Malakhov Vladimir. Presentation for IAEA Technical Meeting on Becoming a Knowledgeable Customer in Obninsk 07.04.2014

The State Corparation of Atomic Energy RОSАТОМ

ROSATOM NEW PROJECTS of NPS THEME: Contract strategies of project realization of new NPS in ROSATOM.

Vladimir Malakhov Ph.D. DBA Adviser of Director on Capital Investments SC RОSАТОМ

07.04.2014

Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 2

INVEST-BUILDING PROCESS (IBP)

ИНВЕСТИЦИОННЫЙ ЗАМЫСЕЛ (INVESTMENT PLANNING)

ФИНАНСОВОЕ ПЛАНИРОВАНИЕ (FINANCING)

БИЗНЕС-ПЛАНИРОВАНИЕ (BUSINESS-PLANNING)

УПРАВЛЕНИЕ РЕАЛИЗАЦИЕЙ ПРОЕКТА (PROCESS MANAGEMENT)

ПРОЕКТИРОВАНИЕ И ДИЗАЙН (ENGINEERING)

КОМПЛЕКТАЦИЯ (PROCURIMENT)

СТРОИТЕЛЬСТВО (CONSTRUCTION)

ВВОД В ЭКСПЛУАТАЦИЮ (OBJECT COMISSIONING)

ЭКСПЛУАТАЦИЯ / РЕАЛИЗАЦИЯ (OPERATION / TRANSFER)

ВЫВОД ИЗ ЭКСПЛУАТАЦИИ (DECOMISSIONING)

I

F

BP

PM

E

P

C

OC

O/T

DC

КОНЦЕПТУАЛЬНЫЙ ИНЖИНИРИНГ (CONCEPT OF DEVELOPMENT & CONCEPTUAL ENGINEERING )

ФИНАНСОВЫЙ ИНЖИНИРИНГ (FINANCIAL ENGINEERING)

ТЕХНИКО-ЭКОНОМИЧЕСКИЙ ИНЖИНИРИНГ (TECHNICAL & ECONOMIC ENGINEERING)

ОРГАНИЗАЦИОННЫЙ ИНЖИНИРИНГ (MANAGERIAL & SYSTEM ENGINEERING)

БАЗОВОЕ И РАБОЧЕЕ ПРОЕКТИРОВАНИЕ (BASIC & DETAILED ENGINEERING & DESIGN)

ЛОГИСТИЧЕСКИЙ ИНЖИНИРИНГ (LOGISTICS ENGINEERING)

ПРОИЗВОДСТВЕННЫЙ ИНЖИНИРИНГ (CONSTRUCTION ENGINEERING)

ИСПЫТАТЕЛЬНЫЙ И ПУСКОВОЙ ИНЖИНИРИНГ (COMISSIONING DESIGN)

ЭКСПЛУАТАЦИОННЫЙ ИНЖИНИРИНГ (OPERATION / CLOSEOUT PROCESSING)

ЛИКВИДАЦИОННЫЙ ИНЖИНИРИНГ (DECOMISSIONING DESIGN)

Basic Invest-Building Process (IBP) Engineering of each stage of IBP Variant circular IBP

THE INVESTMENT-BUILDING PROJECT - any time-limited investment enterprise

directed to create new unique object of the real estate is impossible without

achievement of the purposes of investment.

THE INVESTMENT-BUILDING PROCESS - consecutive set of stages for realization

of any step of the investment building project, directed at achievemenst of the purposes of investments by creation or

changes of objects of real estate.


INVEST-BUILDING PROCESS VARIANTS IBP DEPEND on PARAMETERS of the PROJECT.

Consultancy

•Master-Plan

•Pre-Feasibility Study

•Feasibility Study

Design and Planning

•Preliminary Planning

•Conceptual Design

•Permit Application Design

•Construction Design

Procurement

•Tendering Procedures

•Suppliers Contracts

•Material Procurement

•Logistics

Construction

•Quality Supervision and Surveying

•As-built Documentation

•Construction cost tracking

•Acceptance

Start-up

•Staff Training

•Operation Manuals

•Maintainance Manuals

•Commissioning

Conceptual Engineering and

Design

•Feasibility Studies

•Basic Engineering

•Front-End Engineering and Design (FEED)

•Process Simulation

•Process Flow Diagram and Equipment Data Sheet

Detailed Engineering and Design

•Technology Process

•Mechanical Engineering

•Civil Engineering

•Process Desing and Piping

•Electrical and Instrimentation Control

Procurement Construction

Management (PCM)

•Expediting and Logistics

•Site management

•Health and Safety Management

•Quality Supervision and Surveying

Commissioning Handover

Rand Up

•As-built Documantation

•Consructioning cost tracking

•Comissioning and Plant

•Acceptance and Start up

Maintainance and Operation

•Plant Operation Management

•Plant Safety and Reliability

•Plant Revamp

•Decommissioning

Variant IBP for not industrial development Variant IBP for industrial development


INVEST-BUILDING PROCESS INVEST - BUILDING PROCESS BASE CLASSIFICATION INVEST - BUILDING CONTRACTS.

