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| Re: Payment of Bus Deliveries (172016) | |
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Re: Payment of Bus Deliveries |
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Posted by kcram3500 on Fri Nov 6 18:54:08 2009, in response to Payment of Bus Deliveries, posted by JAzumah on Fri Nov 6 13:19:37 2009. FTA-funded orders are generally paid at once when the contract (or contract segment in a multiple-delivery contract) is fulfilled. Private and non-FTA purchases are normally funded by a bank/lessor who has a relationship with the customer, or by the manufacturer's financing division, with the terms arranged at the time the order is placed.It was the former situation that cost MTS the NJ Transit contract... MTS was due $94 million for the 289 units, but the FTA wasn't writing the check until NJT received and accepted all 289. When a manufacturer bids on a contract of that size, it's understood that they already have the resources to actually build the buses before getting paid. |
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