Variations- Change Orders- Per My call Tuesday- Thanks ,
 Per my call and your response.  

On Arcos - the horse is out of the barn-  They start shipping turbine engines 
in a month and the HRSG steel in less- 
 
----- Forwarded by John G Rigby/ENRON_DEVELOPMENT on 04/17/2001 06:25 PM -----

	John G Rigby
	03/28/2001 09:26 AM
		 
		 To: Bob Carter/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, Sheila 
Tweed/HOU/ECT@ECT, Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: 
		 Subject: Variations- Change Orders- GE - impacts on manufacturing- Need your 
thoughts today .

One of the World Hunger issues is that GE does  not want Enron to be able to 
issue a unilateral change order which would impact the manufacturing schedule.

We have the same issue in the Arcos Power Island deal.  

Following is what I intend to propose to solve the Arcos problem and might 
work  for World Hunger:


" Purchaser acknowledges taht Seller's ability to accomodate changes in 
manufacturing scope in a timely or cost effective manner diminish as Seller 
gets further along into the manufacturing process, and after a point changes 
can only be made after assembly completion or in the field without adversely 
affecting Seller's manufacturing obligations to other clients (a "Client 
Impact").  Where such a Client Impact circumstance exists, Seller shall 
identify such constraints to Purchaser in its proposal submitted pursuant to 
Clause 17.2.(b) [time and cost estimate to accomodate the Change 
Order-Variation Order], which Purchaser shall take into account in evaluating 
Seller's proposed cost and time changes arising out of such Variation scope 
change. "




I would appreciate your thoughts as to whether this works for us in the World 
Hunger document-  I do  not want to propose for Arcos if it gives you great 
difficultly for World Hunger.
kay.mann@enron.com