Академический Документы
Профессиональный Документы
Культура Документы
Time
Nepal
Total estimated hydropower potential = 83,000 MW Economic potential = 43000 MW Total installed capacity = 635 MW Only 1.48% of the economic potential is installed Covers 93% of total energy production 2% contribution to GDP , Backbone for Nepal Electricity export /import, Maximum 150 MW
Hydropower : Nepal
Load Forecast
Institutional Set Up
Main governmental bodies looking after the hydropower sector: Ministry of Energy (MOE)
Divisions
Department
Law Division
Water and Energy Commission Secretariat (WECS) Nepal Electricity Authority (NEA) Electricity Tariff Fixation Commission (ETFC)
Functions:
WECS: Planning DoED: A government department under MOE responsible for licensing, facilitation, promotion, motivation NEA: Public utility owned by government of Nepal responsible for generation, transmission and distribution of electricity ETFC: A government appointed commission for tariff setting
Construction Related
Physical
Risks in Nepal
Financial and Economical Contractual and Legal
Inflation Funding
Performance Related
WHAT IS EPC/TURNKEY ?
Owner
Client will be looking for the following key terms (requirements):
1. 2. 3. 4. 5. A fixed complete date, A fixed completion price, No or limited technology risk, Performance guarantees, Liquidated damages for both delay and performance, 6. Security from the contractor and/or its parent, 7. Large caps on liability (ideally, there would be no caps on liability, however, given the nature of EPC contracting and the risks to the contractors involved there are almost always caps on liability), and 8. Restrictions on the ability of the contractor to claim extensions of time and additional costs
EPC Contractor
Engineering
Procurement
construction
Supplier
Sub-Contractor
An EPC contract delivers all of these requirements in one integrated contract. These provisions are crucial to ensuring the bankability or financeability of a project
Interdependence of activities Phase overlaps Work fragmentation Uncertainty in accurate prediction of desired outcomes Complex organizational structure
In the engineering and construction industry, larger firms usually use matrix organization for the management of projects.
Phase overlaps of E,P and C increase the risk of project overruns in schedule and cost due to lack of project information and frequent changes, especially those attributed to external factors
EPC PROCESS AND POTENTIAL INTERFERENCES BETWEEN EPC CONTRACTOR AND CLIENTS/CONSULTANTS
Development Phase Bid Phase EPC Contractor advance the design further into basic or preliminary but incomplete design Execution Phase At Execution: The price is fixed, but the design is not Possible owner/consultant interference with the EPC contractor Clients requirement Design Vs. Scope changes Design Approval Schedule Approvals Suppliers/ Fabricators approvals Owners Supplied Equipments Spare parts Issues Interference during Commissioning and Testing Phase EPC Contractor to meet the employers requirements
Employer with his Consultant to express the requirements in a form of Design Brief
Award
The design is partially prepared by the consultant and transferred to the EPC Contractor
Interface Activities: Practice / Promulgate / Manage Effective Communication Provide/Obtain Information Coordinate/Manage Work Activities Lead/Guide/Direct Project Team
Procurement
Project Controls
FOCUS ON PROCUREMENT
The critical importance of procurement is due to following facts:
1.
2. 3. 4. 5.
It is a connecting function between engineering and construction. Procured materials are the foundation of constructed facilities
Material costs represent a major portion of total costs in EPC projects
It is highly dependent on external companies, who are the suppliers and subcontractors
Procurement needs more communication and negotiation with these external parties
The control is not as strong as in the case of engineering and construction, especially in outsourcing and purchasing long lead-time equipment
Unlike the manufacturing industry, neither the major equipment suppliers nor the client keeps buffer inventory for the project The capital equipment is very costly and requires long lead-time to manufacture Suppliers and prime contractors separately use time buffers to protect themselves from uncertainty due to unforeseen circumstances Successful procurement management can lead to superior performance in overall project cost and delivery.
6.
7. 8.
9.
Security
Variations Defect Liabilities Intellectual Property
Error in Design
Differing Site Condition Additional Drawings and Engineers Instruction as to Methods of Working Claim Concerning the Validity of a Variation Order Timely Review of Shop Drawings, Payment Requests and Change Notice Proposals Site Access Timely Performance Constructive Acceleration Increased Difficulty of Performance Escalation of Material Cost Additional Works Claim for Adjustment of Preliminaries Delay in Payment Force Majeure Claim for Unreasonable Liquidated Damages
Risks
Conflicts
Claims
(1) Delay claim, (2) Scope-ofwork claim, (3) Acceleration claim, and (4) Changingsite-condition claim
2. Claim Notification
6. Claim Negotiation
3. Claim Examination
5. Claim Presentation
4. Claim Documentation
Lack of awareness of site staff to detect a claim Insufficient skilled personnel for detecting a claim Inaccessibility of documents used for identifying a claim Unclear procedures in claim identification
Inaccessibility of documents needed for attaching along with notice Unclear procedures in notice preparation Unclear lines of responsibility as to who should prepare the notice Queries back from the other parties due to notice ambiguity
Unavailability of records used to analyze and estimate the potential recovery Unclear lines of responsibility as who should evaluate the amount of recovery Lack of legal/contract to establish the base on which the claim stands Unclear procedures for claim examination
Some Information /instruction is not kept in writing Oral instruction by owner Inaccessibility of documents when required Inaccurate recorded information
Inaccessibility of relevant documents to submit along with the claim Insufficient staff skilled in preparing a claim submission Unclear responsible person to prepare full report of claim presentation Unclear procedures in preparation of claim presentation
Conflicts arising during negotiation Poor negotiation skills Insufficient evidence to convince other parties Adversarial relationship with other parties Difficult to settle without any litigation or arbitration
TQM
tools Quality Deviation Cost Overruns
Revisions
Indirect Effects
1.
Proper communication and education program Continuing professional development Integration of educational courses
Re-skilling employees
1.
2.
Network of Solutions
Conflict due to differentiation Conflict due to task interdependency Conflict due to communication obstacle Conflict due to tension Conflict due to personality traits Conflict due to differing values, interests and objectives
Primary Effect
Team working approach on a project helps avoid opportunistic behavior through promoting cooperation and establishing good relations
Types of Negotiation Skills Distributive Bargaining Win-Lose Exercise Assertiveness Mutual Gain Bargaining Open Communication Mutual Respect & Trust Negotiation focus on fulfilling the mutual interest of both parties Cooperativeness