By way of choice of the executor

Competitive negotiations

The Public tender

Возмещение затрат (Cost+Fee)

Метод целевых затрат (Target Price)

Mixed by kinds of works and services

Technological project, Basic

Logistical engineering

Architectural or Design - project

General contract

Contract by kinds of works

Starting-up and adjustment ccontrat

The adviser of the Customer

The engineer of the project

The Site

manager

The manager of project

The responsibility for the professional competence

The responsibility for management and the control

Expanded general contract

EPC (Engineering, Procurement, Construction)

EPCM (Man. for Engineering,

Procurement, Construction)

PMC, EPCI, EPCC, EPCS contracts

Fee and Concession

Development

Contracts-turnkey

Фиксированная цена (Lump Sum)

Единичные цены (Measure&Value)

The announcement of the price

FEED, BP, exlusive project

Conceptual engineering

Изменяющаяся (MV to LSTK)

Basis of classification

By way of volume of the responsibility In invest - building process

Method of definition of the price

Complex Contracts

Engineering

Complete set and deliveries

Construction

Indentification of expenses

Base classification of contracts


FACTORS OF CONTRACT STRATEGY: CLASSIFICATION OF CUSTOMERS

THE MAIN CLASSIFICATION OF CUSTOMERS

The Passive Nonprofessional Customer (PN)

It is the most passive Customer which doesn't understand specificity of designing, construction and operations with objects,

moreover it basically doesn't intend to concentrate any attention at those objects in the future. Its purpose is to resolve the

assigned task. They are various state organizations or special funds which are

meant for charity.

The Passive Professional customer (PP)

The professional Customer invests in

objects of the real estate with a view to resale them separately in the future or for

other purposes. Those objects must be used neither for exploitation nor for

obtaining benefit by production or by rent activity.

The Active Nonprofessional Customer (АN)

The nonprofessional Customer of the

object which is not included in the field of the most important competences, but it needs for performance of nonspecialized

service functions, but the Customer is compelled to maintain such objects and

therefore has the competence of management, therefore it demands ofthe

strict accounting in the project of operational expenses for exploitation

The Active Professional Client (АP)

The professional Customer in the field of

construction of objects which must be built. It understands the technology or

production better than any of engineering companies and contractors and can adequately estimate expenses for construction, commissioning and withdrawal on the basis of own

competence and experience.

The

cust

om

er

Profile Project

The

th

ird

par

ty

3 4

Non-profile Project

Compliance to competences of Client

The

fu

ture

op

era

tor

of

the

ob

ject

2 1

The main classification of Customers


FACTORS OF CONTRACT STRATEDY: CLASSIFICATION OF CUSTOMERS THE MAIN CLASSIFICATION OF CUSTOMERS.

The Customer carries out great volume of works by own

department of capital construction. More often designing, as

conceptual as well as fundamental and working designing is carried out by own affiliated structures which are specializing in such objects.There is no needs in

complex (ЕРС/ЕРСМ) of contractors because management, construction and the organization

of works is conducted by own inspectors. In the best cases

contracts are concluded for special sections of design engineering,

creative technological or architectural decisions, exclusive design, subturnkey contract - i.e.

turnkey contract which has a level of title object, specialized and

linear subturnkey contract.Works connected with startup and

adjustment often are carried out by own structures

.

The customer is compelled to have such object for the objective

reasons more often.Either its own service or the expert, employed for

that aim, prepares the technical project for designing (ТЗ) and

employs the company on FEASTS. In this case corporative demands must be fulfilled. At first in case of need

one should address to advisers who are specializing on construction of similar objects. For performance of

works at design engineering the specializing designers are invited to

take part in tender. Functions of the technical adviser (ТЗ) are

carriedout either by own qualified operational service or by the

employed independent expert, but other construction and installation is done by small contractors under their own control, but over typical

works, in case of any atypical project EPCM -contract is optimum

model.

The customer is the professional in this area, but object is stranger for

it. Its specialists are commercial developers more often, but there

can be situations when construction of the similar enterprises are built

under control of experts of the Customer for related structure. In

this situation the Customer assumes functions of the Technical expert and takes charge of professional

competences, namely: the technology, structure of the

equipment, etc. The future operator connects a technological (or

architectural) project with its own requirements and coordinates

executors for realization of stages ИСП. Optimum model is a global

general contractor with functions of design engineering, building

прокъюримента (designs, building materials and auxiliaries) and a site-

manager, PCM - contractor it is optimum.

