Transcript PPT - Fidic

FIDIC Workshop WS 12, Beijing Conference
Design – Build – Operate
a new Contract
Wednesday, 7th September 2005
Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger, EC Member
NEK Ingenieure, Berlin, Germany
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO ( Definition )
The
Design – Build – Operate
approach
combines design, construction, long term plant /
facility operation and maintenance into a single
contract, with one legal entity, known as the
Contractor.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Format
“green field” scenario :
a sequence of
Design – Build – Operate
“brown field” scenario :
a sequence of
Operate – Design - Build
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
CONDITIONS OF CONTRACT
published 1999
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Motivation
Time Schedule Advantages
Financial Compliance
Single Point of Responsibility
Allocation of Project Risk
Fitness for Purpose
ACEC / FIDIC CC
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
Design – Build – Operate Organisation
Employer
Representative
Engineer
Independent Auditor
Contractor
Design / Planning
Build / Construction
Operate / Maintenance
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
DBO FLOW CHART(Typical Sequence of Principle Events)
CONTRACT PERIOD ( AGGREGATE OF ´DESIGN-BUILD PERIOD´ AND ´OPERATION SERVICE PERIOD´
DESIGN - BUILD PERIOD
COMMISSIONING
PERIOD
OPERATION SERVICE PERIOD
RETENTION
PERIOD
3 months
COMMISSIONING
CERTIFICATE
ACCESS TO SITE
2 YEARS
1 YEAR
SECURITY D - B
RETURNED
COMPLETION
CERTIFICATE
19 YEARS
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
DBO FLOW CHART ( TIMELINE PART 1 )
FINANCIAL SCENARIO: release
of Design-Build f unding (cumul.
%):
0%
70%
95,00%
100%
CONTRACT PERIOD ( AGGREGATE OF 'DESIGN-BUILD PERIOD' AND 'OPERATION SERVICE PERIOD
Sub-Clause 8.1
DESIGN-BUILD WORK PERIOD
Employer's
Represent at ive gives
Cont ract or Not ice of
t he Commencement
Dat e
OPERATION SERV
Com m issioning Period
Retention Period
Sub-Clause 8.1
Clause 10
Employer issues
Let t er of
Accept ance
Sub-Clause 2.1
Su
Employer's
Represent at ive issues
Commissioning
Cert ificat e
Employer's
Represent at ive
grant s Cont ract or
Access t o and
Possession of Sit e
Clause 4.2
Performance Securit y
for D-B Period
Ret urned
3 mont hs
TYPICAL TIMING (in years or
parts thereof ):
2 years
1 year
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
Join
DBO FLOW CHART ( TIMELINE PART 2 )
ND 'OPERATION SERVICE PERIOD' )
OPERATION SERVICE PERIOD
Sub-Clause 12.5
Sub-Clause 12.5
Joint Inspect ion of
Works
Sub-Clause 12.5
Final Inspect ion
of Works
Employer's
Represent at ive isssues
Cont ract Complet ion
Cert ificat e
not great er t han 36 mont hs
19 years
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Independent Auditor
Appointment of an Independent Auditor is a
common practice globally for compliance with
Quality Assurance procedures . ( Performance
Criteria )
It is required to assess the Contractor’s
Performance in carrying out the Contract, and
also to examine the Employer’s Management
and Monitoring of the Contractor.
Defects in the performance of both the
Contractor and the Employer will be identified
and addressed.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO “Asset Replacement Fund”
In order to ensure that the condition of the
Plant in the Works is properly maintained,
replacement of major items of Plant will be
required over the Contract Period.
Therefore capital sums will be need to be
expended throughout the Operation and
Maintenance Period.
This money will be held as an “Asset
Replacement Fund”.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO “Asset Replacement Fund”
Monies provided under the DBO Contract on
the schedule presented by the Contractor,
specifying the major items of Plant to be
replaced and timing and cost of such
replacement.
The following cost are excluded :
Routine maintenance items
Correction of defects
Replacement of Plant and Material which have a life expectancy of
less than (5) to 7 years
Providing spares between scheduled dates for major plant
replacement
Replacement of Plant and Materials not identified in the schedule
of major plant items
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO “Maintenance Reserve Fund”
The “Maintenance Reserve Fund” is required to
provide an incentive to the Contractor to ensure
that the Works are in proper condition at the
end of the Operation and Maintenance Period.
Definition:
A retention of 5 % from payments due to the
Contractor in the last five years of the
Operation and Maintenance Period, up to a
contracted ( capped ) amount, to be released
after issuing the Contract Completion
Certificate.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO “Facility Management Plan”
The Facility Management Plan means the
operation and maintenance methodology
submitted by the Contractor with his Tender
and the requirements are as detailed in the
Employer’s Requirements.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO “Variation / Change Management”
Typically, it is anticipated that the following must be
provided for i.e. :
Changing load
Major industry ( arrival / departure )
Technical obsolescence
Increased performance standards
Interaction with networks managed by others
Changes legislation
Contractor goes into liquidation
Failure to meet performance standards
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
DBO FLOW CHART ( TIMELINE PART 2 )
ND 'OPERATION SERVICE PERIOD' )
OPERATION SERVICE PERIOD
Sub-Clause 12.5
Sub-Clause 12.5
Joint Inspect ion of
Works
Sub-Clause 12.5
Final Inspect ion
of Works
Employer's
Represent at ive isssues
Cont ract Complet ion
Cert ificat e
not great er t han 36 mont hs
19 years
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Joint Inspection
The Employer’s Representative and the Contractor
shall carry out Joint Inspection on the condition of
the Works identifying maintenance works,
replacements and other works.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Final Inspection
The Contractor shall notify the Employer that the
Works are complete and ready for Final Inspection.
After issuing the Contract Completion Certificate
when passing the Final Inspection satisfactory the
Employer shall be responsible for the care, safety,
operation, servicing and maintenance of the works.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO Risks
One of the advantages of the DBO approach is the
value for money achieved through effective risk
allocation.
The Employer’s and Contractor’s risks have to be
clearly defined.
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
DBO FLOW CHART(Typical Sequence of Principle Events)
CONTRACT PERIOD ( AGGREGATE OF ´DESIGN-BUILD PERIOD´ AND ´OPERATION SERVICE PERIOD´
DESIGN - BUILD PERIOD
COMMISSIONING
PERIOD
OPERATION SERVICE PERIOD
RETENTION
PERIOD
3 months
COMMISSIONING
CERTIFICATE
ACCESS TO SITE
2 YEARS
1 YEAR
SECURITY D - B
RETURNED
COMPLETION
CERTIFICATE
19 YEARS
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG
FIDIC DBO CC Questions: Word and Content
1. “Facility Management Plan” to assist and advise on
the management and monitoring of the operation
and maintenance of the facilities provided
2. “Asset Replacement Fund” to ensure proper
condition of Plant in the Works over the O & M
Period
3. “Maintenance Reserve Fund” to provide an
incentive to ensure that the Works are in proper
condition at the end of O & M Period
4. Independent Auditor issues on compliance process
in relation to the operation and performance criteria
5.
Which colour for the DBO Conditions of Contract – golden ?
INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG