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RE: [Lansdale] Philadelphia - SEPTA Silverliner V eMU order

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  • Ken Houseal
    Mitchell, I m aware of that. That doesn t mean Hyundai Rotem is doing a great job. They are extremely late delivering SEPTA s Silverliner V cars and SEPTA is
    Message 1 of 5 , Mar 20, 2013
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      Mitchell,
      I'm aware of that. That doesn't mean Hyundai Rotem is doing a great job. They are extremely late delivering SEPTA's Silverliner V cars and SEPTA is celebrating that? And the delay is pushing back Boston's deliveries!
      Boston ain't happy but stuck with the contracts vs. cancellation costs. Super way to do business, its usually frankly called "screwed". End of empathy.
      Ken

      To: Lansdale_rails@yahoogroups.com
      From: mitchell@...
      Date: Wed, 20 Mar 2013 22:33:00 -0500
      Subject: RE: [Lansdale] Philadelphia - SEPTA Silverliner V eMU order


























      >And I believe it is Boston who has become so frustrated with their late

      >deliveries from Hyundai Rotem that they are ready to pull the plug!



      The frustration is understandable, but the way the contracts are written,

      it can cost much more to cancel the deal than to put up with the delays.
















      [Non-text portions of this message have been removed]
    • Matthew Mitchell
      ... I don t have any empathy for them either, and DVARP has made clear we want SEPTA to insist on the full cash damages payable under the contract for late
      Message 2 of 5 , Mar 20, 2013
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        >I'm aware of that. That doesn't mean Hyundai Rotem is doing a great job.
        >They are extremely late delivering SEPTA's Silverliner V cars and SEPTA is
        >celebrating that? And the delay is pushing back Boston's deliveries!
        >Boston ain't happy but stuck with the contracts vs. cancellation costs.
        >Super way to do business, its usually frankly called "screwed". End of
        >empathy.

        I don't have any empathy for them either, and DVARP has made clear we want
        SEPTA to insist on the full cash damages payable under the contract for
        late delivery and other breaches, rather than the kind of negotiated
        settlement that got us the problematic subway-surface CBTC system or engine
        2308.

        But as the Vs got later and later, there were a lot of people who thought
        SEPTA ought to cancel the contract and go get the trains from someone else,
        and we had to explain why that would be counterproductive.

        And even if MBTA was able to pull the plug on the contract without losing
        money, it would be even longer to get cars from an alternate supplier.
        You'd have to put it up for bid, select and execute the contract with the
        bidder, and give the bidder time to mobilize. Probably two to three years
        just to get the first car to the start of the assembly line, assuming the
        company had slots on the line available, and they usually try to book them
        several years ahead.
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