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P17152 Managing EPC Contracts in the International Power Industry
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Managing EPC Contracts in the International Power Industry

6 – 7 September 2018 | Mandarin Orchard Hotel, Singapore

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TEAM SAVINGS: REGISTER 2 DELEGATES & THE 3RD COMES FREE!
SILE ACCREDITATION – 6 PUBLIC CPD POINTS

overview

For Hydrocarbons, Nuclear and Renewables including Wind, Tidal and Solar

 On completion of the course the participants will:

  • Become familiar with the importance of ‘scoping’ an EPC project correctly both from the client/end user perspective and the contractor regardless of particular power generation sector
  • Understand the difference between EPC; EPCM and ‘Multi-Prime’ approaches
  • Grasp the key elements and features of a ‘split’ EPC contract
  • Have awareness of the key features and contractual provisions of an EPC contract
  • Have a greater understanding of the dynamic nature of contractual provisions and some of the consequences that arise as a result of them within the commercial world
  • Grasp the fundamentally important aspects of managing and allocating risk in an EPC contract
  • Be competent in supplier selection and evaluation
  • Understand the importance of project change orders and how to efficiently manage change regardless of power sector
  • Be competent in managing critical interfaces in power projects such as access to grid; fuel specifications and the commissioning regime
  • Understand the best practices in avoiding and/or managing claims within EPC contracts and finance documents to facilitate funding of project specific transactions

 Who Should Attend

  • Anyone responsible for EPC projects
    • CEOs, CXOs, Directors, Heads of Departments, Managers of: Commercial
    • General Counsel and Legal Department
    • Contract Management and Administration
    • Project Finance and Finance
    • Procurement
    • Operations and Facilities Management
    • Planning
    • Investment/Funding
    • Project Development
    • Construction/Engineering
    • Government Agencies

Testimonial

“The trainer was engaging and examples provided were interesting.”
– Project Manager, Intergraph

“Good discussion with instructor and group activities were a nice way to get interactive.”
– Business Development Consultant, Hexagon

“Well presented, good material and the course was very interesting.”
– Project Administration and Monitoring Dept. Head, PT. MRT Jakarta

“Topics are very interesting; the speaker spoke clearly, well organized and easily understand his lessons.”
– Accountant, Department of Energy

“I like how the story telling was in line with the context, speaker provides simple explanations and examples and his presentation and communication skills are good.”
– Business Development Manager, Glow Energy Co. Ltd

trainer

Christopher Lennon MBA, LLB, DipICArb, FCIArb, AIPN An Introduction to Shipping

Christopher Lennon MBA, LLB, DipICArb, FCIArb, AIPN

Director, Stone Falcon Corporate & Legal Consulting Ltd

Agenda

TOPIC 1: SCOPING EPC PROJECTS

  • Choice of power plant – nuclear; coal; alternative (wind; tidal; solar)
  • Getting the focus right – what is included and what is excluded – (for example – commissioning – or simply delivery of an operational facility?)
  • Checking scope against the project business case
  • Considering resource requirements
  • The importance of effective ‘trade-off’ decision making processes and identifying opportunity cost

Case Study

TOPIC 2: EPC; EPCM AND ‘MULTI-PRIME’ – CHOOSING THE RIGHT PROJECT DELIVERY MECHANISM:

  • Single point ownership – ramifications – advantages and disadvantages
  • Time constraints
  • The fixed price basis – advantages and disadvantages
  • The EPCM model
  • The ‘Multi-Prime’ approach to energy contracting

TOPIC 3: ‘SPLIT’ EPC’S:

  • The ‘Onshore and the Offshore’ ‘split’
  • Key reasons for ‘splitting’ and EPC Contract
  • The WAG (Wrap Around Guarantee) – key features
  • Ensuring a ‘gap free’ project
  • Liability and Liquidated Damage Clauses in a split EPC
  • Preventing ‘Horizontal Defences’
  • Exclusion provisions preventing ‘capping’ of liability or prohibition of consequential loss claims
  • Securing a performance bond from the Guarantor
  • Liabilities and limitation thereof of the Guarantor

