Stuart Jordan

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Wind Farm Construction in Mena Region

Wind Magrheb Conference – 22 May 2013

Stuart Jordan – Partner, SJ Berwin LLP, London

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• Basic dynamics of construction projects

• Application of basic principles in wind farm construction

• Factors which drive choices in project delivery

• Single contract models

• Multi-contract models

• Application of these choice factors in MENA

• Conclusions

Objectives

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Construction Universal Factors

Time

Cost Quality

(Performance)

THE FIRST TRADE OFF

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The Second Trade Off

Turbine supply

+ Balance of plant

+ Construction Services

+ Management Services

“EPC”

“Guaranteed

Maximum Price”

Nothing fixed Everything fixed

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• Time

• Physical constraints-site

• Funding (conditions and timing)

• Resources

• Complexity and novelty

• Sector

• Geography (legal, regulatory, land rights)

• Project size

• Appetite or approach to risk

• Economic cycle

Construction Change Factors

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• Traditional

• Design-and-construct

• EPC

• Standard Forms

Single Contract Models

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The EPC Model

OFFTAKERS

OWNER

FEED CONTRACTOR

EPC CONTRACTOR

EPC CONTRACT STRUCTURE

SUPPLIERS PACKAGE/TRADE

CONTRACTORS

PROCESS

ENGINEER

Contract Administrators

Contract

FUNDERS

Management

Design responsibility

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• A generic “Construction Contract”

• A Turnkey Contract

• Where does it sit on the line?

• Implementation risk?

• Performance risk?

EPC Contracts

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• EPCm

• “PMC”

Multi-Contract Models

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EPCm Contracting

OFFTAKERS

OWNER FEED CONTRACTOR

EPCM CONTRACTOR

(WHOLE PROJECT)

EPCm CONTRACT STRUCTURE

TRADE

CONTRACTORS

Contract

FUNDERS

Management

Design responsibility

PROCESS

ENGINEER

TRADE

CONTRACTORS SUPPLIERS

SUPPLIERS

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• Location – construction, operation &

maintenance

• Connection. Transmission

• Site spread

• Land rights

• Governing law and supervening law

• Contractor market. Local, regional

Applying the Principles in MENA Region

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www.sjberwin.com

© SJ Berwin LLP 2012 Stuart Jordan 80746067