The customer is either casual, or a rare moderator of the invest-building

project by virtue of the received powers or concrete assignments.

This customer is compelled to address to experts for realization of

all stages of инвестиционно-building process more often, but by virtue of

the professional incapacity seeks also help from experts for an estimation

of offered services, their volume, quality, terms and cost. For such

companies the open public competition is a unique opportunity

to receive object for fair cost. The most acceptable form of contract

model is the EPC-contract for small and average projects and the EMC-

contract for complex projects, which have many titles, with possibility to

attract EPC -subcontractors and mini-EPC contractors and specialized

general subcontractors also.

Classification by the type of the Customer

Model 1 - AP. Model 2 - AN. Model 3 – PP. Model 4 - PN.

The expanded description of 4 types of Customers


FACTORS OF CONTRACT STRATEGIES: CLASSIFICATION OF CUSTOMERS TRANSITION FROM THE TYPE OF THE CUSTOMER TO THE CONTRACT MODEL.

The Passive Nonprofessional Customer (PN)

It is the most passive Customer which

doesn't understand specificity of designing, construction and operations with objects,

moreover it basically doesn't intend to concentrate any attention at those objects in the future. Its purpose is to resolve the

assigned task. They are various state organizations or special funds which are

meant for charity.

The Passive Professional customer (PP)

The professional Customer invests in

objects of the real estate with a view to resale them separately in the future or for

other purposes. Those objects must be used neither for exploitation nor for

obtaining benefit by production or by rent activity.

The Active Nonprofessional Customer (АN)

The nonprofessional Customer of the

object which is not included in the field of the most important competences, but it needs for performance of nonspecialized

service functions, but the Customer is compelled to maintain such objects and

therefore has the competence of management, therefore it demands ofthe

strict accounting in the project of operational expenses for exploitation

The Active Professional Client (АP)

The professional Customer in the field of construction of objects which must be built.

It understands the technology or production better than any of engineering

companies and contractors and can adequately estimate expenses for construction, commissioning and withdrawal on the basis of own

competence and experience.

Co

mp

eti

tive

ne

goti

atio

ns

Compensation of expenses

The

ten

der

sel

ecti

on

3 4


Method of estimation of the cost of the contract

Me

tho

d o

f a

cho

ice

of

the

co

ntr

acto

r

2 1

1-st Process step of formation of contract strategy


FACTORS OF CONTRACT STRATEGY: ENGINEERING ENGINEERING And TYPE of the CUSTOMER: AP and AN.

I

F

BP

PM

E

P

C

OC

O/T

DC

CONCEPTUAL ENGINEERING: the Customer does itself, can give for outsourcing special sections

FINANCIAL ENGINEERING: the Customer finds financing and credits

TECHNICAL And ECONOMIC SUBSTANTIATION: the Customer himself defines necessity of investments

ORGANIZATIONAL ENGINEERING: the Customer has in its structures the services of capital construction and the Technical

contractor

MANAGERIAL ENGINEERING: the Customer has in its structures the services of capital construction and the Technical contractor

PROCUREMENT and LOGISTICS: the Customer delivers the capital equipment, the rest - Executors

CONSTRUCTION ENGINEERING: Construction is carried out by General contractor

PUTTING INTO OPERATION: the Customer starts up object entirely, separate units and aggregates - can be started by

Executors

OPERATION: the Customer prepares the personnel and conducts management of object by itself

LIQUIDATING ENGINEERING: the Customer projects by itself, outsourcing of special sections

I

F

BP

PM

E

P

C

OC

O/T

DC

I

F

BP

PM

E

P

C

OC

O/T

DC

The CONCEPT: the Customer can make the technical project, more often by means of the expert, the Executor

does all the rest.


TECHNICAL And ECONOMIC SUBSTANTIATION: the Customer himself defines necessity of investments, but

the data can be given by Expert-

MANAGERIAL ENGINEERING: Management of the project is carried out by the Executor, but the Customer creates

the service of its own, which works as Technical customer in the structure

BASIC and DESIGN ENGINEERING: the Executor does everything, considering wishes of the Customer, which is

in charge for maintenance

PROCUREMENT And LOGISTICS: the Executor delivers everything, considering wishes of the Customer

CONSTRUCTION ENGINEERING: Construction is conducted by the Contractors coordinated by the

Customer

PUTTING INTO OPERATION: the Customer starts up the object by its own personnel under direction of Executors

with transfer for maintenance

OPERATION: the Executor trains the personnel of the customer and transfers the management of the object to

customer

LIQUIDATING ENGINEERING: the Customer projects itself, outsourcing of special sections

I

F

BP

PM

E

P

C

OC

O/T

DC

Contact structure of the Customer of 1-st type - the Active Professional

CLIENT CONTRACTOR

Contact structure of the Customer of 2-nd type - the Active Nonprofessional

CLIENT CONTRACTOR


FACTORS OF CONTRACT STRATEGY: ENGINEERING ENGINEERING And TYPE of the CUSTOMER: PP and PN.

