DPR Preparation in the context of EPC 2

DPR Preparation in the context of EPC 2 nd Quaterly Workshop on State JV at IRICEN, Pune 25 th Sept 2017 RAJESH AGARWAL – Sr VP-Railway rajesh. agarwal@dimts. in Mob: 94192 -44000, 97174 -16600 1

TABLE OF CONTENTS A. DIMTS : 04 B. EPC Essentials : 04 C. Risk Allocation : 02 D. BOQ to EPC Contracts : 04 E. Risk Allocation in EPC : 02 F. Design & Build vs EPC : 03 G. DPR for EPC : 10 H. DOs for EPC : 01 I. Cautions and Precautions : 03 J. References : 01 2

An ISO 9001, 14001, OHSAS 18001, ISO 27001 & CMMI L 3 Certified Company 3

Delhi Integrated Multi-Modal Transit System (DIMTS) Limited Maharana Pratap ISBT Building, Kashmere Gate, Delhi 6 • Transport and Infrastructure Concept-to-Commissioning Consultancy • Joint Venture of • Government of National Capital Territory of Delhi (GNCTD) • IDFC Foundation (a not-for-profit initiative of IDFC Limited) • Multi-disciplinary team of professionals • Railway • Engineering • Transport Planning and Technology, • Transport Operations • Financial and Transaction Advisory, • Information Technology 4

Board of Directors • Dr. M. M. Kutty, IAS, Chief Secretary, GNCTD • Mrs. Varsha Joshi, IAS, Secretary cum Commissioner (Transport), GNCTD • Mr. Rakesh Bali, IAS, Special Secretary (Finance), GNCTD • Mr. Dinesh Mohan, Professor (IIT, Delhi), Nominee, GNCTD • Dr. N. S. Rajan, CEO-IDFC Foundation, Nominee, IDFC Foundation • Mr. Avtar Monga, Nominee, IDFC Foundation • Mr. M. Ramsekhar, (ex IAS) Managing Director & CEO 5

Railway Projects • Gevra Road Pendra Road, 122 km Chhattisgarh • Korba-Dharamjaygarh, 62 km. Chhattisgarh, • Kathghora-Dongargarh, 293 km Chhattisgarh • Shivpur-Kathautia, 49 km, Jharkhand • Delhi Panipat Rapid Rail Tranport, 111 km • Delhi Meerut Rapid Rail Transport, 50 km • Metro, World Class Stations, PFTs, Sidings 6

International Clients • • • Republic of Congo, Addis Ababa, Ethiopia Ministry of Urban Development, Sri Lanka Swedish National Road Consulting AB Ministry of External Affairs, Govt. of India for Afganistan 7

DPR Preparation in the context of EPC 8

EPC Essentials? • Need for a form of contract where: ‘Certainty of final price, and often of Completion date, are of extreme importance & where lenders require greater certainty about a project’s final costs’ Jonathan Hosie 9

EPC Essentials • Attracts Big Contractors – Numbers may not be large – All range of skill not with one contractor-consortium or – Series of turnkey contracts for various technologies • Useful for – Complex Designs – Unique Structures – Insufficient Knowhow with Client 10

EPC Essentials • Freedom to Plan Construction Schedule • Milestone Based Payments. • Damages and Bonus related to time of completion. • Professional Insurance. • Operational or Business Interruption cover 11

EPC Essentials? Front End Engineering Design (‘FEED’) contract • Once sufficiently certain – scope of design – expected outturn cost – date for completion, ‘Go for ’ an EPC Tender 12

BOQ to EPC Contracts A Paradigm Shift • Migrating from Works to Supply Concepts Input Material and Process specification Output Detailed functional requirements & specifications 13

BOQ to EPC Contracts A Paradigm Shift • Cost Estimation Cost of Input Material and Process Cost per unit of finished Asset 14

BOQ to EPC Contracts A Paradigm Shift • Quality BOQ Raw Material & Process Quality Works S u p p l y EPC Process Quality & Design Defect Liability Product Quality & Warranty 15

Risk Allocation in EPC Owner’s no warranty for -Sufficiency of survey data -Completeness of the information Contractor responsible for owner’s data -Verification -interpretation 16

Risk Allocation in EPC Owner’s no warranty for -interface issues Contractor risk assurance wrap - single-point responsibility for the entire project 17

