|I. MANAGING PROJECT DEVELOPMENT AND CONFIGURATION
Energy asset owners contemplating an expansion, acquisition or construction of a capital project may optimize the
sequence and substance of project development decisions leading to a particular project configuration when
supported by a logic driven process of convergence.
Our clients routinely avoid unnecessarily disrupted and repeated efforts during development and delivery of projects
because each project decision is informed in advance with multi-disciplinary analyses and recommendations
pertinent to the issues at hand.
For example, third party financing is generally accompanied with certain assignments, surety and indemnity
requirements and other obligations materially affecting project costs, risk allocation and the relationships among
project participants. We avoid costly re-bidding and post-agreement negotiations by establishing the requirements of
preferred financing facilities and including them in project contracts and bid packages.
Additionally, in our experience project agreements should be tailored to a particular project configuration in order to
maximize project delivery efficiencies. We encourage owners to substantially develop internal constraints and
preferences relating to project siting, commercial content, process and physical configurations before deciding on a
preferred project delivery system, i.e. EPC, multiple primes, or third party build-operate-transfer, among others.
A logic driven convergence upon a project delivery system that is tailored to an owner's needs and exploits the
competencies of project participants saves money and avoids unnecessary friction and other losses resulting from
the misalignment of expectations during project performance. The process is depicted in its most general terms
An Owner may acquire a project that has been developed to some degree by others. EPDI drills down
into the fundamentals underlying project development and justification enabling an Owner to more fully
understand project related risks in advance of entering into contracts and other commitments.
Representative subject matter of such investigation includes:
(a) Real Property Transfers, Rights-of Way, Liens and Encumbrances.
(b) Discharge Permitting and Environmental Compliance Issues.
(c) Subterranean Site Conditions, Hazmats, Soil Mechanics and Load Bearing Suitability.
(d) Requirements of Power Sales, Fuel Purchase, and Other Utility Agreements.
(e) Lending Facilities Agreements Terms and Conditions.
(f) Capital Expense Estimates, Mass and Energy Balances.
(g) Transnational and Inland Freight Logistics Issues.
(h) Evaluation of Existing Facilities, Grey Market Equip., Documentation.
(i) Qualification of Contractors and Suppliers
III. Coordinated Proposal Process.
(a) Comprehensive RFP Content Minimizes Divergence of Bidders.
(1) Form includes Lump Sum Prices, Rates for Labor and Units of Construction.
(2) Complete Form of Contract.
(3) Detailed Scope of Work Consistent with Contract Allocations.
(4) Illustrative Drawings, Specifications, Schedules, Submittals.
(5) Detailed Forms of Change Order, Payment Request, Lien Waiver
(6) Performance Guarantees and Schedule Constraints.
(b) Coordinated Clarifications and Uniform Responses to Bidders Queries.
(c) Integrated Adjudication of Technical and Commercial Content of Bids.
(d) Conditioning Successful Bidder to Tailored Terms and Conditions.
(e) Detailed Contract Negotiations.
(2) Cost and Schedule.
(3) Scope of Work.
(4) Approved Subs and Suppliers.
|IV. PROPOSAL SOLICITATION AND EVALUATION
|IV. Initial Compliance and Documentation.
(a) Staged Notices to Proceed and Payment.
(b) Insurances and Bonding.
(c) Cash Flow Coordination and Progress Payment Certification.
(d) Contractor Submittals.
(e) Key Personnel and Project Resourcing.
(f) Subcontractor and Supplier Qualification and Conformance.
(1) Continuity of Critical Terms and Conditions.V. Performance Issues.
(2) Technical and Commercial Track Record.
(3) Guaranties and Warranties.
(4) Clarity of Scope and Responsibilities.
(a) Memorialization of Events and Preservation of Rights and Remedies.
(b) Combined Action Adversity Avoidance and Mitigation Tactics.
(1) Insured Losses.
(2) Anticipatory Breach.
(3) Resolution of Claims and Disputes
(3) Third Party Cover Performance.
(4) Spotting the Best “Story” and Sticking To It.
(5) Spotting Adversary’s Weakness and Exploiting It.
(c) Contract Amendments Arising From Unplanned Events and Circumstances.
(d) Linkage and Set-off Between Otherwise Unrelated Situations.
(e) Litigation Support
|V. CONTRACT AWARD AND PERFORMANCE
|VI. Project Completion, Commercial Operations and Warranty Period.
(a) Punchlist and Release of Retainage.VII. Facility Modifications.
(b) Settlement and Release of Claims.
(c) Verify Complete and Accurate As-built Drawings, Manuals, Systems Manuals, Supplier Data.
(d) Transfer of Documentation and Administration of Operations, Maintenance and Warranties.
(e) O&M Agreement.
(f) Long Term Service Agreement.
(g) Technical Services and Supply Agreements.
(a) Coordinate with Supplier warranties and after market resources.VIII. Facilities Shutdown, Long Term Storage and Transfer.
(b) Verify environmental permits and regulations violations.
|VI. PROJECT COMPLETION AND TRANSFER
|Multidisciplinary Renewable Energy and Power
Generation Project Management, Recovery and
Troubleshooting Services Catering to Asset
Owners and Developers Around the World
|THE RANGE OF EPDI SERVICES
|ENERGY PROJECT DELIVERY INC.
NORTH AMERICAN OFFICES:
300 Colonial Center Parkway, Suite 100
Roswell, Georgia 30076 USA
Tel: (01) 770-992-2255
Fax: (01) 678-353-3211
MEDITERRANEAN REGIONAL OFFICES:
170 Androutsou Street
18535 Piraeus, Greece
Tel: (30) 210-413-4480
Fax: (30) 210-413-4481
|Combining Common Sense With
Deep Technical, Commercial and Operational Knowledge
and Professional Experience
|II. IDENTIFYING RISK WITH DUE DILIGENCE INVESTIGATIONS
Having established the desired project configuration, siting and cast of participants, the forms and
content of agreements are tailored to ensure the most efficient allocation of risk and responsibility
among Owner, suppliers, contractors, and service providers, based on the participants' respective
competencies, resources, experience and cost to the project. EPDI is experienced in the drafting and
negotiation of coordinated project agreements complete with detailed technical and commercial
exhibits ensuring clarity of intent and unambiguous assignment of responsibility to the parties
including, among others, the following:
(a) Continuity of Responsibilities and Work Scope Among Owner, Prime and Subs.
(b) Risk Allocation, Insurances and Warranties.
(c) Continuity of Terms with Overarching Agreements, Governing Regulations.
(d) Liquidated Damages for Delay, Performance Shortfalls.
(e) Indemnities and Limits of Liability.
(f) Suspension, Events of Default and Terminations, Limited Remedies.
(g) Dispute Resolution, Choice of Law.
(h) Change Orders.
(i) Exhibits, Attachments and Forms.
|III. PROJECT DELIVERY CONTRACT ARCHITECTURE
Various methods of project delivery varying in Owner flexibility, involvement and responsibility are
schematically identified below.