Contractual Service Agreements

Changing the Focus from Minimum Price to Maximum Value

Whether you currently operate a gas turbine or are considering the purchase of a new one, maintenance and reliability are two of the largest factors affecting plant profitability. Unfortunately, they’re also among the largest unknowns. A Contractual Service Agreement (CSA) from GE can reduce your maintenance cost risks and provide contracted performance guarantees to help maximize project upside.

Features & Benefits

With a GE Contractual Service Agreement (CSA) for your gas turbine, we provide maintenance, including parts, services and repairs, for a fixed price over a specified period of time. Compared to handling maintenance and repairs on a per-incident basis, our CSA offers several advantages:

Guaranteed Plant Performance

Your plant’s output, efficiency and availability levels can have a dramatic impact on your profitability, so it doesn’t make sense to use a program that guarantees only a level of maintenance. Since our CSAs guarantee levels of performance, we are motivated to ensure your plant performs at or above the contracted levels. We are liable for liquidated damages in the unlikely event that the guarantees are not met, and share in the increased upside if the plant performs above the guaranteed levels. Because we share in both the risk and the reward, your goals become our goals. The result is a win-win situation.

Fixed Maintenance Costs

With a CSA, you know what you will spend on maintenance for the duration of the contract. The planned maintenance commitment provides scheduled replacement of parts as prudently necessary, including replacement in the unlikely event that parts do not last as long as initially anticipated. Such predictability means you can plan more effectively, minimize risks and avoid using emergency funds.

The Advantage of GE’s Innovative Technology and Vast Experience

As a technology leader, GE continuously improves our turbines, parts and maintenance procedures. The CSA drives us to invest in technology not only to meet but to surpass expected maintenance levels. Because we routinely maintain hundreds of turbines, our service teams can adopt procedures that have been successful elsewhere. Our advanced monitoring and diagnostics tools identify trends and reduce the risk of unplanned maintenance. GE’s worldwide service network gives CSA customers who need emergency service or parts priority over other service requests. In addition, GE maintains dedicated resources for enhanced responsiveness and to further our commitment to superior performance.

Analyzing the Gap between Existing and Ideal Conditions

Before GE can begin its efforts to increase your plant’s profitability, we must understand its history. We evaluate your equipment’s condition and performance to answer questions such as:

  • What are the costs and benefits of operating your plant in its current condition?
  • What is your plant’s uprate potential?
  • What are the costs and benefits of performing an uprate?
  • What parts do you have in inventory? What is each part’s age, condition, and anticipated life, and how does it fit into an overall parts inventory strategy?

After we collect this information, we develop a Contractual Service Agreement (CSA) tailored to your plant that may include appropriate guaranteed performance levels for output, efficiency and availability.

Already Planning an Uprate for Your Unit?

Entering into a CSA after an uprate helps keep your plant running at the improved performance level longer. Each CSA is customized to take into account the condition of the unit at the beginning of the agreement. The CSA incorporates the uprate into existing planned maintenance, and customizes performance guarantees to meet plant performance criteria.

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