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site (the construction contracts) and negotiated a power purchase
agreement with Central Maine Power Co. (CMP).
Construction Contracts
The construction contracts included (1) an agreement with
Cianbro Corp. (Cianbro) for general construction and the
installation of equipment, (2) an agreement with Allis-Chalmers
Corp. (Allis-Chalmers) for a turbine/generator and related
equipment, and (3) an agreement with Acres International Corp.
(Acres) for design and engineering services.
None of the construction contracts entitles AWP to a
complete and working hydroelectric generating facility. In
particular, Acres was only responsible for (1) preliminary
engineering of the facility, (2) determining the total project
cost, (3) final design of the facility, including the creation of
detailed construction drawings, and (4) management of the
construction process. Acres was not obligated to deliver to AWP
a functional facility. Acres did not function as a general
contractor for the construction of the facility. The only
warranties provided by Allis-Chalmers and Cianbro were that the
work that those companies performed would conform to the
requirements of their respective contracts and would be free from
defects in design, workmanship, materials, and/or performance.
Cianbro and Allis-Chalmers did not guarantee each other's work.
The prices charged by Allis-Chalmers and Cianbro were not fixed
and were subject to increases or decreases in the event those
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Last modified: May 25, 2011