I

F

BP

PM

E

P

C

OC

O/T

DC

CONCEPTUAL ENGINEERING: the Customer does itself, can give for outsourcing special sections


TECHNICAL And ECONOMIC SUBSTANTIATION: the Customer himself defines necessity of investments and risks

MANAGERIAL ENGINEERING: the Client employs the independent expert for the control of work of Executors

BASIC and DESIGN ENGINEERING: the Customer carries out the base project itself , Executors can do the working design

PROCUREMENT and LOGISTICS: the Executor offers the Suppliers, and itself is responsible for logistics


PUTTING INTO OPERATION: the Customer authorizes Executors and experts for start-up

OPERATION: the Executor himself prepares the personnel for management in the future and transfers management of object

LIQUIDATION ENGINEERING: the Owner invites experts, outsourcing of special sections

I

F

BP

PM

E

P

C

OC

O/T

DC

I

F

BP

PM

E

P

C

OC

O/T

DC

CONCEPTUAL ENGINEERING: the Customer employs the qualified Adviser and sets requirements

FINANCIAL ENGINEERING: the Customer finds financing, except for cases of " Speculative and Concession Development

FEASIBILITY REPORT: the Executor carries out the project, the Client if it is necessary, employs the Adviser

MANAGERIAL ENGINEERING: the Executor does. The customer can involve the independent expert to report the work of

Executors

BASIC and DESIGN ENGINEERING: the Executor does the base project, Coauthors can do the equipment design

PROCUREMENT and LOGISTICS: the Executor offers the Suppliers, and itself is responsible for logistics


PUTTING INTO OPERATION: the Executor oneself organizes start-up and authorizes Coauthors

OPERATION: the Executor oneself prepares the personnel for management in the future and transfers management of object

LIQUIDATING ENGINEERING: the Owner invites experts, outsourcing of special sections

I

F

BP

PM

E

P

C

OC

O/T

DC

CLIENT CONTRACTOR CONTRACTOR CLIENT

Contact structure of the Customer of 3-d type - the Passiv Professional Contact structure of the Customer of 4-th type - the Passiv Non-Professional


FACTORS OF CONTRACT STRATEGY: ENGINEERING TRANSITION FROM COMPLEX КОМПЕТЕНЦИЙ TO CONTRACT MODEL

The Passive Nonprofessional Customer (PN): LS

The Passive Professional customer (PP): TP

The Active Nonprofessional Customer (АN): MV

The Active Professional Customer (АP): CF

Co

mp

etit

ive

neg

oti

atio

ns

Compensation of expenses

The

ten

der

se

lect

ion

3 4


Method of estimation of cost of the contract

Met

ho

d o

f a

cho

ice

of

the

Exe

cuto

r

2 1

ENGINEERING is a science and art of extraction of

practical benefit from pure scientific knowledge, such as physics or chemistry for the purpose of use of them

for creation of new buildings, constructions, the

enterprises, factories, machines and mechanisms

2-nd Stage-by-stage step of formation of contract strategy in view of engineering competencies


FACTORS OF CONTRACT STRATEGY: ENGINEERING STATIC AND DYNAMIC THE COMPETENCIES.

Classification of Customers

Engineering competencies

Static

Dynamic

Factors of contract model

Engineering competencies

Desire to have competencies at the

end of the project

The concept of the early start

The concept of the partner contract

Presence of competencies at the beginning of the

project

Dynamics of competencies of the Customer in the

project

Concept Open Book

Formulas of the contract

Classification of Contracts

INVEST-BUILDING ENGINEERING is a professional enterprise activity on

granting to Customers of the complex engineering services

including modelling of technological processes, designing of buildings and constructions, preparation,

maintenance and technical support of process of construction,

supervision of erection, installation, startup-adjustment and operation of industrial and economic objects.

Duality of engineering as factor of contract strategy

THE ENGINEERING COMPETENCE is an ability to create a new intellectual product on the basis of last

achievements of a science limited by established norms of safety and legislative restrictions, suitable

for target of commercial use in invest-building projects

THE COMPETENCE is a skill level of the company or the expert, sufficient for creation of the product demanded in the market and guaranteeing of conformity of quality

of the offered product to the market expectations.


FACTORS OF CONTRACT STRATEGY: ENGINEERING THE ACCOUNT OF TRANSFER OF THE ENGINEERING COMPETENCE IN THE CONTRACT MODEL.

