Overview of Operations
The exclusive agreement between UMACO and the manufacturer restricts the manufacturer from supplying the new homes to any other party. In return the UMACO will undertake world distribution rights and commit to order a minimum quantity of new homes from the manufacturer on at “SPECIFIED MARGIN” above cost based on international accounting standards. The “SPECIFIED MARGIN” will be 20%. Final agreement on the “SPECIFIED MARGIN” is yet to be agreed by all parties.
There is a forecast 15 month establishment period to design and build the factory, to source and install all required machinery and equipment, and to recruit the appropriate personnel.
UMACO is responsible for the designing and placing the order contract complete with full procurement lists to the manufacturer.
UMACO will license the manufacturing to the manufacturer.
The manufacturer will be responsible for the shipping of the house to the destination port. UMACO resumes responsibility upon arrival of the house at the destination port.
UMACO is responsible for the internal transportation of the house from the destination port to the construction site, the assurance the ground works are prepared according to plan, and the final assembly of the site.
During Hydraulic/Electrical Expansion
The most vital step of the operational process was to locate the ideal manufacturer and negotiating a suitable agreement.
There is a forecast 15 month establishment period to design and build the factory, to source and install all required machinery and equipment, and to recruit the appropriate personnel. During this period NHI will manufacture nine prototype houses for UMACO.