3.4 Civil and Electrical Works Agreements
RISK ANALYSIS
Goal:
Secure best construction contracts for client considering cost, planning, interfaces and risks.
Risks:
- Contractor Bankruptcy,
- Delays leading to liquated damages form OEM,
- Cost Overruns
Forte’s Risk Mitigation:
- Best in Class design and tender documentation,
- thorough screening of potential contractors (past performance and credit rating),
- procurement team with experience of negotiating and administering BOP contracts.
WORK PACKAGE EXECUTION
BACKGROUND
Civil and Electrical works 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.
To best ensure the procurement process is efficient and does not block the wind farm development process procurement strategy needs to be carefully considered and tender and contract documents need to be comprehensive and detailed.
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
FORTE SCOPE
1. Tender Package Preparation (design packages as input)
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
2. Contractor Screening
Identify suitable companies to tender, based on track record, credit rating, geographical location etc.
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 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)
DELIVERABLES
1) Memos and draft reports
As needed to update the client on the progress of the studies as they are being compiled.
2) Final report
The final report will provide a comprehensive summary of all investigations carried out and will provide concluding expert opinion on which WTG manufacturers and what specific models should be included in the WTG tenders.