OT27011 - Abandonment and Decommissioning

Ring Fence trades: Decommissioning

Decommissioning in relation to machinery or plant is defined to mean:

1. demolition,
2. preservation pending reuse or demolition,
3. preparing for reuse,
4. arranging for reuse.

The OTO view is that the definition includes removal costs.

The relevant legislation is at CAA90\s62A(3A) (CAA01\s163(4A)).

A claim for the costs of preserving machinery or plant is not affected by whether, in the event, it is reused, demolished or partly reused and partly demolished.

Similarly, a claim for the costs of preparing and/or arranging for reuse is not affected by whether, in the event, the machinery or plant in question is in fact reused.