Contract negotiation

Services for Nuclear Newbuild

Key challenges

Asymmetric information and lack of experience in formulating contracts for nuclear power plants

A contract for a nuclear power plant can consist of thousands and thousands of pages. The party understanding the substance and content better has more leverage in negotiations. As plant vendors have decades of experience from a large number of projects, the Owner-Operator (or Nuclear Energy Programme Implementing Organization, NEPIO) in a newcomer country may be at a disadvantage. To overcome this disadvantage, the Owner-Operator will need to build up its competence in nuclear technology and licensing, as well as its capability to negotiate the legal and commercial terms for a feasible contract.

Fortum´s Value Proposition

Fortum has been involved in contract negotiations with several plant vendors in various contexts. We understand the challenges of a newbuild project, including the special characteristics of first-of-a-kind technologies. We can identify the typical pitfalls and make use of our lessons learned in the contract negotiations.

Due to our technical excellence in all disciplines and Owner-Operator experience, the Customer will understand the full effect of technical as well as legal and commercial requirements on the project and over the lifecycle of the plant.

Kymäläinen Olli

Olli Kymäläinen

Senior Manager
Newbuild and Operating Services
Tel: +358 50 453 5388
olli [dot] kymalainen [at] fortum [dot] com

Nuclear power

Support for Nuclear Newbuild projects