The CUSTOMER employs the EXECUTOR without engineering

competences and all works accepts oneself

of

The CUSTOMER employs the EXECUTOR with engineering

competences and the EXPERT for the purpose of estimation of its

competences and taking-over of works

The CUSTOMER employs the EXECUTOR with engineering

competences and the Adviser for the purpose of estimation of its

competences, but the result accepts oneself

The CUSTOMER employs also the EXECUTOR without engineering

competences and the EXPERT with engineering competences for

acceptance of works

It is

no

t d

eman

ded

Is available

It is

dem

and

ed

3 4

Is not available

The engineering competence of the Customer

The

engi

nee

rin

g c

om

pet

en

ce o

f th

e C

on

trac

tor

2 1

Formula-1: Customerr-Builder

(engineering) ↔ Group of executors without

engineering

Formula-2: Builder ↔ ТЗ (ЕРСМ at

Risk) (engineering) + Group of executors without engineering

3-rd Integration Step of Contract strategy - the account of transfer of engineering

Formula-3: Customerr-Builder + Adviser (engineering)

↔ Group of executors (engineering)

Formula-4: Builder + ТЗ (ЕРСМ for Fee) (engineerig) ↔

ЕРС or Group of executors

(engineering)


FACTORS OF CONTRACT STRATEGIES: THE CONCEPT OF THE OPEN BOOK. THE MOST WIDESPREAD APPROACHES.

Case of realization of the project when at a starting phase there is no time for gathering

information about expenses when the final budget of the project is unknown

yet by virtue of presence of the

factors which doesn't allow to define

precisely profitable base. In this case

designing and construction is conducted by a

principle of granting to all participants of all "fair" expenses

who are approved by the Customer.

The uncertainty of the price

The uncertainty of the term

Case of realization of the project when at a

starting phase it is impossible to find the technological decision or this decision is not approved and terms are not confirmed

technically, when final term of realization is unknown by virtue of

presence of the factors which are not allowing

precisely to define terms of delivery of

decisions. In this case the customer

coordinates risks of contractors on the

basis of "fair" actual expenses.

Projects, profitableness of which scienter

exceeds any costs, for example, beautification

of deposits with the proved stocks exceeding

the investments ten times.

The Projects of exclusive development, a circle of buyers and consumers

of which is precisely certain and the price is

coordinated also.

Projects, profitableness of which is caused by tax

efficiency from development of

infrastructure: roads, engineering constructions

of the general using, a transport and logistical

infrastructure, etc.; Projects, profitableness of

which is guaranteed by virtue of the state

guarantees according to venture investments and

socially responsible investments.

Time factor is the primary factor of the project which

define the term of its implementation. For

example, it can be any protective and other

constructions, startup of which exert influence on

safety of cities and groups of the population. Political

factors - construction of object provides global and local safety, its urgent and

early construction is in itself the political project.

Infrastructural projects - projects, terms of

realization of which do not keep within frameworks

of the investment analysis or typical business-

planning. They are long-term projects with

attraction of megainvestments in the future over a period for

some years.

Classification of approaches of the Open Book


The concept of partnership

The guaranteed profitableness

Secondariness of profitableness

Force-majeur objects

Strategic objects

Profitableness from indemnifications

Profitableness from sales

The reasons of occurrence of attitudes in the concept the Open Book


FACTORS OF CONTRACT STRATEGIES: THE CONCEPT OF THE OPEN BOOK. THREE TYPES OF CONTRACTS IN PARADIGM OF THE OPEN BOOK.

The decision on start of the project before reception of the information on expenses

- " Opening of the Book "

Contract modelling within the limits of concept Open

Book: contracts before closing the book and

transfer contracts

The moment of " Closing of the Book " - a point of

gathering and the statement of the final budget of the project

Contract transmodeling of the contracts for

transferring in connection with approaching of the event of "Closed Book"

Modelling of contracts after situation Closed Book, i.e.

according to standard procedure of the analysis of

stages IBP

OPEN BOOK - The concept of realization of the invest-building projects, which is presumed the beginning of the works on realization of

the project before reception of final representation, as about its design as well as about the budget of investments, in connection with objective impossibility to carry out the works in conformity with classical sequence of stages of invest-

building process

Stream of changes of the approach to the contract modelling in the concept of the Open Book

Prevailing risks of the Customer before «Closing of the Book» and after

The stage of the Open Book The stage of the Closed Book


FACTORS OF CONTRACT STRATEGIES: CONCEPT OF THE OPEN BOOK.

VARIANTS OF THE TRANSFER CONTRACTS.

