October 14, 2021

What Is A Long Term Service Agreement

Filed under: Uncategorized — dpk3000 @ 1:14 pm

For example, the running time of an LTSA for a gas turbine may expire after the completion of the second scheduled “master inspection” of the turbine. The potential pitfall of using this approach to define the duration of the contract becomes clear in a situation where the operational profile of the equipment changes at some point during the life of the ltSA. For example, an owner can expect their gas turbine to be in operation for about 8,000 hours per year. Based on these projections, the owner enters an LTSA whose duration lasts until the end of the second planned “master inspection” of the unit. Assuming that such an operational profile would result in a larger inspection that would be conducted approximately every six years, the owner assumes that the LTSA would therefore expire in approximately twelve years.