Enron Mail

From:benjamin.rogers@enron.com
To:oscar.dalton@enron.com
Subject:Enron North America/Rochester Generator Project
Cc:
Bcc:
Date:Wed, 8 Mar 2000 01:58:00 -0800 (PST)

---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 03/08/2000
09:58 AM ---------------------------


Teddy Ward
03/08/2000 07:17 AM
To: Benjamin Rogers/HOU/ECT@ECT
cc:
Subject: Enron North America/Rochester Generator Project

Ben: Because of the short time frame I am just forwarding the questions from
our broker (representing the surety) concerning your request for bid bond.
Very valid questions and also will impact your performance bond should you
win and need one. Please try and get back to me asap as this is a very short
time frame for the bond. Thanks.
---------------------- Forwarded by Teddy Ward/HOU/ECT on 03/08/2000 07:11 AM
---------------------------


"Phil Bair" <pbair@jwortham.com< on 03/08/2000 06:52:45 AM
To: Teddy Ward/HOU/ECT@ECT
cc:
Subject: Enron North America/Rochester Generator Project



Teddy-We are preparing the bid bond based on the request received yesterday
evening. The bid specifications indicate liquidated damages in the amount of
$2,375,000 PER DAY. I assume Enron will not accept damages at this level.
Please check to determine if the bid will be qualified in this area-and what
alternative damages may be offered. Due to the unusual size of the penalty
relative to the contract value, this could have an impact on reinsurance.

The contract indicates a normal one year warrenty from the contractor. The
charge for this warrenty is included in our standard performance bond rate.
I have bonded a number of generator contracts similar to this, and frequently
there is an option for the contractor to offer an extended warrenty up to 5
years. Since this would impact the premium charged, you may want to check to
see if this option exist so we can get the pricing correct in your estimate.

Thanks.
3/8/00

Philip N. Bair
713-346-1378 (Telephone)
713-520-1260 (Telefax)