Transformation of the risks of the Customer in the

contract policy

Separate works in a stage

The separate stage ИСП

The set of stages ИСП

"

Association of stages on a turn-key basis

Compensation of expenses (cost + fee)

OB to Cost+fix

OB to Cost+fee+reward

Редко применим

Can't be used

Individual quotations (measure & value)

OB to Scope of Works Price

OB to Complete Work Price

OB to General Contractor Price

It is seldom applied

Target expenses (target price)

It is seldom applied

OB to General Price

OB to EPCM

OB to Partner contract

The lump-sum price (lump sum)

Не применим

It is seldom applid

OB to EPC, PCM, CPM

OB to LSTK Blue Dream

of Contractor

Blue Dream of Client

Reduction of the risks of the Customer

Re

du

ctio

n o

f th

e ri

sks

of

the

Cu

sto

me

r

Step 4 in contract strategy - the account of transformation of the contracts after stage the Open Book


THE FORMATION OF THE CONTRACT STRATEGY: INTEGRATION. THE ACCOUNT OF ALL FACTORS OF THE FORMATION OF THE MODEL.

THE CONTRACT

MODEL OF PROJECT

REALIZATION

STEP-1: CLASSIFICATION OF CLIENTS

RESULT: the General approach to

pricing and a choice of the executors

Engineering of the Executor

Engineering is not transferred

The concept of the partnership

The future Operator of the Object

STEP-4: OPEN BOOK

RESULT: Updating of

complex contracts in view of the transferring

STEP-2: ENGINEERING

RESULT: Division of stages ИСП of engineering and updating of the step-1

STEP-3: THE DYNAMICS OF COMPETANCIES

RESULT: Specification of model of stages ИСП and their integration

into complex contracts

Development is transferred


Engineering of the Customer

The specialization of the object

Factors of the formation of the Contract model of the project


COMPLEX CONTRACT MODELS OF REALIZATION IBP

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F

BP

PM

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C

OC

O

DC

CONCEPTUAL ENGINEERING: the Customer carries out the project (ТЗ), but itself ТЗ is carried out by the professional

adviser.

FINANCING: the Customer finds financing and credits

The FEASIBILITY REPORT: the Customer himself defines necessity of investments, but the decision is based on data of

the Executor

ORGANIZATIONAL ENGINEERING: the Customer employs the professional controller to control the course of realization of

the project, but the part is carried out by the Executor

BASE And DESIGN ENGINEERING: It is transferred the executor completely and is accepted by the agreement with

the expert

PROCUREMENT And LOGISTICS: the Contractor delivers the equipment coordinated with the expert and ТМЦ

INDUSTRIAL ENGINEERING: Генподрядчик completely operates construction on the object

PUTTING INTO OPERATION: ЕРС- подрядчик starts up object entirely, but under the supervision of the trained personnel

of the Customer

OPERATION: the Customer starts work and conducts management of the object

LIQUIDATING ENGINEERING: the Customer projects oneself, outsourcing of special sections

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F

BP

PM

E

P

C

OC

O/T

DC

I

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КОНЦЕПТУАЛЬНЫЙ ИНЖИНИРИНГ: Заказчик делает проект ТЗ, но само ТЗ делает профессиональный

консультант

FINANCING: the Customer finds financing by means of advisers

The FEASIBILITY REPORT: the Customer himself defines necessity of investments, but the decision is based on data

of the Executor

ORGANIZATIONAL ENGINEERING: the Customer involves the EPCM contractor for controlling a course of realization of the

project

BASE And DESIGN ENGINEERING: It is transferred to the executor completely, is accepted in coordination with the

Customer

PROCUREMENT And LOGISTICS: ЕРСМ-the contractor delivers the equipment coordinated with the Client and

ТМЦ, by means of contractors also.

INDUSTRIAL ENGINEERING: the EPCM contractor completely operates construction on the object

PUTTING INTO OPERATION: The ЕРСМ contractor starts up object entirely, trains the personnel of the Customer and

involves it in start-up

OPERATION: the Customer starts work and conducts management of object

LIQUIDATING ENGINEERING: the Customer projects oneself, outsourcing of special sections

I

F

BP

PM

E

P

C

OC

T

DC

Model of realization of projects through complex the ЕРС-contract Model of realization of projects through complex the ЕРСM-contract

CLIENT CONTRACTOR CLIENT CONTRACTOR


COMPLEX CONTRACT MODELS OF REALIZATION IBP THE ACCOUNT OF FEATURES OF THE CHOICE OF THE EXECUTOR FOR COMPLEX THE ЕРС-CONTRACT.

Highly specialized or exclusive objects of

various purpose: sports complexes, ice

arenas, stables, hippodromes,

autodromes, hotels, residential areas and

nondomestic buildings of complex

architecture.

