Primavera and PurchasePro.com to Create E-Commerce Marketplace for Construction Industry; PrimeContract.com to Bring Together Construction Companies, Project Owners and Suppliers for Buying and Selling of Construction Materials, Business Supplies and Services

Business Wire, Sept 21, 1999

PHILADELPHIA--(BUSINESS WIRE)--Sept. 21, 1999--

Primavera Systems, Inc., the leading developer of integrated, scalable, project management software solutions, today announced that it has formed a strategic partnership with PurchasePro.com (NASDAQ:PPRO), a leading provider of online business-to-business procurement solutions, to create PrimeContract.com(TM), an e-commerce marketplace for construction companies, subcontractors, project owners and suppliers.

Subscribers to the site (www.primecontract.com) will be able to take advantage of the Internet to expedite their purchasing of construction materials, business supplies and services; streamline their sourcing of subcontractors required for project work; and efficiently review competitive bids and award project contracts.

The PrimeContract.com network will be powered by AEC Connect, PurchasePro.com's powerful Web-based search, bid, purchase/contract and payment technology.

AEC Connect will gather required planning and scheduling information from Primavera Project Planner(R) for the Enterprise (P3e(TM)), and exchange purchasing and procurement data, such as order, on-site delivery and material inspection dates, with Primavera's Expedition(R) for end-to-end project administration and contract management.

"The construction industry is ripe for e-commerce," commented Joel M. Koppelman, president of Primavera. "PrimeContract.com extends project management into the heart of purchasing and procurement of construction materials, components and services. In executing their well-crafted plans and schedules, contractors will be able to buyout the job more economically and make sure that everything arrives on-site in time. Additionally, contractors will have the ability to source globally, evaluate and propose alternatives and substitutes that meet performance specifications, lower their transaction costs, and eventually obtain lower prices by buying collectively. All of this means better, cheaper, and faster results for facility owners and operators."

Primavera's installed base of more than 250,000 users gives PurchasePro access to the largest engineering and construction firms in the world. Bringing together the disciplines of project management and construction purchasing is a natural combination, as 72% of construction project managers perform construction-related purchasing.(1)

Forrester Research projects that U.S. business trade on the Internet will explode from $43 billion in 1998 to $1.3 trillion in 2003.(2) With the total construction market in the U.S. reaching $652 billion in 1998(3), according to Engineering News Record, "we believe that construction-related e-commerce will mirror overall e-commerce trends," continued Koppelman.

PrimeContract.com will extend the efficiencies of electronic commerce to construction-project-related purchasing by connecting buyers and sellers of construction products and services nationwide. It will reduce the time and costs associated with procurement by finding the right suppliers, enabling online competitive bidding and improving the record-keeping associated with the purchasing process.

Buyers will be able to quickly and easily compare product offerings from different manufacturers, as well as solicit pricing and availability, putting buyers in a position to make the best purchasing decisions for their projects.

Construction managers, general contractors and project owners will also turn to PrimeContract.com to improve their subcontract bidding process. Construction companies can easily submit bid documents and specifications to solicit competitive bids for subcontracted work.

They can route RFQs/RFPs to approved contractors, or search for matching contractors according to attributes such as CSI (Construction Specifications Institute) classification, geographic location, specialty, minority status, licensing and bonding. Eligible contractors and suppliers are notified of pending project bids and may then respond electronically.

Their responses are automatically organized into bid summary spreadsheets for review and award.

Buyers can anticipate an immediate ROI from reduced costs associated with the processing of purchase orders, more competitive prices and overall supply-chain efficiencies. Sellers will find new opportunities to increase sales by expanding their customer base and effectively communicating their product line and pricing.

Construction companies and suppliers can subscribe to PrimeContract.com, enabling them to participate as both buyer and seller. For more information on PrimeContract.com, please call John Statts, Expedition business development director, at 610/949-6763, or email jstatts@primavera.com.

About Expedition

The Expedition product line offers complete project administration and contract management tools that address the demands of multiuser, multiproject, and multisite environments. Through its design review and submittal functionality, Expedition helps ensure all materials necessary for a project are designed, specified, ordered and delivered on time to avoid delays.