FLUOR PULLS OUT BECAUSE OF RISK
Posted on AOL Motley Fool by: Milton Fletche, AON Risk Services (Insurance)
<I simply do not buy that Fluor-Daniels suddenly decided the y2k issue was not as improtant as thought earlier. There is more to this then meets the eye. If Fluor is seeing a decline in its construction business, why not ramp up for y2k services?>
Fluor backed off because of the Liability issues. Their insurances will not cover them for repairing Y2K problems that ultimately don't work despite their attempts to remediate .... especially where they were the designers/specifiers of the equipment that now needs remediation! This is why their head Y2K man left for Topro.
This is from an earlier post on 11/13/97 by Mr Fletcher "MFlet" on AOL
Although I was not part of the team that considered who should be a part of the AON sponsered ARM2000 (AON Risk Management 2000) program, I am familiar with the program. I am sure that there is no "certification" by AON involved. Rather members of the Project do their own thing as part of an overall comprehensive approach to the Y2K problem. I would not think that AON would want to take on the liabilities inherent in any "certification" process.
Tpro is, to my uncertain knowledge, the only vendor out there that is widely recognized to be competent in working the Factory floor. Their market is, and because of the increasingly difficult employment market for qualified engineers,an dhas to be limited to the largest manufacturers. Their services can go for as high as $800,000 for one site (admittedly a large one). Large companies are beginning to Triage their operations for Y2K compliance work.
All this bodes well for the short term work load and profits of Y2K professional remediation companies. It is estimated that 30% of the work on the Y2K problem will be achieved AFTER 1/1/2000! so there will be a continuing revenue stream after this date. Long term investors should be cautious however as to the viability of Y2K firms into the next century. Make sure that they will have products to sell to the marketplace after the mess is solved!
Milton Fletcher
AON Risk Services
Los Angeles
Subject: Re: Negatives to discuss....
Date: Sun, Nov 16, 1997 19:07 EST
From: MFlet
Message-id: <19971117000701.TAA19153@ladder02.news.aol.com>
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