industrial projects | equipment procurement The first challenge resides in the identification of the equipment, their bundling into equipment packages and developing their technical specifications. All this does not necessarily take place in a smooth way especially that this step is commonly performed when design is still at a conceptual level. Equipment is packaged to allow each package (with all its components) not only to be awarded to one supplier, but also to be sizeable enough to attract various interested bidders ready to give priority to such equipments in their production and supply chain. The second challenge is to build an efficient procurement cycle agreeable to all parties, especially to the client. This cycle should identify all procurement activities to be performed along with the needed approvals. It should respect the administrative and managerial requirements in the client’s organization in terms of approvals, signature of purchase orders, opening of Letters of Credit, and issuance of payments. In many instances a complex cycle that often includes several steps and various reviews and approvals tiers within the client’s organization is by itself a source of considerable delays. The third challenge of equipment procurement in the client consultant - and contractor trifecta is the formulation of commercial terms that are acceptable to the supplier while preserving client’s interest. Various standards are consulted in that respect including the Model Form of General Conditions of Contract recommended by the Institution of Mechanical Engineers, the Institution of Electrical Engineers, and the Association of Consulting Engineers for use in home or overseas contracts for the supply of electrical, electronic or mechanical plant. Yet, it has been widely observed that most suppliers are reluctant to fully comply with the commercial terms and require their own terms and conditions to take precedence over any other terms. Often time, due to the high degree of specialization or the proprietary nature of the equipment the design consultant has a very thin margin for discussion of commercial terms. 8