project research station

8/8/2019 Project Research Station

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1

A new Antarctic ResearchStation

Halley VI

Sian Nash

Project Manager andProcurement Advisor for BAS

The procurement challenge

How to begin

The Competition

The search for a Contractor

Design development andestimating a price

The Contractual solution The Way Forward

Location,

location


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2

Why Replace Halley?

A window on key climate

change issues Ozone, Climate past and present, Space weather

50 years of continuous research

Halley Research Stations

Halley 1

Halley 2

The Background and the Brief

Halley 4

Halley 3



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3

Halley 5Winter 2003

Science Platform


0 (km) 10

Halley V

(May 11th 2003)

Halley VI

1958 ice front position

N9 / First Chasm fault line

Upstream limit

1967-1971 rift line

Maximise lifetime

Regard to ice-shelf behaviour

Minimise snow accumulation

Minimise impact on surroundings

Energy efficient and economic to operate

Excellent living and working environment

Innovative but practical

Cost effective and low maintenance

Easy to remove

Requirements for new station


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4

Meet requirements of Brief, plus..

Remote and hostile environment

Foundations moving at 500 m per year

Delivery of materials to ice shelf

Construction challenge- Start Dec 07,complete Jan 10.

The Design Challenge

The Programme Drivers

1st Sept

Concepts

04/05 05/06 06/07

Con. Dev Enabling Cont.EOIsPlanning

29thJun03/04

Trials & Fabrication

Construction&

DemolitionYr 1

Construction&

DemolitionYr 2

06/07 07/08 08/09 09/10

High Risk of CalvingShipping Construction

10/11

Final InstallationsCommissioning

Demolition

Procurement Strategy Competition

Stage 1 EOIs from Design Teams

Stage 2 Concepts (6 teams)

- EOIs Contractors

Stage 3 Concept Development (3 teams)

(with 3 x Contractor + BAS input)

- Three D&B Tenders to RIBA Stage G

D&B Contract Winning Design Team


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5

The Design Competition

The three winning designs

Brief- To develop designs toRIBA Stage G

Designers remunerated setfee and procured under PSC

Meanwhile

The Design Commission


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6

OJEU notice placed

6 E of Is received and evaluated

Only 1 able to provide the Service Leaves a problem

The Search for 3 Contractors

Design development

Engaged single Contractor towork with 3 teams anddevelop designs/ prices

Utilised PSC

Designs returned andreviewed qualitatively andquantitively

Final Choice selected

The Chosen Design

Flexibility

Module A livingaccommodation

Potential to achieve budget


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7

Winning concept design cost

24.5 m and thereforeunaffordable.

Options to move forwardconsidered

Conclusion to continue andvalue engineer scheme

AffordabilityAffordability

Procurement Reality Competition

Stage 1 EOIs from Design Teams

Stage 2 Concepts

- EOIs Contractors (5 submissions / 1 compliant)

Stage 3 Concept Development

(with 1 x Contractor + BAS input)

Enabling Contract Design RIBA D - G

Negotiate Contract

D&B Contract

The Contract..

Design team now nominated toContractor and continue designdevelopment under PSC

Meanwhile- Contract negotiationsand price challenge continues


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8

The Construction Contract

Why the ECC NEC?

Most of all- Flexible

International application

Suite of contracts

OGC endorsed

The Construction Contract

Which Main Option

Lump sum?

Target Cost?

Construction

time

Furtherdesign

Detaileddesign

Settarget

Risks withContractor

max

min

Risks with

Employer

Contractor

on board

Possibleoutturn

cost

Stage 4- D&B procurement and

constructionStage 3

3 teams carry

out conceptdevelopment

Target Contract- the process


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9

Procurement strategy

Target Cost plus

Secondary options

X2- changes in law

X4- Parent Company Guarantee

X5- Sectional Completion

X7- Delay Damages

X15- Limitation of Designers Liability

X16- Retention

X18 Limitation of Liability

Y (UK)2, Y (UK) 3

Procurement Strategy

Pain/ Gain share mechanism

110 %

shareranges

time

the Prices the movingtarget!

compensationevents

40 %

50 %

50 %

100 %

PSPDEmployer

sharepercentage

amount

tendered

total ofthe

Prices

100 %

90 %

80 %

95 %

105 %

75 %

45 %

65 %

Contractor

Contract challenges

1. General

Boundary of site

Risk Register

3. Time

Sectional completion vs Key Dates

Liability for Key Dates


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Contract challenges

4. Testing and Defects

Defect corrections

5. Payment

South African Consortium

Defined cost for failure to achieve sectional

completion or key date assessed at end ofseason

Contract Challenges

6. Compensation Events

Failure of vehicles and plant supplied by Employer

Sea Ice 1999 Sea Ice - 2003

Challenges Just Getting Ashore

Compensation Events- delivery of Contractors cargo


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Delivering the cargo..

Distances can be great

Weather conditions can be

harsh

Abandon CAT !!

Ship

Welcoming committee

Compensation Events Cancellation or delay in transport

provided by Employer

18 Hrs

1 day

1 day

25

days

12 days

16 Hrs

8 Hrs1 Day

1 Day

Compensation Events

All costs associated withincrease in Contractorspersonnel on Brunt iceshelf

Withdrawal of SouthAfrican consortium


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Contract challenges

8. Risks and Insurances

Overall limit of liability

Additional Employers risks

Weather!

Compensation Event assessment using

SSCC Marking and title

Unusual Z clauses

Contract challenges Flexibility of working area

Brunt Ice shelf

UK Port Site

UK consolidation Warehouse and Packingstation

Cape Town Consolidation and Packingstation

Cape Town Port Site

Modification to SCC- allow payment for keypeople


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Final Contract negotiations

Core Clauses and ContractTerms for Option C plus

Professional IndemnityInsurance

Right of Offset

Parent Company Guarantee

Total liability

Liabilities for Key dates

Risks accepted by BAS in association

with Contractor

Bad weather preventingContractor achieving critical path

BAS unable to deliver cargo toHalley VI cargo line

BAS unable to deliver personnelto cargo line

BAS unable to deliver personnelback to UK

BAS vehicles and plant fail

Flavour of other BAS risks Charter ship delayed

Bad weather delays

Additional commercial flights

Fuel costs

Staff recruitment

Project overspend

Programme

Ice shelf calve


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14

Revised Tender Offer

Single action tender- 3 quotes

required to verify Target Cost

Showstopper: Terms for SouthAfrican Consortium

Final Total of the Prices21.844m

Budget

Construction & Demolition Contract - 22m

Logistics, Vehicles, Accommodation, Design,BAS - 16m

Total - 38m

Sponsorship?

The Way Forward Tricky part done

now just got to build it!

project research station

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