Property And Plant Testing And Commissioning Clause


It is hereby noted and agreed that this reinsurance does not cover destruction of or damage to property in course of construction or erection, dismantling, revamp or undergoing testing or commissioning including mechanical performances testing and any business interruption resulting therefrom.
Acceptance of property hereon is subject to satisfactory completion of the following procedures :

1.    Mechanical Completion including Testing.
2.    Testing and Commissioning.
3.    Performance Testing conforming to 100 % Contract Design Criteria maintained by the entire plant in a stable and controlled manner for a continuos ongoing period of a minimum of 72 hours duration.
4.    Official acceptance by the Insured following formal hand over without reservation or waiver of guarantee conditions. It being understood that no equipment faults or punch list items affecting operational integrity of the plant are outstanding and that no temporary structures and no modifications remain.

NOTWIHSTANDING the above, attachment of property and plant hereon to be agreed by Reinsurers. It is further noted and agreed that terms and conditions to be reviewed, if required by Reinsurers.

It is further noted and agreed that the above provisions do not apply to normal routine activities and scheduled turnarounds.
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