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Enron Mail |
Per my call and your response.
On Arcos - the horse is out of the barn- They start shipping turbine engines in a month and the HRSG steel in less- ----- Forwarded by John G Rigby/ENRON_DEVELOPMENT on 04/17/2001 06:25 PM ----- John G Rigby 03/28/2001 09:26 AM To: Bob Carter/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, Sheila Tweed/HOU/ECT@ECT, Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Variations- Change Orders- GE - impacts on manufacturing- Need your thoughts today . 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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