Procurement of Materials and Services. Operator shall arrange for the procurement of Materials and Services (excluding natural gas and fuel oil) necessary for the operation and maintenance of the Facility pursuant to the following provisions.
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. 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. 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.
