Procurement of Materials and Services Sample Clauses

Procurement of Materials and Services. Operator shall arrange for the procurement of Materials and Services (excluding natural gas) necessary for the operation and maintenance of the Facility pursuant to the following provisions. (a) All Materials and Services shall be purchased directly by Owner from Subcontractors, except as otherwise provided in the Site Procedures for small local purchases and purchases necessary to handle Emergencies. At any other time that Operator desires to subcontract directly to obtain materials or services, Operator shall obtain the prior written approval of Owner. In no event shall Operator be relieved of any of its obligations under this Agreement or of any of its responsibilities due to faulty performance of any Work performed by subcontractors. (b) Operator shall identify Materials and Services needed, establish technical and commercial requirements, develop qualified bid lists, request bids/proposals from prospective Subcontractors, evaluate bids/proposals received and provide a recommendation for award and purchase order to Owner for approval and execution. In no event shall Operator take title to any Materials. All purchase orders and bills of lading with respect to Materials shall specify that Owner shall take title to the Materials directly from Subcontractors. (c) In evaluating and selecting prospective Subcontractors, Operator shall make reasonable attempts to optimize Facility costs in consideration of Facility availability and reliability and to otherwise minimize procurement costs. (d) Operator shall receive, inspect, inventory and resolve defects or deficiencies found in Materials delivered by Subcontractors, and shall sign all invoices for the Materials indicating Operator's acceptance of the material as meeting the purchase order. If Operator is unable, using reasonable efforts, to resolve defects or deficiencies discovered, Operator shall promptly notify Owner. Operator shall administer on behalf of Owner any claim or dispute arising under a purchase order. Owner shall provide for direct payment due each Subcontractor in accordance with the applicable purchase order. (e) Operator shall be responsible for supervising, coordinating, and administering all Subcontractors providing Services, including maintenance or construction services.

Procurement of Materials and Services. For certain shared procurement categories, Lemminkäinen utilises a centralised procuring model to achieve economies of scale. The largest categories of centralised procuring are equipment, energy and transportation. The purchases of the business segments are managed centrally and implemented regionally depending on the material to be acquired. The main raw materials of the Paving segment are bitumen and mineral aggregates, of which bitumen is procured centrally. The purchases are carried out in each country with local suppliers. In addition, the company has its own mineral aggregate production in Finland, Sweden, Norway, Estonia and Lithuania. In the Infra projects segment, the centrally managed procuring often includes demanding overall solutions, such as bridge or illumination solutions, or imported goods and services. Local procuring is implemented as projects either based on annual agreements or by local tendering. In the Building construction, Finland, the centrally procured materials and services are covered by annual agreements, which are applied regionally. In addition, Lemminkäinen tenders project specific procurements. The Russian operations make the majority of their purchases with local suppliers in Russian roubles. In Russia, logistics represent a significant share of raw material costs due to the long distances. The Russian operations cooperate with the Paving segment in the procurement of asphalt plants, bitumen, mineral aggregates, energy and machinery and equipment.

Procurement of Materials and Services. On behalf of Owner, Operator shall directly pay from funds held in Owner’s bank accounts all Operating Expenses. Operator shall not be obligated to advance its own funds for the payment of Operating Expenses. Operator shall nominate individuals, to be approved by Owner, who shall have the written authority to sign checks against Owner’s bank account within limits to be agreed between Owner and Operator. Operator is specifically authorized, as provided in a relevant Annual Operating Budget and Plan, to procure materials and services as agent for and in the name of Owner, for which Owner shall directly pay the vendors of such materials and services or reimburse Operator for such materials and services. All invoices for materials and services procured under this Section 4.2 shall designate Owner as the purchaser of such materials and services.

Procurement of Materials and Services. 18 Section 4.3. Inspections of Materials and Work. 18 Section 4.4. Construction and Installation. 19 Section 4.5. Training and Operations. 19 Section 4.6. Facility Site Conditions. 20 Section 4.7. Work Schedule and Detailed Schedule. 20 Section 4.8. As-Builts. 21 Section 4.9. Standard of Performance; Inspection. 21 Section 4.10. Corporate Guaranty Agreement. 21 Section 4.11. Project Manager. 22 Section 4.12. Government Authorizations. 22 Section 4.13. System Turnover Packages. 22 Section 4.14. Owner's Responsibilities. 22

Procurement of Materials and Services. Contractor shall procure, inspect, expedite, deliver, store, warehouse, and furnish all materials and services necessary to construct, Start-Up, commission and test the Facility in accordance with this Agreement.