The architect (Designer)

The designer The technologist

Projects of the companies having exclusive right on designing of such

objects, and also by virtue of narrow specialization of design decisions:

military, confidential and nuclear objects

of the state infrastructure

Industrial objects which demand to be bound to initial data for development of

technological projects: the

Chemical industry, даунстрим,

metallurgy, food, building materials, etc. manufactures

Can be used for designing and СМР is

attached to the concrete basic

equipment: turbines, reactors, furnaces

and other exclusive equipment from the

list of manufacturers. They are production

units and power stations.

Can be used, when designing and СМР takes less than 20 %

of cost of the project: sectional-modular objects, modular

mobile facilities and temporary buildings and constructions, mobile technics,

complex technological

complexes and units.

Can be used, when the most part of the contract consist of civil and erection works, delivery of building units and

materials, standardized design:

roads, жильё, service, garages,

networks, warehouses etc.

The capital equipment

Complex deliveries

Construction and installation

Construction

Procurement

Engineering

The key competence of the ЕРС-contractor

Key competence of the ЕРС-contractor as the factor of the selection of the Executor


COMPLEX CONTRACT MODELS OF REALIZATION IBP COMPARISON of the RUSSIAN TECHNICAL-CLIENT with the ЕРСМ-contractor

The contractor

Ru

ssia

n

The customer

Wes

tern

Representative

The

Co

nce

ptu

al m

od

el

The customer - the Builder The Group of

Executors

Builder The General customer

The Group of Executors

Contractors

EPC-contractor

Technical customer

custome

r Builder Technical customer

Client+ Expert-

Consultant

EPCM for FEE

Client-

Contractors Client EPCM at

RISK

Analogy of the Technical Customer with the ЕРСМ-contractor in contract relationships


COMPLEX CONTRACT MODELS OF REALIZATION IBP CONTRACT HIERARCHY AND ЕРС-SUBCONTRACT.

Technical supervision

Subcontractors for constuction

Suppliers of the equipment

Suppliers of materials

Suppliers of the equipment

OHSAS


Suppliers of the nonbasic

equipment


The designer for the local

binding

Suppliers of materials

Designers for typical decisions

The Technical-Client (ЕРСМ -Contractor)

THE BUILDER (THE CLIENT-BUILDER)

The block of a direct control of construction, for example, construction of a factory

The Block of ERS- subcontractors (staff - engineer)

Gen. contractor

Субпроектировщики

The designer

subcostractors

subЕРС in technology

subЕРС in engineering

subЕРС for the Construction

subЕРС for the Equipment

Functions of the Russian the CLIENT- BUILDER or the CLIENT + the ENGINEER-MANAGER

Management of start-up

The ЕРСМ - contractor The investment

adviser Technical supervision, quality

assurance and safety The technical

adviser

The scheme of use ЕРСМ and ЕРС - contracts in the large project

Problems of terminological perception of the Russian Technical Customer and the ЕРСМ - contractor


CONTRACT STRATEGIES of REALIZATION of NEW PROJECTS OF NPS VERIFICATION OF PROJECTS ACCORDING TO TYPES OF CUSTOMERS

The CUSTOMER of type AP

. The customer is guided by local requirements

and standards and itself prepares ТЗ on the

project. The complex project with equipment

of Росатома and other suppliers, with the

complex integration


The professional

Customer having not only developed

structure of capital construction, but it constantly maintains

objects of nuclear powers of various types that is why it operates

the project in full.

The CUSTOMER of type PP

. The professional

Customer is compelled to adapt own

engineering for the developed standards of

the country and involves for this purpose

local executors, including in construction


Rosatom builds by using

own engineering with adaptation to the

international standards and local conditions. Operation through

training of local personnel, model

ВОО.

The CUSTOMER of type AN

The nonprofessional

Customer interested in business administration

of the production by itself in the future. Builds, most likely,

under the international standards, purchases

the engineering and the training.

The new design of the atomic power station

The country with the developed nuclear engineering

In Russia

The customer of all projects - Concern "ROSENERGOATOM"

The country without own nuclear engineering

Abroad

The commercial local Customer

The customer is the enterprise GK ROSATOM

The customer is the enterprise GK ROSATOM

The commercial local Customer

Classification of designs of the atomic power station according to the types of Customers

Accuyu Khankh

ikivi

Belarus

China

Russia


COMPLEX CONTRACT MODELS OF REALIZATION IBP REALIZATION NEW PROJECTS OF NPS FOR CLIENT TYPE AP IN RUSSIA.

COMPLEX CONTRACT MODELS OF REALIZATION ИСП

Russian (The block of generation and delivery of capacity)

Russian (Nonbasic constructions)

Russian - the basic pool (Nuclear island, etc.)

Are possible Foreign (in the absence thereof of the analogues)

commissioning

GC ROSATOM

Center of CM on a site with blocks according to directions of

management

Russian (The block of generation and delivery of capacity)

ROSENERGOATOM – CLIENT (AP) and future operator

Expert engineering company GK ROSATOM is on the contract for the purpose of control of realization of the project, the budget and norms.

