Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (5035)	11/28/1998 12:50:00 PM
From: Doug	Read Replies (1) \| Respond to of 21876

Frank: In most large projects including Space,Defence, Power etc the Contractors with the largest Asset base and experience or their Proxies vie with each other for the award of one Contract which is one document for a complete project. In many cases, they may supply a majority of the total equipment inhouse whilst procuring the rest from other parties either on open tender basis or on a Customer prefered/selected basis. The Contractor is responsible legally to meet the RFP in its entirety. In such projects as described above which run into Billions, no prime acted as OWNERS rep. They were on opposite sides from start to finish. The word Prime is only used in Contract Management parlance to distinguish the SUBCONTRACTORS but is never used in the CONTRACT document itself.In such Contract document there is just one Contractor and one Owner. The prime Contractor is responsible for dealing with the SubContractors who then refer to the main as the PRIME just to show the hierarchy and subordination. It is a term not used in PUBLIC press releases but used extensively in Contract Management. On award of the Contract, it is quite usual for the Sub-Contractors chosen to advertise in their promotions that they are suppliers to the Project against the main Contract. In reality, they are only legal Subcontractors to the prime. They have no contract between themselves and the Owner. Thier contracts are with Prime. In all these cases, the Owners have their own direct or seperately Contracted out procurement evaluation Agencies,Audit, Overseeing, Test trials and Inspections staff. If there was one Contract for the project , it is most likely a Contract between the Govt agency and one Contractor. Govt's do not enter into a single Contract document for the supply of goods and services with multi-parties located in different countries. On the other hand it is possible that there are 3 separate Contracts for 3 distinct sets of goods and services. If so, it was quite coincidental that all 3 got released together. To meet such Contractual procedures for large projects, Companies form Alliances. The SIEMENS NEWBRIDGE alliance is a typical one. I am sure SIEMENS have put it to good use in quoting as PRIME for the new EUROPEAN NETWORK whose award is to be decided next week.

To: Frank A. Coluccio who wrote (5035)	11/28/1998 3:11:00 PM
From: Scrapps	Read Replies (1) \| Respond to of 21876

Being a GC myself I think you have put it together very well. The prime would have to be CP or someone yet unnamed...at least to my thinking. Also when I've had the roll of the prime, hiring a huge company as a Sub is no big thing, it's very common matter of fact. Although my field is in the home building market...I think it relates in this respect. In any event it's obvious much it still unknown about the particulars of the deal. Thanx