Typically, when you select a contractor through the RFP process, the initial contract will be based on other existing contracts and the details outlined in the RFP proposal. The terms may evolve as a result of negotiation or requested additional analysis and information.
Some primary sticking points that often take up the bulk of the negotiations include:
This provision protects one party against damages and costs caused by another party’s mistakes. This a powerful provision so you should consult your risk-management specialist.
City contracts may require provisions addressing the rare possibility that future budgets will not appropriate the funds to pay the contract terms. In that case, you may need to negotiate with the other party to include acceptable non-appropriations language.
This clause specifies events that trigger early termination, including early terminations initiated by the installer or vendor, such as if the buyer moves operations, its property is condemned, or it fails to make payments. Termination can also be initiated by the buyer – if the developer exhausts its right to pay project-delay damages, or the system consistently underperforms by a predetermined percentage.
A clause that allows the installer or vendor to suspend or terminate energy production due to an event beyond the party’s control (e.g., a natural disaster). When well-drafted, this provision will list items that both parties agree are and are not force majeure events.
