 The number one overall concern in any project of any size or scale is risk. As a project progresses through the various steps from inception through realization, the number and magnitude of risks associated with or encountered by the business grow and multiply according to scale of the project. EVALUATING EQUIPMENT AND SERVICES Evaluating equipment and services is usually within the context of feasibility assessment, or project planning. Risk is minimal and limited to the amount of time and perhaps travel expense invested in this type of activity. As projects grow and commitments are made, risk grows. What we are concerned about is risking capital, and if the opportunity is real, risking the loss of not just the invested capital, but also some or all of the promised return. The worst of all possible nightmares is a scenario where the project causes a problem outside the scope of the project as envisioned, requiring an unplanned, unbudgeted expenditure. Not only should equipment and services be evaluated, but their source of supply as well. Conducting due diligence on one or more 8 ACQUIRING AND EVALUATING EQUIPMENT AND SERVICES suppliers varies by level of effort depending on several factors such as how long the prospective supplier has been in business, their size, and their capability to produce and deliver the products and services required by the project at hand. A new supplier that's been actively supplying products or services in the marketplace for several years will require less effort than a start-up. A start-up with an innovative, new product may require more effort; certainly it's likely the effort will be different. Well-known or start-up, any situation involving claims of significant new technology should be taken with a grain of salt until all potential material risks have been uncovered, exam- ined, evaluated, and quantified. Due diligence is most effective and efficient when it is conducted in a way that it becomes a benchmark for acceptance of equip- ment and services. Conducted properly, there 