Discussing future consortium agreement

Consortium member: The general feeling is that your firm should be leader of our consortium.

Consortium leader: Well, basically we don't object, but our share of sup­plies and services is not going to be big.

C.M._X That may be so, but you have a lot of experience in constructing projects in that country, you know the market and business firms very well.

C.L. No objections then, gentlemen. In that case before we begin to draft the consortium agreement let's talk over some fundamental ques­tions.

СМ., Very reasonable. We believe that our agreement should be signed on an exclusive basis, we shouldn't be members of any other consor­tium that will tender for the same project.

CM. ₂ Certainly, we shouldn't. It may lead to giving away commercial se­crets.

C.L. Can we take it that we are unanimous here?

C.M._X Yes, and we must have a provision to keep confidential all business information and a prohibition against competition.

CM. ₂ We are all for it. And who will sign the contract with the customer?

C.L. There may be alternatives. But if we assume that the members will be jointly and personally liable to the customer then it will be proper if each member signs the contract.

C.M.j We couldn't agree more.

CM.₂ And what if the tender is not accepted?

C.L. The consortium will be wound up.

CM._{ There's one more thing we need to consider. It's whether in principle a member should have the right to pull out of the consortium.

C.L. Generally it's not desirable, and personally we are against the right of retirement.

C.M._{ We are with you here, but we believe it would be fair to specify the right of the members to expel defaulting members and to admit new ones.

C.L. That seems to be О. K.

D.

DISCUSSING POWERS AND OBLIGATIONS OF THE CONSORTIUM LEADER

C.L. Good morning, gentlemen. Please, sit down. Are we all here? Let's start with recapitulating the decisions we reached at our yesterday's

meeting on the internal organization of our consortium. Let me read the minutes: (reads)

"Members' meetings should be regarded as plenary meetings of the Consortium, at which all the members should be present, i.e. the quorum is 100 %. If the quorum is not present the meeting shall stand adjourned. Frequency of meetings—every quarter. Notice — by post, 1 month before the date of the meeting. Voting procedure: all the decisions of the members' meetings require a unanimous vote. Each member has one vote." Is it О. K?

Voices: Yes, approved.

C.L. Then let's get on, the first item on the agenda today is powers and obligations of the Leader.

С.ЛГ, May I have my say? The draft says that the leader will coordinate the

, work, keep all the consortium members informed and provide copies

of relevant correspondence. We believe, that the duties should be

* i more comprehensively listed, because it's the most likely area where

.'.; problems may arise.

C.L. Very reasonable. We'll specify this article of our agreement in a more detailed way and present it for your approval tomorrow. Our next point is the leadership fee. Any proposals, gentlemen?

СМ., It may be calculated as a percentage of the price of the contract.

CM.₂ No objections to the method, but the percentage should be fixed af­ter we settle the question of the Leader's obligations.

C.L. All right, then we'll leave it there, shall we?

C.M._{ Let's.

E.

The... company together with two foreign companies agreed to estab­lish a consortium to participate in the tender.

The agreement stipulated that if the Purchaser awarded the Purchaser contract to the consortium the members of the consortium would execute all the works jointly in accordance with the division of supplies and services agreed among the members.

In compliance with the agreement each member of the consortium pre­pared a tender for his share of supplies and services and handed it over to the... company, the leader of consortium who prepared a complete tender and submitted it to the tender committee.

The contract for the turn-key construction of the... complex was awarded to the consortium, since the Purchaser found the consortium bid highly ad­vantageous.

NOTES

1. consortium sing консорциум

Некоторые существительные латинского происхождения в сов­ременном английском языке имеют две формы мн. числа: consortia (лат. форма), consortiums (англ. форма). Ср.: memorandum— memoranda, memorandums.

... когда одной компании или группе компаний сложно осу­ществить проект в связи с тем, что их технические, коммер­ческие и финансовые возмож­ности ограничены. Консорциум чаще всего может представлять собой...

2.... when a project makes too large a technical, commer­cial or financial demand on the resources of a single company or group.

3. The consortium is likely to take the form...

Дата добавления: 2015-07-08