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IPED COAL POWER CONFERENCE. Construction Contracting The Rollercoaster. presented by. January 18-19, 2007 St. Petersburg, FL. Keith J. Platte, P.E. R. W. Beck, Inc. Architect Engineer. General Contractor. Procure Major Equip. Final Commiss. & Testing. Substations & Elec. Inter.

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  1. IPED COAL POWER CONFERENCE Construction Contracting The Rollercoaster presented by January 18-19, 2007 St. Petersburg, FL Keith J. Platte, P.E. R. W. Beck, Inc.

  2. Architect Engineer General Contractor Procure Major Equip Final Commiss. & Testing Substations & Elec. Inter. A/E Approach Owner

  3. ConstructionManager Sub-Contractor Sub-Contractor Sub-Contractor Sub-Contractor Engineer Procure Major Equip Substations & Elec. Inter. CM Owner

  4. Owner ConstructionTeam Sub-Contractor Sub-Contractor Sub-Contractor Sub-Contractor Engineer Construction Manager Procure Major Equip Substations & Elec. Inter. EPC CM Variation

  5. Construction ManagerOE Contractor Contractor Contractor Contractor Engineer Procure Major Equip Start Up & Commissioning Multiple Prime Owner

  6. EPC Contract (turnkey) Owner Substation EPC Contractor EPC Contractor Start Up & Testing Construction Procurement Engineer

  7. Contracting Time Line Gov’t Supports EPC as Contract Method of Choice 1990 1980 2006 1970 2000 Move to EPC Contracting A/E ApproachMega-projectsCost Reimbursable Move to Alternative ContractingCMMultiple Prime IPP’s CommenceEPC Contracts are Prevalent

  8. RISK $ Environment Holders Owner Construction Manager EPC Contractor Engineer Engineering Schedule Plant Performance QA QC

  9. What Type of Contracting Approach is Correct?

  10. Drivers • Owner internal capability • Bond market • Contractor financial condition • Major equipment supplier’s financial condition • Contractor bankruptcies • Labor market • Insurance market • Owner’s, engineering company’s and contractor’s risk tolerance • Regulatory environment

  11. EPC Contract Today P ? P ? ? P ? P ? • Design & Engineering • Procurement all Components • Construction • Schedule • Cost • Quality • Performance • Construction Permitting • Start Up & Commissioning

  12. Future • Mix of EPC contracting, multiple prime, and construction management • Pushback on various commercial terms • E.g. Limit of liability, fixed material cost, guaranteed schedule, lump sum cost, etc. • “Open book” concepts

  13. IPED COAL POWER CONFERENCE Questions Keith Platte, P.E. R. W. Beck, Inc. kplatte@rwbeck.com (303) 299-5264

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