3.2 WTG Supply and Service Agreements

RISK ANALYSIS

Goal:

Secure best supply and service contracts for client considering cost, interface and risk mitigation.

Risks:

  • Hidden costs spread between the supply and service agreements
  • Delays leading to liquated damages from OEM,
  • Cost overruns

Forte’s Risk Mitigation:

  1. Best-in-Class tender documentation and thorough OEM screening,
  2. Procurement team with experience of negotiating and administering WTG contracts.
  3. Team members with extensive OEM working experience on supply and service sides
ARR FCR Cover Photo
3.2 WTG Proc-Pic2

√ Best-in-class Tender Documentation 

√ Full wind farm life cycle & OEM experience

WORK PACKAGE EXECUTION

BACKGROUND

WTG contracts need careful attention to ensure all technical issues, interfaces and commercial aspects are correctly prepared. A poor contract risks delays, cost overruns and loss of production revenue.

CLIENT PROCUREMENT & KICK-OFF

1) Sign a) multiple work package (“EPC Manager”) contract or b) single-work package contract with Forte.

2) Issue all required project site information and employer requirements/preferences

3) Issue Forte with Work Package Instruction to Proceed

SCOPE

1. Contractor Screening

Identify suitable companies to tender, based on track record, credit rating, geographical location etc. See Link.

 

2. Tender Package Preparation

The tender document package will consist of

  • A Request for Proposal (RFP) document which is an official invitation for selected construction contractors to prepare offers for the contract.
  • Employers Requirements document including technical and commercial specifications
  • Issued for Tender (IFT) design documents (drawings and reports) and specifications
  • Bill of Quantities (BOQ) which is an itemised list of all construction items to be completed in full by the contractor for like by like comparison with other offers at evaluation stage

 

3. Tender Management

  • This includes Tender Issue, Offers Review, clarifications and preferred bidder recommendation.
  • A detailed and iterative process to clarify details and conditions of all offers received.
  • Preferred Bidder recommendation

 

4. Negotiations with preferred bidder

  • Forte will lead the technical negotiations with emphasis on closing remaining open technical and commercial specifications.

 

5. Finalising of Contract Documents (Design Updates, and Permitting, etc.)

  • Review and approval of supplementary design documentation,
  • Monitoring of permitting and certification procedure
  • Support with finalisation of contract documents for signing.

Note: Forte will act as technical lead in this instance under the instruction of the client. In additional to technical issues, Forte can also provide assistance based on past experience with regard to proposed commercial and legal conditions.

 

6. Recommendation for Contract Signature and NTP

  • When all documents are present, correct and agreed by both parties the contract can be signed by the client.
  • It should be noted that start of works may be deferred from signing date to a later target date which will be defined in the contract and confirmed by the client via a Notice to Proceed (NTP) issued to the Contractor.

TYPICAL TIMELINE (8-WTG Project)

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DELIVERABLES

  • Invitation for Tender (ITT) documents (see listing in “Forte Scope” for details)
  • Tender Management and Evaluation Report
  • Minutes of Meetings and/or Task Lists from Negotiation Meetings
  • Updated documents to advance negotiations and any discussed potential optimisations
  • Preparation/Review of the finalised contract documents for signing

√ Result: Strong technical support to facilitate well negotiated WTG Agreements

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