Project Delivery - Electric Utilities

Transcription

1 Project Delivery - Electric Utilities

2 Complex Project Delivery Traditional DBB approach changing for our utility clients Execution of large complex projects Alternate project delivery models EPC (Engineering, Procurement, and Construction) EPCM (Engineering, Procurement, and Construction Management) PgM (Program Management)

3 Complex Project Delivery EPC (Engineering, Procurement, and Construction) Contractor provides all services, including management Risk is weighted towards the Contractor Open Book EPC option EPCM (Engineering, Procurement, and Construction Management) Major subcontractors are contracted to the Owner Minor subcontractors and suppliers contracted to Contractor Cost risk is weighted towards the Owner PgM (Program Management) PgM provides administration and management services All contracts are with owner Risk is almost exclusively with the Owner

4 Complex Project Delivery

5 Major Program Life Cycle Real Estate Acquisition Public Involvement Energization Labor Agreements Minor Procurement Budget Compliance Performance Specs Cost/Schedule Control Audit Management Scope Development 30% Design Construction Execution Close-Out Permitting Support Contracting Strategy Quality Control Final As-Builts 10% Design Full Design Documents Budget Development Final Permits Master Schedule Major Const/Equip Procurement Construction/Outage Planning

6 Major Program Life Cycle Typical DBB Approach Real Estate Acquisition Public Involvement Energization Labor Agreements Minor Procurement Budget Compliance Performance Specs Cost/Schedule Control Audit Management Scope Development 30% Design Construction Execution Close-Out Permitting Support Contracting Strategy Quality Control Final As-Builts 10% Design Full Design Documents Budget Development Final Permits Master Schedule Major Const/Equip Construction/Outage Planning Procurement Design/Bid/Build

7 Major Program Life Cycle Typical EPC Approach Real Estate Acquisition Public Involvement Energization Labor Agreements Minor Procurement Budget Compliance Performance Specs Cost/Schedule Control Audit Management Scope Development 30% Design Construction Execution Close-Out Permitting Support Contracting Strategy Quality Control Final As-Builts 10% Design Full Design Documents Budget Development Final Permits Master Schedule Major Const/Equip Construction/Outage Planning Procurement Engineer/Procure/ Construct (EPC)

8 Major Program Life Cycle Program Management Approach Real Estate Acquisition Public Involvement Energization Labor Agreements Minor Procurement Budget Compliance Performance Specs Cost/Schedule Control Audit Management Scope Development 30% Design Construction Execution Close-Out Permitting Support Contracting Strategy Quality Control Final As-Builts 10% Design Full Design Documents Budget Development Final Permits Master Schedule Major Const/Equip Construction/Outage Planning Procurement Program Management

9 Program Management Is

10 Project Controls Management Cost Control Project Schedule Document Control Contract Management Safety Coordination Develop Safety Programs Monitor Safety Performance Engineering Services Line Design Substation Design Prepare D/B Bid Documents Permitting Review D/B Contracted: Geotech Engineer, Surveying Environmental Studies and Permitting State and Federal Agency Interface Cultural Resource Surveys Permit Application Preparation Routing Data, Acquisition and Analysis Threatened / Endangered Species Surveys IS Platform Data Management Right-of-Way Management Property Identification Condemnation Support Easement Acquisition Line List Preparation Record Searches Environmental Compliance Services Hazardous Material Management Stormwater Wetlands T/E Species Permit Management Cultural Resources Restoration Foresters / Arborists Procurement RFP Preparation Technical Specification Development Bid Evaluation Expediting Contract Administration Construction Management Contractor Management Scheduling Invoice Management Construction Line Outage Coordination Construction Inspection Community Relations Public Notifications Public Relations Local Government Relations Management Media Management

11 Integrated Team

12 Assist Manage Owner Only Middletown- Norwalk Project NUSCO Energizing the Future FirstEnergy New England East-West Solution Program NUSCO Maine Power Reliability Program CMP Susquehanna -Roseland Project, PPL Electric Susquehanna -Roseland Project PSE&G Sunrise Powerlink Project SDG&E Tehachapi Renewable Transmission Project, SCE $1 Billion $1 Billion $1.5 Billion $1.4 Billion $500 Million $750 Million $1.9 Billion $2.5 Billion 75 BMcD FTEs 75 BMcD FTEs 110 BMcD FTEs 85 BMcD FTEs 15 BMcD FTEs 15 BMcD FTEs 75 BMcD FTEs 55 BMcD FTEs ISD 2008 ISD 2020 ISD 2017 ISD 2015 ISD 2015 ISD 2015 ISD 2012 ISD 2015 Ratio of $/FTE $13.3 Million $13.3 Million $13.6 Million $16.4 Million $33.3 Million $50 Million $25.3 Million $45.5 Million Engineering System Planning Real Estate Procurement Construction Management Project Controls Safety Project Management Environmental Permit Environmental Compliance Siting & Routing Community Relations

13 OUR PROGRAM MANAGEMENT TOOLS T H E K E YS TO O U R S U C C E S S

14 Project Controls Platforms Unifier - Oracle P6 Oracle Primavera Portfolio Management Oracle Risk Analysis Oracle BMcD NoTouch Reporting BMcD OneTouchPM BMcD OneTouchMobile Microsoft SharePoint

15 Effective Risk Management

16 Potential Project Risks Subsurface, geographic or weather conditions Inadequate cost and schedule management Poor safety procedures, lack of safety training Defective material, design errors Failure to meet public meeting commitments Violation of environmental laws

17 Risk Management Identification Project manager centric Acting in interest of stakeholders Achieving successful profitable project Response Five Step Risk Management Plan Analysis Project Risk Management Manage project contingency Develop consistent periodic review Evaluate uncertainties in Project (Project Risk) Opportunities Threats Mitigate the uncertainties to achieve favorable results for the project. Input to the Estimating Process (Contingency) Evaluation Prioritization 17

18 Partnerships Utilize existing contracts Align incentives and penalties with Owner s goal Strong business relationships Known expectations Know processes and procedures Established Owner Relationships to Build Business Partners

19 Electric Utility Project Delivery EPC EPCM PgM D/B/B Cost* High Average Low Average Risk to Contractor Schedule Performance Owner Involvement High Moderate Low Low Excellent Above Average Above Average Below Average Low Moderate Fairly High High *Contracted amounts, not including potential cost overruns during construction