BOQ to EPC Tender preparation Tenderer’s Perspective Additional Cost Additional Time 18

Difference between Design and Build and EPC contracts Design & Build EPC Owner & construction manager/designer take active role in commissioning Contractor hands over working facility, ready to go provide at least some design detail in bidding documents Specify output levels, uptime levels, maintenance expense maximums, etc. Pay more but greater degree of time and cost certainty 19

DPR for EPC • Survey – Topographical – Preliminary Geotechnical • Alignment/(Electrification Sectioning Diagram) • Identification of Assets – Stations, Yard Plan, Buildings, Bridges and Grade Separators, S&T, Electrical, Mechanical • Identification of Utilities – Electrical & Water Supply 20

DPR for EPC • Essential Technical Specifications for – Earthwork, Concrete works, Steel Works, – Protective Works – Track – S &T – Traction – General Power – Supply of Stores 21

DPR for EPC • Define Scope-Holistic and Realistic • Specify Alignment –Contractor to review/revalidate – Catch: Wilful suggestions for deviations-creates ground for delay on client account. • Specify Geometric design –curves, grades, FL • Identify codes-National/International • DBN to be firm 22

DPR for EPC Design Basis Note (DBN) to be firm • • Loading Standards SOD Design Philosophy Serviceability Criteria (Redundancy) – eg: Blast Load, collapse of member during accident Maintainability Criteria – Protective coatings, Durability Criteria Material Specifications Acceptability Criteria – Type of Tests, NABL labs, 23

DPR for EPC • • • List of Important/Major/Minor Bridges List of ROR/ROB/RUB/LHS Track Standards Yard layouts Station preliminary drawings – eg FOB-Design can be different • Passenger Amenities • Building works –define user requirements 24

DPR for EPC • • Drainage system, water supply, Boundary wall, Signage Signalling works Telecom works TPWS OFC 25

DPR for EPC • • General Power OHE SCADA system Power Line Crossings Extension/Augmentation of Electrical power Solar power Tower wagon Shed Trip Shed, Washing lines, pitline 26

DPR for EPC • Spares for Engineering, S&T, Electrical Deptt • Identify tests for acceptance of work • Firm up open clauses of Standard Model Document 27

DPR for EPC Cost Estimation Preliminary/Conceptual Designs/GADs Quantity Estimation LARs/Analysis of Rates Block Section/Station/Reach wise Cost Estimation • Reference Cost of similar Projects/Structures • • 28

DPR for EPC Freeze the Considerations • Demographic Projections • Economic Transitions- eg: Pit Head STPS • New Technology – RRI/SSI/Electronic Interlocking – Air Insulated/ Gas Insulated – Simply Supported/Cantilever/Cable Stayed – Alignment at Grade/Elevated/Underground – National Code/International Code 29

DOs for EPC • Retain Team Composition from Concept to Commissioning • Full Budget Commitment • Land 90% available (Cl 8. 3. 1 for damages) • Environment and Forest Clearance • Traffic Blocks to be agreed in advance 30

Cautions and Precautions for EPC • Contractor’s Proof Consultant? • Contractor’s 3 rd Party Quality Control and Assurance? • Change of Scope (Cl 13. 1) • Extension of Time (Cl 10. 4) –can it compensate for Cost Escalation • GCC of Railway vs FIDIC Conditions • Time bound decisions-accountability for delay 31

Cautions and Precautions for EPC § Difficult to accommodate changes in DBN due to updating of Standards after award of contract. § EPC Contractors Design to fit DBN –Structures cannot accommodate operational phase up gradation of loading Standards § Delays in Approvals being unique design § Loose Advantages of Standardisation for interoperability

Cautions and Precautions for EPC § Multiple Designs by Multiple Contractors for same long route § Maintenance Inventory Increases for different structures § Maintenance Training to Staff for different structures § Large Commercial Disputes being Lump sum cost contract

References IR Model Request for RFQ IR Model Request for RFP IR Model EPC Agreement for Railway projects FIDIC Conditions of Contract for Design-Build. Turnkey • FIDIC Conditions of Contract for Plant Design Build • FIDIC Conditions of Contract for EPC Turnkey Projects • • 34

Thank You 35