Russian PMC - contractor (one of AEP) as the enterprise of ROSATOM

Subgeneral contractors and mini ЕРС-

contractorsThe Russian

Suppliers

Subgeneral and mini ЕРС-contractors

ROSENERGOATOM filial The customer on the

construction site

The scheme of realization of in-Russian designs of the atomic power station through the quasi-ЕРСМ-contract


COMPLEX CONTRACT MODELS OF REALIZATION IBP REALIZATION OF FOREIGN PROJECTS OF NPS TROUGH DEVELOPING SCHEMS.

•Build - Operate - Transfer

•Построй - Эксплуатируй - Передай BOT •Build - Own - Operate - Transfer

•Построй - Владей - Эксплуатируй - Передай BOOT •Build - Transfer - Operate

•Построй - Передай - эксплуатируй BTO •Build - Own - Lease - Transfer

•Построй - Владей - Сдай в аренду - Передай BOLT •Build - Transfer - Lease - Operate

•Построй - Передай - Арендуй - Эксплуатируй BTLO •Lease - (Re)Build- Operate

•Арендуй - Перестрой - Эксплуатируй LBO/LRO •Build - Transfer - Maintenance

•Построй - Передай - Обслуживай BTM •Buy - (Re)Build - Operate - Transfer

•Выкупи - Перестрой - Эксплуатируй - Передай BBOT/BROT

•Build - Own - Lease

•Построй - Владей - Сдай в аренду BOL

•Lease - (Re)Build - Operate - Buy

•Арендуй - Перестрой - Эксплуатируй - Выкупай LBOB/LROB

•Build - Own- Operate

•Построй - Владей- Эксплуатируй BOO

•Buy - (Re)Build - Operate

•Выкупи - Перестрой - Эксплуатируй BBO/BRO

ВОО is the most suitable model of realization of designs of NPS abroad

Models of concession development for implementation of projects


COMPLEX CONTRACT MODELS OF REALIZATION ИСП PROJECTS REALIZATION OF NEW NPS ABROAD BY THE TYPE PP FOR ВОО.

Russian (Nuclear island)

Аsset - Holder From GC «ROSATOM»

Foreign (The block of generation and delivery of capacity)

Foreign (Nonbasic constructions)

Russian (Nuclear island)

Foreign (other)

Suppliers

Foreign (adaptation of the project under local requirements)

Center of CM on a site with blocks according to directions of

management

ROSENERGOATOM filial The customer on the

construction site

The joint Engineer-adviser of the project - the coordination of the

project in local bodies

Russian ЕРСМ at the Risk-contractor (one of AEP)

The Chief-Operator - CONCERN ROSENERGOATOM

Expert engineering company GK ROSATOM on the contract for the

purpose of controlling of realization of the project, the budgeand norms

The local expert in local specifications

The LOCAL PROJECT BUILDER Operator in the Future

Russian Generaldesigner and

coauthors

Subgeneral contractors and the mini ЕРС - contractors

The scheme of realization of foreign projects of new NPS according to the scheme ВОО


COMPLEX CONTRACT MODELS OF REALIZATION IBP PROJECTS REALIZATION OF NEW NPS ABROAD FOR THE TYPE AP.

Thanks for attention!

Contact: [email protected] mobile: +7 (903) 799-08-98

Russian (nuclear island)

The LOCAL CUSTOMER -

the Future Operator

Joint venture - the control of the project, building nuclear audit

and supervision

Foreign (The block of generation and delivery of capacity)

Foreign (Service and other constructions)

Russian (nuclear island)

Foreign (The Others)

Аsset - Holder from GC ROSATOM

The local expert certified by the another state

Russian Adjuster and foreign coauthors

Russian The ЕРС - countractor (ASE, AEP or Leader ЕРС - the Consortium)

External

Shareholders

Subgeneralcontractors and mini ЕРС - contractors

Suppliers

Staff of construction on a platform with blocks according to directions

of management

Expert engineering company GK ROSATOM on the contract for the

purpose of controlling of realization of the project, the budget and norms

The chief-Operator - CONCERN ROSENERGOATOM

Russian Generaldesigner and

coauthors

Foreign subdesigners (adaptation to the local system)

The scheme of realization of the foreign projects of new NPS for the Client of type AP with Partnership

mailto:[email protected]

Malakhov Vladimir. Presentation for IAEA Technical Meeting on Becoming a Knowledgeable Customer in Obninsk 07.04.2014

Presentations & Public Speaking

malakhov vladimir

dba conference

atomic power

adequately

owner invites

active nonprofessional

enterprise

dc conceptual