Project Management China

Product	Multi stack heat treatment equipment for steel strip.
Volume	About 3.5 million EUR.
Buyer	In Wuhan / China.
Seller	German exporteur.
Situation	Right before dispatch the buyer informed the seller, that most likely the place of erection will be changed, and that therefore the project shall be stopped Term of delivery is CIF Shanghai. The seller delivered the equipment completely and presented the documents for delivery rate to the bank for payment out of LC. Thus 80% payment received 2.5 years later the buyer requested the seller to proceed with the project without delay at the original place of erection and to delegate staff for supervision of erection and commissioning
Special problem	The export credit insurance contract has expired in the meantime. Besides the client rating has been downgraded. The export credit insurer was no more ready to provide insurance cover.
Measurements	The project has been introduced to another export credit insurance company. These has further on assessed the buyer as positive and was ready to grant insurance cover for the remaining amount of 20%.
Success	Agreement of a memorandum of understanding with the dictum to save face. No formal amendment as provided for in the contract No increase of contract price. This was objectively impossible due to missing allocation of foreign currency No more warranty and waiving of bank guarantee for warranty period New export credit insurance contract closed with other insurance company Provision of additional amount of 40 thousand EUR in case of additional working-man-days become necessary due to parts becoming defective. The seller has included this amount in the export credit insurance contract

Further information I gladly provide on request in a personal meeting.