Applied Optoelectronics entered a Design-Build Agreement with LCC3 Solution to construct its OMD 3 (FAB4) facility in Houston, including 195,591 square feet of ISO Class 6 cleanroom space, office, and logistics areas. The $94.1 million contract covers design, engineering, procurement, construction, testing, and commissioning, with monthly progress payments and 10% retainage released at final completion. The agreement includes liquidated damages for delays capped at $4.9 million and potential incentives of up to $6.0 million for schedule and up to $9.8 million for performance. Targeted substantial completion is Jan 10, 2027.
Agreement details:
- Agreement type: Design-build contract for OMD 3 (FAB4) cleanroom and related facilities
- Counterparty: LCC3 Solution
- Signed / Effective: Jun 25 2026 / same
- Duration / Termination: Through Jan 10 2027 (targeted substantial completion)
- Reason: Expand manufacturing capacity with new cleanroom facility
Original SEC Filing:
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.