The Role of the Quantity Surveyor on Windfarm Developments · The Role of the Quantity Surveyor on...

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The Role of the Quantity Surveyor on Windfarm Developments Neil Quinn MSCSI MRICS ESB International

Transcript of The Role of the Quantity Surveyor on Windfarm Developments · The Role of the Quantity Surveyor on...

Page 1: The Role of the Quantity Surveyor on Windfarm Developments · The Role of the Quantity Surveyor on Windfarm Developments ... Nordex, Vestas, Enercon , Siemens • Some will offer

The Role of the Quantity Surveyor on Windfarm Developments

Neil Quinn MSCSI MRICSESB International

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Overview

• Introduction to Windfarms

• Contractual Approach to Windfarm Developments

• The Different Contracts

• The Role the QS can play

• Typical Claim Events

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Electricity Generation in Ireland

Combination of all

Coal (1903)

Hydro (1920s)

Peat (1950)

Gas and Steam (1980s)

Wind (Late 1980s)

Biomass (2005)

Tidal (2015?)

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Electricity Generation in Ireland

• Current Total Generation Capacity (RoI) of 6,764MW

• 1,700MW of Wind Generation Capacity (25%)

• Maximum Wind Output 1,506MW

• Target for Ireland is to have 40% Renewables by 2020

• ESB Generates 490MW – 331MW in Ireland

• Target Renewables Generation for ESB is 1800MW by 2025

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ESB Windfarm Portfolio

• Plus three Windfarms in the UK

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Windfarms

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Windfarms

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Windfarms - Typical Economics

• Average approximate cost of €1.5m per MW• Typical turbine currently generates 2.5MW• 15 turbine site ≈ €55m• Split:

– Turbines: 70%– Civil: 13%– Electrical: 12%– Others: 5%

• Renewable Credits - REFIT (Ire) ROCs (UK)• Target IRRs – Developer Dependent

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Contractual Approach

• Either:– EPC– Multi-Contract

• Can be D & B, or Employer Designed, or mixture

• 3 main contracts– Turbines– Electrical BoP– Civil BoP

• FIDIC Silver, Yellow and Red (heavily amended)

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Turbine Contract

• 70% of total Development Cost - €2m to €3m per turbine

• Main suppliers in Ireland – Nordex, Vestas, Enercon, Siemens

• Some will offer a full EPC service

• More usually extended to include Foundation Design

• Delivery and Erection are Key Issues

• FIDIC Silver in theory – Supplier’s contract in practice

• Scrutinise the terms and conditions!

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Electrical Balance of Plant

• 12 – 14% of total development cost

• Scope includes:– Substation (38kV or 110kV) including Civil Works– Cabling including Civil Works– House Transformers– Energisation / Commissioning

• Usually D & B – FIDIC Yellow

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Civil Contract

• Usually 13 – 15% of total Development Cost

• Scope includes:– WTG Foundations (piled if necessary)– Hardstandings– Access Roads & Drainage– Public Road Upgrades / Modifications

• Can be either Employer Designed or D & B

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Foundations

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Hardstandings & Access Roads

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Public Road Modifications

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The Role the QS can play

• All skills can be brought to bear

• Cost management traditionally by Engineer

• Civil Contract most obvious– Pre-contract estimates for Financial Models– BoQs / Procurement– Cost control during construction

• Regional Cost Variances

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The Role the QS can play

• Guidance for Turbines and EBoP on – procurement and contract terms – contract administration

• Risk Management / Apportionment

• Claims management on other contracts– Civil works on EBoP

– Wind delays on Turbines

– Negotiation skills are invaluable

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Typical Issues – Ground Conditions

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Typical Issues – Materials Management

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Typical Issues – Floating Roads

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Typical Issues - Geotechnical

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Typical Issues – Road Modifications

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Typical Issues – Wind Delays

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In conclusion…..

• A growing market

• A growing recognition of what a QS brings to the process

• Need for specialist cost management skills

• QS is best placed to deliver

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