Page 26 - Megaprojects Playbook

TERMS AND CONDITIONS

◆ Terms & Conditions increase in importance as contract value and scope complexity increase.
Submittals and material orders do not start until a fully executed contract exists.
◆ Require subs to provide comments on T&C's prior to Owner award. This allows Haskell to
assess commercial compatibility prior to subcontractor selection in the estimate.
◆ Warranty lengths and start times.
◆ Insurance for equipment vendors is huge.
◆ Equipment vendors often require milestone payments. Ensure that these are understood
and considered when developing the Haskell proposal and cash flow. This is especially
critical when an initial payment is required to constitute the order.

EQUIPMENT PROCUREMENT PROCESS

◆ Vet equipment vendors like subcontractors.
◆ Research the markets, and get as many comparable bids as possible.
◆ The devil is in the details. DIG into the bids for every detail, ask questions to
your engineers and vendors. DON’T ASSUME ANYTHING.
◆ Know your equipment.
◆ Know your client.

LEAD TIME

◆ Buyout in order of longest lead time considering the sheer volume and
nonstandard sizes of the materials that will be needed.
◆ Ensure that a proper submittal review period is included in the overall lead time duration.
◆ Allow Owner to review interested submittal packages; however, address scope
adds immediately with a Change Order Request and time extension.

BUY-OUT CONSIDERATIONS

◆ Product testing
◆ Payment terms/milestones: This effects subs and vendors.
◆ Cost increases from time of contract to time of approved submittals.
◆ Storage solutions for equipment/materials if you hit schedule delays.

HASKELL | WE CREATE THINGS THAT MATTER 23
CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION. FOR INTERNAL HASKELL USE ONLY.