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Golfgod

03/05/14 8:30 PM

#261104 RE: Street Smarts #261102

I beleive that JBI will continually require an operational processor for demonstration and testing purposes, for those reasons, I can't see them selling processor # 3
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the big guy

03/05/14 10:46 PM

#261111 RE: Street Smarts #261102

Well I can't really provide it, because this is a real project that I worked on, and I wold be divulging confidential information if I did so, wouldn't I? All I can tell you is that this is just one of many projects I have worked on, and it had that unique quality.

Tearing down equipment is not an easy thing. I worked in a nuclear environment once, and deconstruction is probably more expensive than construction. Every NATO country had places in the '50's where they experimented with nuclear energy. It is the basis of the nuclear industry today.

Well, they must be cleaned up now. Not only do you have to deal with radioactivity, you have to deal with asbestos and other contaminants. All fluids have to be removed. Fire safety has to be maintained literally until the crane ball starts to move (these were wooden buildings). Disconnecting services has to be planned, and that can be more work than connecting them in the first place.

It is natural that engineering is going to be done for the Owner by a third party. I worked in an industrial gases project environment. We utilized out own engineers for all of the Electrical and Mechanical (piping) work for any installation. Civil was outsourced because we were not particularly god at it, and since out plant was on our customer's sites (much like JBI) we utilized a consulting firm that already had extensive knowledge and data on the geology.

If JBI sells a processor to a customer it is going to require extensive engineering work, which will most likely be done by a firm hired by the Owner. Since it will most likely be a Union Construction shop, it will require Union labor, will cost Union rates, and will require an extensive set of plans, which means lots of engineering work needs to be done.

The SAIC Summary details this quite well, and the numbers jive with my experience.