Visaginas nuclear power plant:aspects of practical preparation -seminar

11th of October 2012Jukka Hellgren

Oy Culmentor Ltd.

© Oy Culmentor Ltd.

Participation of Finnish construction companies in OL 3 project - plant provider's views

Oy Culmentor Ltd• Established 1999

• Main focus for R&D funding services

• Main office location in Oulu, Finland and local office in Skellefteå Sweden

• Clients; public and private development organizations, private big and SME-companies, universities etc.

Jukka Hellgren• Managing Director of Oy Culmentor Ltd.

• Civil engineering background; several power stations, dams constructions, bridges etc

• Nuclear experience: During the years 2004-2006 working to Areva for civil works procuramentdepartment; special task to define Finnish construction companies to involve to the OL 3 project

Nuclear project and actors in Finland

Normal investment projects

Quality

Costs Time

Ideal Investment

Quality

Costs Time

Diffenrent type of investment projects

Nucler-project

Office and hause projects

Industrial -project

STUKK• Radiation and Nuclear Safety Authority

• 350 professionals

• Goal: minimize the harmful effects of radiation

• Formulates the safety requirements concerning the use of nuclear energy in Finland.

• Issues detailed regulations - YVL guides - that apply to the safe use of nuclear energy

• Licensing the use; Principle decision, Construction license and Operation license

• Licensing, approving, verification and inspection

Turbine and Nuclear islandPartners in Finnish nuclear projects

STUKRadiation and Nuclear

Safety Authority, Finland

OWNER(like TVO, Fortum,

Fennovoima)

Plant provider(like, Areva, Toshiba, Hitatchi

etc)

Approval

Suppliers(civil works, piping,

equipment etc)

Plans & Reports Approval

Plant providers procurament process

Process for Safety class 2 constructions based on YVL guide

Plan

Approval

Approval

RfC

Stukk

Owner

Plantprovider

Plan

Approval

Approval

Plan/Approval

Approval

Approval

Approval

Plan

2-3 w1-2 w1-2 w1-2 w1-2 w6 m1-6 m

Time

Main contractor

Subcontractor

Procurament process of plant provider

Exe

cutio

n

Basic Design Detail Desing Concreting planDesingprocess

Plant contract

Mobili-sation

Contract negoatation

Main Contract preparation

Offering time

Preparation on site

Request for quentation Tender

Contract

Plan

Approval

Approval

RfC

Stukk

Owner

Plantprovider

Plan

Approval

Approval

Plan/Approval

Approval

Approval

Approval

Plan

2-3 w1-2 w1-2 w1-2 w1-2 w6 m1-6 m

Time

Main contractor

Subcontractor

Procurament process of plant provider

Exe

cutio

n

Basic Design Detail Desing Concreting planDesingprocess

Mobili-sation

Contract negoatation

Main Contract preparation

Offering time

Preparation on site

Plant contractRequest for quentation Tender

Contract

Process for Safety class 2 constructions based on YVL guide

Plant supply contractKSEGeneral Conditions for consulting

General conditions structureFinnish project Nuclear project

Owner

Contractor consultDesingner

Construction company

YSE General conditions for building contracts

Owner

Plant suppliers own contract conditions

Plant supplier

Construction company

Engineering Procurament

What – if you want to take part of the plant provider

procurement process

RFQ• Based on Plant supplier’s own general conditions

• Big company contract conditions and made for Global use

Contract proposal is only a proposal

You can always negotiate and effect to the final contract

Worth Noticing: Both parties williness to make the deal !!!!

RFQ• Reason of time schedule and process always based

on mainly basic design drawings and documents

• Final working methods and quantities of work is missing

Based on unit prices

Not all units even are defined in the RfQ

Worth Noticing: Difference of measurement methods of quantities !!!!

RfQ• Even English is project languages, all persons are

not native problems in written documents on RfQ

• Structure of the RfQ is different than most of the domestic RfQ’s

Open mind for changes and for new working methods

Worth Noticing: English languages' knowledge and understanding of plant providers culture and working methods

Preparation of the Tender• Make it as a project

• Start on earlier enough

• Reserve the recourses, human and money

• Contact to Client, discussion and meeting with them

Need of commitment for tendering by top management of the company

Worth Noticing: Recourses for tendering; people, time, knowledge and money

Preparation of the contract• Conditions are central part of the contract and they are

made by the client

• Concentrate to the conditions and use best available experts to comment the conditions as a part of your tender

Include your own proposal/comments to the conditions

Worth Noticing: Contract conditions must read and comment as a part of your tender, not after your tender delivery

Thank you

© Oy Culmentor Ltd.

Jukka HellgrenMananging Director

Oy Culmentor Ltd.Rautionkatu 2FI-90400 Oulu, Finland

GSM +358 (0)40 760 1447Tel. +358 (0)10 7340 600

jukka.hellgren@culmentor.com www.culmentor.com