Building A World Of Difference Through MERAH PUTIH Jakarta, 25 Nov 2013|

BRIEFING DOCUMENT


Dale Lindberg
Vice President & Director
Power Generation Services
- Asia

Dale has spent his entire 40 year career with B&V.
Currently he resides in B&Vs Beijing office
overseeing our Services business in Asia. Dale has
been working in Asia for 30 years. Over the past 4
years he has had extensive experience with the
China Export Model.

Office Location
Beijing, Peoples Republic
of China

Education
B.Sc. Civil Engineering
VICEPRESIDENTANDDIRECTOR
POWERGENERATIONSERVICES ASIA DALELINDBERG
CHINAEXPORTMODEL
CHALLENGES/SOLUTIONS
2
5

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ChineseEPC contractorshaveinconsistentrecordsfor
thedeliveryofprojectsoutsideofChina
TypicalprojectdeliveryinsideChinaisnotEPC model
Ownersprojectteamimplementstheproject
management
Ownersheadquarterandprojectteamjointly
procureindividualequipmentwiththeassistance
fromthedesigninstitutewhodesignsthepower
plant
Afewlocalcivilanderectioncompaniesarehired
Aprofessionalcommissioninginstitutedoesthe
startup,commissioningandperformancetesting
Historically,Chinaexportprojectshavebeen
governmenttogovernmenttypeprojects.Now
includingIPPs
Thecultureandpracticeofprojectexecutioninside
ChinaisdifferentthanoutsideofChina
BACKGROUNDOFCHINA
EXPORTPROJECTS
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2
Aggressivepricing
FinancingsupportfromChina
EXIMBANK,SINOSURE andChinese
government(exportfinancing)
Promiseaggressiveprojectschedules
Todatenotdelivered
WillingtobringChineseconstruction
labortosite
Lesssensitivetocommercialterms
Aggressivesales/marketing
WillingnesstotakeOwnershiprole
COMPETITIVENESSOFCHINESEEPC
CONTRACTORSOUTSIDEOFCHINA
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3
Inconsistentinternationallevelofquality
ConformitywithownerscontractversusChina
standardpractices
Projectmanagementexperienceandhuman
resourcesforoverseasprojects
Projectcontrols cost,scheduleandrisk
managementprocedures(lackingCPM
planning)
Actualimplementationofinternationaland
localcodesandstandards
Managinginterfaceswithlocalconstruction
contractorsandlocalauthorities
EnglishCommunicationskills amajorhurdle
Safety,Health,Environmentperformance
EntryandworkpermitsforChineselabors
CHALLENGESFORCHINESEEPC
CONTRACTORSOUTSIDEOFCHINA
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4
BLACK&VEATCH
SOLUTIONFOR
CHINAEXPORT
5
AsOwnersEngineer,supporttheowner
withmanagementoftheChineseEPC
OwnersEngineershouldhave
significantexperienceandresourcesin
Chinaandshouldbegiventheauthority
tomanage
AsEP/EPC ContractortoprocureChinese
equipmentandmanageChinesepartners
andvendors
Black&Veatchbringsleadershipfor
overallprojectmanagement,quality
control,technicalcoordinationand
interfaceswiththeclientandlocal
constructioncontractors
WEHAVEUSEDTWOAPPROACHESTOASSIST
OWNERSADDRESSTHECHALLENGESOFUSING
CHINESECONTRACTORSANDEQUIPMENT
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6
BLACK&VEATCHCHINAEXPORTPROJECTS
Project Client Location Capacity(MW) Scope ServicePeriod
Banten Genting Indonesia 660 MW, Coal FullOE 2012 ongoing
Salalah IWPP Sembcorp Oman
Combined Cycle
430MW/15MIGD
PartialOE 20082012
Rabigh IPPProject ACWC SaudiArabia 2x660,Oil FullOE
02/2009
03/31/2013
Tiroda Thermal
Power
Adani Power
Maharashtra
PrivateLtd
India
3x660,PC,
Supercritical
Limitedscope
04/2009
ongoing
Tanjung Jati B Sumitomo Indonesia
2X660MW
EP
2009 2012
PTBABanjasari PTBukitAsam Indonesia Banjasari 2x100MW OE
07/2007 ongoing
BarcarenaPower
Plant
Vale(CVRD) Brazil 2x300,PC,60HZ Fullscope
1/2008
ongoing
PLN10KProgram PLN Java,Indonesia
Suralaya 1x600PC,
Paiton 1x660PC,
Rembang 2x300PC,
Adipala
Limitedscope 11/2007 2014
OyuTolgoiPower
Plant
Ivanhoe Mongolia 3x150,CFB Fullscope 04/2007 pending
MonteEsperanza
PowerPlant
Globeleq Panama 2x135,CFB,60HZ OE
3/2007
onhold
Cilacap S2P Java,Indonesia 2x300,PC Limitedscope 06/2004 12/2006
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BLACK&VEATCHOWNERSENGINEER
SERVICESFORCHINAEXPORT
PhaseIV
Project
Implementation
Engineeringand
designoversight
ProjectControls
(CPM Planning,
monitoring)
QA/QCmanagement
services
Construction
oversight
Commissioningand
startupoversight
EPC specification
Bidevaluation,
contractnegotiation
assistance,andEPC
contractorselection
Define
QualifiedVendors
ProjectControl
Reqm
Payment
Milestones
DesignBasis
Engineeringsupport
forfinancing,
permittingand
development/
reviewofkeyproject
contractdocuments
Siteselection
VisitstoChinese
powerplants,major
OEMsandshort
listedChineseEPC
contractors
