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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: John G Rigby X-To: Bob Carter, Kay Mann, Sheila Tweed, Scott Dieball X-cc: X-bcc: X-Folder: \Kay_Mann_June2001_1\Notes Folders\All documents X-Origin: MANN-K X-FileName: kmann.nsf One of the World Hunger issues is that GE does not want Enron to be able to issue a unilateral change order which would impact the manufacturing schedule. We have the same issue in the Arcos Power Island deal. Following is what I intend to propose to solve the Arcos problem and might work for World Hunger: " Purchaser acknowledges taht Seller's ability to accomodate changes in manufacturing scope in a timely or cost effective manner diminish as Seller gets further along into the manufacturing process, and after a point changes can only be made after assembly completion or in the field without adversely affecting Seller's manufacturing obligations to other clients (a "Client Impact"). Where such a Client Impact circumstance exists, Seller shall identify such constraints to Purchaser in its proposal submitted pursuant to Clause 17.2.(b) [time and cost estimate to accomodate the Change Order-Variation Order], which Purchaser shall take into account in evaluating Seller's proposed cost and time changes arising out of such Variation scope change. " I would appreciate your thoughts as to whether this works for us in the World Hunger document- I do not want to propose for Arcos if it gives you great difficultly for World Hunger.
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