What costs seem likely to be incurred and by whom? Who might be liable to cover the costs? Is NB Power likely to get all of their costs covered? If not which costs are at risk?
Diagram the parties. Estimate from the limited data who is responsible? Identify issues.
The following costs would be incurred: 1. Replacement Cost: Cost involved in manufacturing the new turbines. 2. Delay Cost: As it would take another 1 year to manufacture the new turbines which requires NB power to get the old rotors re installed. 3. Loss of Revenue: As the new turbines were expected to increase the…show more content… John * CIF Point Lepreau * DDU Point Lepreau
DEQ St. John: Delivered Ex Quay St. John:
The seller (Siemen’s) was supposed to clear the goods for export and was responsible of making the turbines available to NB Turbines on the quay. The turbines sank when they were being transferred onto a barge for shipping to the nuclear reactor by Irving Equipment.
Costs Incurred by Buyer (NB Turbines) would be as follow: * Replacement Cost: Cost of PO,Buyer would have to pay for the new turbines as they were shipped on the quay and sank later. * Insurance Cost: Neither seller or buyer has the obligation of insurance, so as the turbines sank after being made available at the port, so NB Turbines would get the basic insurance coverage from Irving company or/and money from some other insurance company if they had arranged for some sort of special insurance. * Lawyer fees * Repair Cost, Delay cost, Import, Duties,Taxes, Documentation cost, Filing Claim, Loss of Time, Loss of revenue, Re installation cost of the old turbines which they had taken out in anticipation of the new ones, Carriage charges for shipping the turbines back to UK for repair and bring them back, also for the shipping from St .John to Pt Lepreau.
Costs Incurred by Irving Equipment would be that of Investigation along with paying for the Insurance of 214 tonnes of equipment. Depending upon NB