Conceptualdesign
(performance
based),preliminary
projectcostestimate
andprojectschedule
Contractingstrategy,
technical
specification
PhaseIII
EPC Proposal
Solicitationand
Negotiations
PhaseII
Project
Development
Support
PhaseI
Project
Definition
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ManyoverseasprojectsrequireU.S./InternationalCodes
andStandards
ChineseDIs/Contractorshavelimitedornocapabilityto
designtointernationalstandards
Limitedcapabilityin:
Heatbalancesandperformancecalculations
Dynamicfoundationdesign
NFPA
Noiseplanning/modeling
Difficultcoordinatingwithvendorsandothercontractors
Effectivedrawingcontrolandmanagementsystemsarenot
usedbyDIs
ENGINEERINGOBSERVATIONS
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MustensurethatContractorunderstands
localmandatoryrequirements
Fire/explosionprotection,
environmental,health,safety
Expectthattheprojectwillbedesigned
primarilytoGB(ChinaNationalStandards)
Significantcostbenefitsandshorter
deliveryperiodsforequipment
RequireInternationalStandardsonly
wherecritical
AmericanASME,ANSIand
InternationalISO,IEE,IEEC
MaterialApplicationGuide
CODES&STANDARDS
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10
Kickoffmeeting(reviewofreqm andalignment)
Agreeonbasicdesignfirst
Reviewcriticaldrawings
Designliaisonmeetings
Limitdrawingreviewcycles
UseBeijingofficedesignreviewteam
Weeklycoordination
Actionitemlists
ENGINEERINGSOLUTIONS
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DonotuseCPM planning
Donotuseprogressmodel
Littleinterface/coordinationamongEPC
Donotplanforfloat
DonotuseLNTP
Missschedules
PROJECTCONTROLSOBSERVATIONS
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Black&VeatchguideEPC indevelopmentofCPM plan
Black&VeatchguideEPC indevelopmentofprogress
model
DonepriortoNTP
Black&VeatchinstructEPC onCPM analysis
Black&VeatchmonitorEPC monthlyprogressreport
andschedulestatus
Quicklyelevatecriticaldeviations
Review/discussscheduleinmonthlyprojectmeetings
PROJECTCONTROLSOLUTIONS
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Ensurequalified,toptierChinesevendorsareincludedin
theEPC Contract
Qualitycontroliscritical significanttimeneedstobe
spentinvendorshopstoverifyproperproceduresare
followed
EPC ContractRequirementsareoftennotfloweddownto
vendors
Obtainingtimelydesigninformationcanbedifficult
influencesoveralldesignschedule
Technicaladvisorcapabilityislimited
PROCUREMENTOBSERVATIONS
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EnsureprequalifiedvendorsinEPC contract
Black&Veatchhasdoneduediligenceon400Chinese
vendorsandprequalfied 180
Procurement/QCkickoffmeeting
LTP plan
Black&Veatchinspection
Surveillancereports
Resolveissuestimelyinshop
Deviationmanagement
Expediting
PROCUREMENTSOLUTIONS
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Constructionactivitiesaregenerallynot
plannedindetail
Difficultiesincoordinatingwithlocal
subcontractors
Coordinationbetweenconstructionand
commissioningneedsimprovement
Chineseconstructioncontractorsare
accustomedtofielddesignchanges
problemscanoccurwithforeigncontractors
notusedtothisapproach
Safetyisnotafocus
Reportingislimited
CONSTRUCTIONOBSERVATIONS
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QualifiedSite
Manager
QualifiedSite
Manager
DisciplineSite
Engineers
DisciplineSite
Engineers
Project
Controls
Project
Controls
QCManager QCManager
Specialty
Engineering
Support
Specialty
Engineering
Support
Weekly
Coordination
Meetings
Weekly
Coordination
Meetings
ActionItem
Lists
ActionItem
Lists
Claims
Management
Claims
Management
CONSTRUCTIONOVERSIGHT
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Donebysubcontractors
Commissioningprocessisnotintegratedintotheoverall
projectplan
Astructuredprocessisnotfollowed
Notenoughtimeistypicallyallottedforcommissioning
Constructiondoesmanyequipmentcommissioningtasks
thatwouldnormallybedonebythecommissioningteam
Hydrotestingofcriticalpipenotdone
Steamblowcompletedonacceleratedbasis(3days)
STARTUP/COMMISSIONINGOBSERVATIONS
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QualifiedCommissioningManager
Disciplinestartupengineers
Startuppackages
Startupschedule
FireprotectionandDCS protectioninplacepriorto
hotcommissioning
STARTUP/COMMISSIONINGOVERSIGHT
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Needperformancetestplan
Agreementoncalculatedresults
(correctionmethods)
Black&Veatchwitnessand
performancereportreview
PERFORMANCETESTING
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Q&A
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21
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