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INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG FIDIC Workshop WS 12, Beijing Conference Design.

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Presentation on theme: "INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – WWW.FIDIC.ORG FIDIC Workshop WS 12, Beijing Conference Design."— Presentation transcript:

1 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – FIDIC Workshop WS 12, Beijing Conference Design – Build – Operate a new Contract Wednesday, 7 th September 2005 Dipl.-Ing., Dipl.-Wirt.-Ing. Axel-V. Jaeger, EC Member NEK Ingenieure, Berlin, Germany

2 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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.

3 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – FIDIC DBO Format green field scenario : a sequence of Design – Build – Operate brown field scenario : a sequence of Operate – Design - Build

4 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – CONDITIONS OF CONTRACT published 1999

5 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – FIDIC DBO Motivation Time Schedule Advantages Financial Compliance Single Point of Responsibility Allocation of Project Risk Fitness for Purpose ACEC / FIDIC CC

6 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – Design – Build – Operate Organisation

7 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – DBO FLOW CHART (Typical Sequence of Principle Events)

8 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – DBO FLOW CHART ( TIMELINE PART 1 )

9 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – DBO FLOW CHART ( TIMELINE PART 2 )

10 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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 Contractors Performance in carrying out the Contract, and also to examine the Employers Management and Monitoring of the Contractor. Defects in the performance of both the Contractor and the Employer will be identified and addressed.

11 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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.

12 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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

13 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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.

14 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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 Employers Requirements.

15 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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

16 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – DBO FLOW CHART ( TIMELINE PART 2 )

17 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – FIDIC DBO Joint Inspection The Employers Representative and the Contractor shall carry out Joint Inspection on the condition of the Works identifying maintenance works, replacements and other works.

18 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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.

19 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – FIDIC DBO Risks One of the advantages of the DBO approach is the value for money achieved through effective risk allocation. The Employers and Contractors risks have to be clearly defined.

20 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – DBO FLOW CHART (Typical Sequence of Principle Events)

21 INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS – WORLD TRADE CENTER – GENEVA – SWITZERLAND – 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 Worksover 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 ?


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