Commercial operation does not eliminate technical risks for Montenegro’s energy and infrastructure projects. Lenders must continue monitoring asset performance during the defects and warranty period to protect revenue, enforce contractual obligations and prevent additional repair costs.
Problems may emerge during the first year of operation, including equipment underperformance, drainage defects after heavy rain, unstable control systems and installation or design weaknesses. Contractors and original equipment manufacturers (OEMs) may be responsible for repairs, provided defects are properly documented, notified and enforced.
Reduced availability can lower revenue, while repeated outages may affect power purchase agreement (PPA) obligations. Defective transformers or converters can require lengthy replacement periods. Releasing retention payments or bank guarantees before outstanding obligations are resolved can leave owners financing repairs that should remain the contractor’s responsibility.
Independent engineering oversight after the commercial operation date (COD) allows lenders to monitor defect resolution, availability, performance guarantees, warranty claims and outstanding liabilities, including whether available security is sufficient.
Renewable assets have specific performance obligations: wind turbines are subject to availability and power-curve requirements, solar plants depend on inverter, module and tracker performance, and battery systems rely on degradation and capacity warranties. Other infrastructure, including pavements, structures, waterproofing, signalling, IT systems and mechanical equipment, also carries defects risks that may emerge only after sustained use.
The Owner’s Engineer can maintain continuity by preserving construction records, test results, correspondence and punch lists, providing evidence when responsibility for defects is disputed. This is particularly relevant when operations teams take over without the full history of design changes and contractors’ corrective commitments. Maintaining technical oversight through final completion helps sponsors enforce warranties and protect asset value. For Montenegro’s investment projects, the process extends beyond initial revenue generation to the resolution of defects and confirmation that contractual performance requirements have been met.
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