Hoku Materials Inc., a wholly owned subsidiary of Hoku Scientific Inc., has entered into a change order agreement under its cost-plus-incentive construction contract with JH Kelly LLC, to clarify the schedule for completion of Hoku's planned 4,000-metric-tons per-year polysilicon production plant.
Under the original contract, as previously amended by earlier change orders in 2008, JH Kelly had the potential to earn up to $5 million in bonus payments upon the achievement of specified schedule, budget and safety goals.
Under the change order, JH Kelly still has the potential to earn up to $5 million in bonus payments, the companies explain. But the weight of the bonus payments has shifted toward meeting Hoku's schedule goals, including the reactor demonstration in the second quarter of calendar year 2009, partial commercial operation in the second half of calendar 2009 and full commercial operation in the first half of 2010.
SOURCES: Hoku Materials Inc., JH Kelly