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Testing of Engineering Projects / Plants following Construction Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

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Page 1: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 1Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Testing of Engineering Projects / Plants following Construction

Testing of Engineering Projects / Plants following ConstructionIMIA WGP 82

24th September 2013 Delhi Conference

Roman Beerli

Page 2: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 2Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Work group members

Chairman:Roman Beerli, Infrassure Ltd

IMIA EC Sponsor:Michael Robertson, Liberty

Team Members:Andy Hottinger, AXIS ReThomas Gebert, ZurichDario Popovic, Infrassure Ltd Wolfgang Voelcker, Munich Re

Page 3: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 3Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Table of content

• Risk Assessment

• Management, operator experience, contractor/subcontractor

• Risk share, handover and insurance requirements in construction

contracts

• Specific Perils and Vulnerabilities of Project Components

• The soft factor issue: human errors

• Policy cover

• Conclusion

Page 4: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 4Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Management, operator experience, contractor/subcontractor

Complex facility construction projects

Testing and commissioning, design errors

Experience of Commissioning Engineers

Tight project time schedule

Page 5: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 5Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Management, operator experience, contractor/subcontractor

Complex facility construction projects

Testing and commissioning, design errors

Experience of Commissioning Engineers

Tight project time schedule

Page 6: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 6Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Management, operator experience, contractor/subcontractor

Complex facility construction projects

Testing and commissioning, design ….errors

Experience of Commissioning Engineers

Tight project time schedule

Page 7: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 7Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Management, operator experience, contractor/subcontractor

Complex facility construction projects

Testing and commissioning, design errors

Experience of Commissioning…Engineers

Tight project time schedule

Page 8: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 8Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Management, operator experience, contractor/subcontractor

Complex facility construction projects

Testing and commissioning, design errors

Experience of Commissioning Engineers

Tight project time schedule

Page 9: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 9Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Risk sharing, handover and insurance requirements in construction contracts

Contractors and subcontractors

Loss of profit

Construction period vs. Maintenance period

Handover

Page 10: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 10Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 11: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 11Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 12: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 12Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 13: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 13Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 14: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 14Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 15: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 15Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• Specific Perils and Vulnerabilities of Project Components

Location and layout of a construction site

Cold testing & Hot testing and commissioning

FLEXA

NATCAT

Special Scenario

Page 16: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 16Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• The soft factor Issue: human errors

Why does it still fail?

Feedback processes in other industries

Safety culture

Interaction between involved parties

Page 17: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 17Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• The soft factor Issue: human errors

Why does it still fail?

Feedback processes in other industries

Safety culture

Interaction between involved parties

Page 18: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 18Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• The soft factor Issue: human errors

Why does it still fail?

Comparison with other industries

Safety culture

Interaction between involved parties

Page 19: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 19Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• The soft factor Issue: human errors

Why does it still fail?

Comparison with other industries

Safety culture

Interaction between involved parties

Page 20: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 20Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Risk Assessment

• The soft factor Issue: human errors

Why does it still fail?

Comparison with other industries

Safety culture

Interaction between involved parties

Page 21: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 21Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Policy cover

• There are 3 main criteria to be considered:

Definition for the testing and commissioning period

Duration

Fulfillment of criteria

Different conditions

Extensions

Page 22: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 22Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

Conclusion

• The testing and start up phase is the most critical time during an erection project

• Time schedules are an important tool to evaluate critical path and potential buffer zones

• Test and commissioning period is to be defined clearly in the insurance contract

• Due to higher exposure and live feed to the equipment the conditions have to pay credit to this changing environment

• Experienced contractor with good procedures in place combined with a policy wording based on risk sharing can mitigate the overall exposure

Page 23: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

| 23Infrassure Ltd. Roman Beerli – Testing following construction - 24th September 2013

“ It is not the beauty of a building you should look at; its the construction of the foundation that will stand the test of time.

Dave Allan Coe

“ If a building looks better under construction than it does when finished, then it’s a failure.

Doug Coupland

Any questions?

Page 24: Testing of Engineering Projects / Plants following …...Testing of Engineering Projects / Plants following Construction IMIA WGP 82 24 th September 2013 Delhi Conference Roman Beerli

Infrassure Ltd., Uetlibergstrasse 134A, P. O. Box 5089, CH-8045 Zürich, Switzerland www.infrassure.com

Thank You