Presentation on theme: "EPC Contracting in a Demand Driven Market (The Trimble County 2 Contracting Experience) January 18, 2007."— Presentation transcript:
EPC Contracting in a Demand Driven Market (The Trimble County 2 Contracting Experience) January 18, 2007
2 Trimble County 2 (TC2) Key Features Net Capacity760 MW Net Heat Rate8,662 Btu/Kwh Scheduled CODJune, 2010 Air Quality Control Train: SCR, Dry Electrostatic Precipitator (ESP), Bag House, Wet Scrubber and Wet ESP Awarded a $125 Million ITC by the IRS for meeting 2005 EPAct Section 48A Standards for Efficiency and Emissions One of two PC based projects to receive awards
3 Key Steps in EPC Contracting Today Discuss Multiple Bidding Concepts with All Interested Parties Engineers / Constructors / OEMs / Owners Engineers Other Utilities or Generators / Financers / Partners / Legal Advisers Discover Current Practice in the Industry Risk Allocation Vs. Price Bidding and Construction Time Lines Develop a Plan that Meets the Owners and Bidders Needs Seek Commitments to Participate from Qualified Bidders Follow the Plan
4 TC2 Used a Two Stage Open Book Selection Process EPC Contractor Selected in Competitive Bid with Key Equipment Allowance Open Book Bidding and Selection of Key Equipment by Owner Boiler / Steam Turbine / AQCS Owner Approval of Additional Major Equipment Items Defined Equitable Adjustment Process for Changes in Key Equipment Final Evaluated Price Vs Allowance Installation and BOP Impacts Book Closes when Equitable Adjustment Process is Complete
5 Key Benefits and Risks of the TC2 Process Owner Benefits Freedom to Select EPC and Key Equipment May Lower EPC Price Premium Owner Risks Price Uncertainty Until Book Closes Contractor Benefits Lower Cost to Prepare Initial Bid Selection Based on Contractor Merits Mutual Benefits and Risks Well Understood Scope and Price Potential for Contentious Equitable Adjustment Process
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