Global Power Equipment Group Inc. (OTCMKTS:GLPW) Files An 8-K Other Events
Item 8.01 Other Events.

On October27, 2017, Global Power Equipment Group Inc. (the “Company”) issued a press release announcing that its wholly-owned subsidiary, Williams Industrial Services Group, LLC, through its subsidiary Williams Plant Services, LLC (“Williams”), formed a joint venture with Bechtel Power Corporation (“Bechtel”) to establish Richmond County Constructors, LLC (“RCC”). Williams owns a 25% interest in the profits and losses of RCC.

The Company also announced that effective October23, 2017, RCC was awarded a contract (the “Construction Subcontract”) to serve as construction subcontractor to Bechtel, the prime construction contractor for the Plant Vogtle Units 3 and 4 nuclear expansion project in Georgia. RCC will employ construction craft labor for the project. The Company estimates that the Construction Subcontract will generate revenue for RCC of approximately $2 billion over the Construction Subcontract’s expected four-year term.

The payment structure under the Construction Subcontract provides for cost reimbursement on craft labor, a base fee and at-risk fees which are subject to adjustment based on RCC’s performance against cost and schedule targets. Williams and Bechtel will both provide supervision for the construction craft labor, and may provide other support services under contract to RCC. Williams has also contracted with RCC to provide payroll services.

The margins earned on the base fee payable under the Construction Subcontract are at a discount to the allowed margins for the prime contractor and are lower than typical margins earned by Williams. The at-risk fee payable to RCC may become payable based on meeting certain cost and time-schedule targets, but will only be payable at the end of the term of the Construction Subcontract. Revenue from the support services will be paid as earned and is expected to result in margins typically earned by Williams.

The Construction Subcontract may be terminated by Bechtel at any time for convenience, provided that Bechtel will be required to pay amounts related to work performed prior to the termination and certain termination-related costs. In certain circumstances Bechtel also has the right to reduce Williams’ interest in the profits and losses of RCC to 15%.

A copy of the press release is attached as Exhibit99.1 to this Current Report on Form8-K and is incorporated by reference into this Item 8.01.

Item 9.01 Financial Statements and Exhibits.