimolu@lmalloyds.com

Steven Dennis
Senior Executive, Technical Underwriting
steven.dennis@lmalloyds.com