brainwave phase 2, page-34

Jan,

Simple answer. The customer (Lynas) is responsible. They pay for the design; they approve the design or ask for redesign. After design is approved they (Lynas) hire a lead contractor who is responsible to build according to the approved design.

It makes no difference to a contractor whether a tank is concrete or stainless steel, whatever the customer wants and has approved will be installed. The contractor is being paid whether it is steel or concrete.

The customer (Lynas) is responsible to inspect and approve parts and equipment as those items arrive onsite. In the USA, on dozens of projects I was involved with the customer had to provide paper-work giving the go ahead to install the parts and equipment they purchased for the project. In the US, if spec sheets are lost or misplaced, those items will not be installed until the specs are found; if they are never found those particular items will NEVER be installed.

Those items will have to be purchased again having spec sheets which accompany the items. Any refinery in the USA has parts just lying in the warehouse because spec sheets were lost. I have seen $16,000 valves sitting for years because of lost paper-work. The old ones had to be used until new arrived many months later.

No USA contractor would ever take the needless risk of installing something off-spec and chance a law-suit. There is no good reason to do that and a mighty good reason not to; the contractor will get sued and have to pay. Lost production value of a week or two in a major oil refinery would bankrupt smaller contractors.

Customers buy parts and equipment used in their plants, not contractors. Contractors build with the customer’s plans and parts, simple as that in the USA based on my career in construction working for Bechtel, Chicago Bridge and Iron, Nooter and a few others you may never have heard of. I worked for contractors in chemical plants, oil refineries, and power plants (nuclear, coal, gas).

Customers approve construction and sign off upon completion or ask for modifications. Customers approve modifications or modifications do not get made. It would be insane for a contractor to make modifications a customer didn’t approve; simply unheard of and no reason to do it.

Customers, engineers, contractors all work together daily, develop relationships, go over every detail and concern about a project. Problems are often worked out to the satisfaction of all 3 entities. But the final say and ultimate responsibility is with the money. The customer decides what he will pay for and that is what he gets.

Lyans absolutely knew what was being used in their plant, IMO and approved it being used. At least that is how it is the USA based on my lifetime career in construction.
IMO, speculation that anyone other than Lynas is responsible for the state of the LAMP is unwarranted.

There are things which EN would surely have changed but he doubtless was overruled by NC, IMO. A CEO lacking integrity lead to installation of parts and equipment lacking integrity. Now EN has to fix it. Time is obviously a problem.