Hong Kong, Chun Wo Development Holdings Limited has signed a Memorandum of Understanding (“MOU”) in respect to the provision of construction management services in the US on 11 November 2015 with AECOM (NYSE: ACM) (“AECOM”) and China City Construction Company Group (“CCCC”)
According to the MOU, AECOM, CCCC and Chun Wo are to work together to provide pre-development,pre-construction and construction management and/or general contracting services to investment group(s) composed by all or a combination of Beijing Huinong Capital Management Co., Ltd (“HNC”), CCCC and ChunWo (collectively known as the “Investment Parties”). It is understood that the Parties expect to gain opportunities throughout the US on projects with ownership interests of the Investment Parties(“Projects”).
If construction managements services for the Project are awarded to the Parties by the Investment Parties, the Parties will form a joint venture (“Joint Venture” or “JV”) under a written agreement between AECOM and Chun Wo (“JV Agreement(s)”) pursuant to which the parties will provide all construction management and/or general contracting services required to be provided to the Investment Parties pursuant to an RFP and/or an Agreement (“CMA”).
The JV Agreement(s) will include provision that, on a project-by-project basis, the Parties will receive a fee for their services from all fees actually paid by the Investment Parties, and shall be responsible for all liabilities and losses incurred by the Joint Venture, in direct proportion to the agreed ownership percentage split between the parties for the specific project.
Mr.Dominic Pang,Co-Chairman of Chun Wo, said,
“AECOM is a well-known world-class professional services provider. We are pleased to collaborate with AECOM and CCCC in this strategic cooperation with an aim to further penetrate the US market.With our strong shareholder support and combined expertise from relevant business partners, we are confident that this relationship can successfully advance our expansion in the overseas markets.Looking ahead, we intend to continue to actively develop business in China and further explore potential overseas development opportunities especially in the US and UK markets,to achieve the best returns for our shareholders.”
Mr.Yu Lian,Chairman of CCCC, said, “The MOU cooperation will bring us tremendous opportunities for future growth. We are confident that there is ample room for development under the ‘One Belt, One Road’ development policy. Mr. Dan McQuade, Group President, Construction Services at AECOM, said,“AECOM is excited about this collaboration with Chun Wo and CCCC which will continue to grow our global integrated services offering to our clients’
Photo caption Mr. Dominic Pang, Co-Chairman of Chun Wo (left), Mr. Yu Lian,Chairman of CCCC (middle) and Mr. Dan McQuade, Group President, Construction Services at AECOM (right) at the signing ceremony.
Chun Wo Enters into Strategic Relationship With AECOM & CCCC To Tap US Market.