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Enron Mail |
Brett, since Enron owns NEPCO - true risk transfer under a fixed price
contract is difficult. However, I do like the behaviour that you get from such accountability (ie) high incentive to get done on time and on budget. My experience with NEPCO on cost plus has been very unfavourable (don't like #1). I will be supportive of any structure that aligns our interests appropriately. You might want to bounce a few ideas off Dan. I have already given him a heads up on the value at stake if we can come in at the low end of the scale and early. Drop me a note on where you end up. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 12/20/2000 05:14 PM --------------------------- Brett R Wiggs@ENRON 12/20/2000 06:07 PM To: David W Delainey@ECT cc: Joe Kishkill/SA/Enron@Enron Subject: EPC for Eletrobolt Dave: Do you have any general guidance on how you would like for me to approach the EPC contract with NEPCO Houston? The three options that we currently have on the table are: Fixed engineering/internal costs with pass-through on external costs with fee. Same structure with cap. Fixed price contract. Our last conversation was very focused on a fixed price contract. My conversations with Dan Leff were moving in the direction of one or two. My concern on a fixed price number is the timing and my negotiating position, but I understand your issues. Any general thoughts would be helpful. Thanks, Brett
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