GNG 4170 Chapter Notes - Chapter 5: Heat Recovery Steam Generator, Watt, Cogeneration

• School: University of Ottawa
• Department: General Engineering
• Course: GNG 4170
• Professor: Cameron Tiesma

Document Summary

A ,000,000 contract for the design, supply and installation of a cogeneration facility was entered into between a pulp and paper company ( pulpco ) and an industrial contractor. The contract provided that the electrical power generated by the cogeneration facility was not to be less than 25 megawatts. A liquidated damages provision was included in the contract specifying a pre-estimated amount payable by the contractor to pulpco for each megawatt of electrical power generated less than the 25 megawatts specified. The contract clearly provided that under no circumstances was the contractor to be liable for any other damages beyond the overall total of ,000,000 for liquidated damages. Pulpco"s sole and exclusive remedy for damages under the contract was strictly limited to the total liquidated damages, up to the maximum of ,000,000. The contract specified that pulpco was not entitled to make any other claim for damages, whether on account of any direct, indirect, special or consequential damages, howsoever caused.