Case Study

TOPIC 4: CONTRACTUAL PROVISIONS OF CENTRAL IMPORTANCE

  • Governing Law
  • Establishing the rights; duties and obligations of the parties to the contract
  • Provisions relating to risk and performance
  • EOT (Extension of Time) provisions and ‘Qualifying’ EOT’s
  • Warranties and guarantees
  • Termination clauses
  • Suspension provisions
  • Damages – LDC’s
  • Renegotiation clauses and review mechanisms
  • Price escalation clauses
  • Consequential loss exclusion clauses
  • Dealing with breach of contract
  • Assignment and novation of contract
  • Force Majeure provisions
  • Intellectual property provisions
  • Time bar and prescriptive (limitation) periods
  • Drafting the dispute resolution clause

TOPIC 5: CLAUSES FOR TECHNICAL AND INTERFACE ISSUES

  • The variable interface between the different parties to the power contract – the long-term relationship perspective of the project company; the government and the System Operator vs. the short-term perspective of the EPC Contractor – managing this crucial complex dynamic
  • Managing the grid access interface – a key issue for project completion and a potential source of dispute
  • The commissioning and testing interface – ensuring consistency and compatability between EPC contractual specifications and the PPA – an important concern for financiers
  • The fuel specification issue – ensuring consistency between EPC contractual provisions, PPA and/or tolling arrangements
  • Establishing/re-establishing constructive engagement with stakeholder groupings
  • Monitoring and control mechanisms – the guardians of the project interfaces?
  • Ownership; accountability and reporting structures – the source of the most crucially important interfaces for project success
  • Dealing with local content and Corporate Social Responsibilities (CSR)

TOPIC 6: RISK ALLOCATION AND MITIGATION STRATEGIES IN EPC CONTRACTS

  • Risk identification – the essential starting point
  • The 5 ‘overarching risk strategies’ ensuring correct risk allocation amongst stakeholders
  • Understanding the ‘risk profile’ during the project lifecycle
  • Risk; complexity and the likelihood of disputes
  • Identifying and analysing potential causes of disputes and claims – a key element in mitigation
  • Applying mitigation instruments – LDC’s (cost overruns; delay; start up and testing issues, etc.); Performance Bond (Contractor payment default); warranties (defects); contingency fund allocations (force majeure; + all of the abovementioned); Insurance (force majeure and delay)

TOPIC 7: CASE STUDIES AND CLASS EXERCISE: EPC CONTRACTS FOR WIND, SOLAR AND FOSSIL FUEL POWER PROJECTS

  • Specific clauses relevant to each sector
  • What are the main differences to note?
  • How does risk vary from across project types?
  • Relevant KPIs for each sector

TOPIC 8: SUPPLIER SELECTION

  • What is meant by ‘supplier selection?’
  • Selecting new suppliers
  • Consequences of non – performance by suppliers
  • ‘Qualifying’ new suppliers
  • A suggested process for ‘screening’ new potential suppliers
  • Key parameters of supplier selection
  • Some disadvantages of the supplier selection process
  • Creating an ‘approved vendor’ base
  • Key issues in evaluating suppliers
  • Case Study / Class exercise: Negotiating key clauses with suppliers

TOPIC 9: MANAGING CHANGE ORDERS

  • Change orders and the Project Scope
  • Understanding the reasoning behind a change order – is it applicable or appropriate?
  • The 3 common reasons for change orders – client specification changes; poor ‘scoping (errors and omissions);’ changes in the environment
  • Establishing the audit trail
  • The importance of Price Escalation clauses
  • Change orders and contractual breach – a significant issue?
  • Change orders and Liquidated Damage Clauses (LDC’s) – a direct relationship?
  • Change orders and Force Majeure
  • Case Study

TOPIC 10: AVOIDING AND MANAGING CLAIMS

  • Managing project delays
  • Common claims and their causes
  • Best practices for avoiding and managing claims and disputes
  • Navigating the disputes process

when & where

06 - 07 Sep 2018

Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442

Contact Person: Tan Ai Li
Email: aili.tan@meritushotels.com
Website: www.meritushotels.com

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