← Back to workflows
Energy Law

Operations and Maintenance (O&M) Agreement

Drafting Operations and Maintenance agreements for energy projects is time-intensive, requiring careful attention to performance standards, compensation structures, and regulatory compliance. Attorneys spend hours customizing templates, cross-referencing industry benchmarks, and ensuring all critical provisions align with project specifications and client expectations.

Automation ROI

Time savings at a glance

Manual workflow16 hoursAverage time your team spends by hand
With CaseMark25 minutesDelivery time with CaseMark automation
EfficiencySave 27.5x time with CaseMark

The Problem

Operations and Maintenance Agreements for energy facilities require balancing complex performance standards, risk allocation, and regulatory compliance across 50+ page contracts. Attorneys spend 12-20 hours drafting comprehensive O&M agreements that address facility-specific requirements, lender covenants, and industry best practices while ensuring commercially balanced terms.

The CaseMark Solution

CaseMark automates O&M agreement drafting by analyzing your facility specifications and project documents to generate complete, negotiation-ready contracts. Our AI incorporates performance metrics, compensation structures, and compliance frameworks tailored to your energy facility type and regulatory jurisdiction.

Key benefits

How CaseMark automations transform your workflow

Generate complete O&M agreements in 12 minutes vs. 5+ hours manually

Ensure regulatory compliance with built-in energy law requirements

Standardize performance metrics, bonuses, and penalty structures automatically

Reduce drafting errors with AI-powered consistency checks across all sections

Customize compensation models and service scopes for any energy project type

What you'll receive

Agreement Overview and Parties
Scope of O&M Services
Compensation Structure
Performance Standards and Guarantees
Bonuses and Penalties Framework
Term and Renewal Provisions
Termination Clauses
Signature Blocks

Document requirements

Required

  • Project Overview or Facility Specifications

Optional

  • Power Purchase Agreement (PPA)
  • Financing Documents or Lender Requirements
  • Regulatory Permits and Approvals
  • Construction or EPC Contract
  • Existing O&M Agreement or Template

Perfect for

Energy law attorneys at law firms representing project owners or developers
In-house counsel at renewable energy companies and power generation firms
Infrastructure project finance attorneys structuring energy facility transactions
Independent power producers managing facility operations and contractor relationships
O&M contractors and service providers negotiating service agreements

Also useful for

This workflow is applicable across multiple practice areas and use cases

Loan And Financing82% relevant

Project finance attorneys need O&M agreements as critical security documents when structuring energy facility financing, as lenders require comprehensive maintenance guarantees to protect their collateral.

O&M agreements are essential financing documents that lenders review to ensure facility performance and asset value preservation, directly impacting loan terms and conditions.

M&A attorneys conducting due diligence on energy asset acquisitions must review and draft O&M agreements to ensure operational continuity and define post-transaction service arrangements.

O&M agreements are material contracts in energy asset transactions that affect valuation, operational risk allocation, and post-closing obligations between buyers and sellers.

Corporate General72% relevant

Corporate attorneys advising energy companies need to draft and negotiate O&M agreements as essential commercial contracts governing ongoing facility operations and third-party service relationships.

O&M agreements are fundamental commercial contracts for energy companies that define critical operational relationships, liability allocation, and performance obligations requiring corporate legal oversight.

Real estate attorneys handling large commercial properties with energy infrastructure (solar installations, backup generators, HVAC systems) need O&M agreements to define maintenance responsibilities and performance standards.

Commercial real estate transactions increasingly involve energy facilities requiring specialized O&M agreements to allocate operational responsibilities between property owners, tenants, and service providers.

Frequently asked questions

Q

What types of energy facilities can this tool draft O&M agreements for?

A

CaseMark drafts O&M agreements for all energy facility types including solar, wind, natural gas, battery storage, hydroelectric, biomass, and combined-cycle power plants. The AI tailors performance metrics, maintenance obligations, and technical specifications to your specific facility technology and operational characteristics. Simply upload your facility specifications and the system will customize the agreement accordingly.

Q

How does the tool handle performance standards and availability guarantees?

A

The system creates comprehensive performance frameworks with facility-specific availability percentages, forced outage rates, efficiency metrics, and environmental compliance standards. CaseMark incorporates measurement methodologies, excused performance provisions, and testing protocols appropriate to your facility type. The agreement includes detailed calculation procedures and reporting requirements that ensure transparent performance monitoring.

Q

Can the agreement include both fixed fees and performance-based compensation?

A

Yes, CaseMark drafts flexible compensation structures including fixed monthly fees, variable payments tied to availability or production, cost-plus arrangements, or hybrid models. The system creates balanced incentive and penalty frameworks with performance bonuses for exceeding targets and liquidated damages for shortfalls. All compensation terms include escalation provisions, payment schedules, and adjustment mechanisms for scope changes.

Q

How does the tool incorporate lender requirements into the O&M agreement?

A

CaseMark analyzes uploaded financing documents to identify and incorporate lender-required provisions such as reserve accounts, consent rights, step-in provisions, and operational covenants. The system ensures the O&M agreement aligns with debt service coverage requirements, reporting obligations, and any lender-mandated performance standards. This integration helps satisfy financing conditions and supports project bankability.

Q

What termination and transition provisions are included?

A

The agreement includes comprehensive termination rights for cause, convenience termination options if appropriate, and automatic termination triggers for specific events like extended force majeure or insolvency. CaseMark drafts detailed transition provisions requiring knowledge transfer, training, record handover, and cooperation with successor contractors. The system also includes owner step-in rights and procedures for orderly operational handover at contract conclusion.