Not only does FBR have advanced technology, they clearly are...

Not only does FBR have advanced technology, they clearly are smart at negotiating business deals. Believe the structure of this contract is brilliant (assuming they get through initial steps and a take up on the initial option of 20 Hadrian's) in that it will incentivise block providers (or linked companies) to be the first for their region to lock in the exclusivity benefits.There is also plenty of benefit for FBR.

For CHR the biggest benefits are:
- low risk with a small "try before you by" in the acceptance stages
- utilisation and profitability gates at each progression step
- plenty of exit opportunities when they have a large enough fleet
- lock in exclusivity all the way up to 300 Hadrian units. This is at least 60,000 houses / year where they lock in the block supply for their business
- presumably this will be cheaper for builders meaning they don't compete just of block supply cost vs competitors. Make it easier to win business. Can also move to larger block sizes to move the cost equation further in their favour. Similarly can assume Hadrian lay rates will progressively be improved from 300/hr closer to 500/hr again improving the cost equation.

For FBR:
- 50% ownership of WAAS will drive significant profits back into FBR, bringing in cash from WAAS operations. Both to move to a cash positive situation and allow funding further expansion. Certainly quicker than relying on % of Hadrian sales and ongoing maintenance contracts.
- Also give FBR a level of control on the execution of WAAS to help tune the model and ensure it is successful.
- have build in protection by removing exclusivity if CHR stop expanding the fleet
- if they want. to progress the same way with other regions, already have a defined contract structure and will be doing so from a position of strength if model is proven in US.

Contract structure is a true win/win, providers Hadrian's perform as expected..

The contract structure above will incentivise block providers globally to be part of the initial exclusivity arrangement for their region and avoid being left out for a number of years. Would expect if CHR picks up the initial option for 20 units and gets some really work performance data,FBR is likely to have the larger block providers at their door to talk turkey and get part of the action.

Of course this can be undone if Hadrian's fall short on performance when run day in day out and prove not reliable.