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Energy from Waste and Low Carbon Energy Capability Statement

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Our capability statement for the development of Low Carbon Energy Generation and Energy from Waste projects on a global scale

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Energy from Waste and Low Carbon Energy Capability Statement

  1. 1. Energy & Utilities – Low Carbon Energy Generation & Energy from Waste
  2. 2. CONTENTS 1. DAVIS L ANGDON o ABOUT DAVIS LANGDON 4 o OUR ENERGY SECTOR 5 o OUR UK OFFICE LOCATIONS 6 o OUR GLOBAL REACH 7 2. KNOWLEDGE o ENERGY SECTOR SERVICES 10 o OUR RANGE OF SERVICES 11 o SOLUTIONS FOR THE LOW CARBON ENERGY 12 AND ENERGY FROM WASTE MARKE TPLACE o DETAILED SERVICE OFFERINGS 13 3. EXPERIENCE o CLIENTS 30 o EXPERIENCE 31 4. PEOPLE o WHO TO CALL 40 1
  3. 3. 1.1_ABOUT DAVIS LANGDON Dav is Langdon is a global construction consultancy, prov iding managed solutions f or clients inv esting in inf rastructure, property and o Our Energy Sector construction, worldwide. o Our UK Offices It is the recipient of a number of industry awards o Our Global Reach including being v oted Top International Construction Consultant f or fifteen successiv e y ears and was named Building magazine’s Construction Consultant/Surv ey or of the Y ear 2008. The f irm was named one of the Sunday Times ‘100 Best Companies to Work For’ in last y ear’s league table, jumping 10 places f rom 29th to 19th on the list and the only construction consultancy to be included in the top 50. The f irm has in excess of 5200 staff in some 105 offices world wide. 4
  4. 4. The Energy Team As an integrated team of engineering energy prof essionals and our specialists serv ices group, 1.2_OUR ENERGY SECTOR the Energy Team, prov ides a range of serv ices expressly for clients either funding or inv esting in energy generation, transmission and distribution businesses. Our prov en track record in the successf ul deliv ery Our energy sector groups of large (>£500M), complex, high prof ile, high risk and innov ativ e projects is v ery relev ant to this sector. Leveraging Experience from The Business Our team hav e access to a f urther staff resource of some 1800 within the network of 19 UK Off ices, expanding to some 2400 within the Europe and Middle East f orum of 30 off ices. Furthermore, Dav is Langdon & Seah International as an international partnership is supported by a staff resource of some 5500 indiv iduals across 106 offices. Focussing on the identif ication, quantif ication and ev aluation of project and business risk, our inv olv ement will improv e project certainty by Identify ing early, all factors critical to a successful outcome Recommending necessary saf eguards to mitigate risk Monitoring the on-going management / mitigation of risk Reporting and solv ing problems bef ore they become a threat 5
  5. 5. 1.3_OUR UK OFFICE LOCATIONS Davis Langdon is strategically placed to advise your proposed program of Low Carbon Energy Generation and Energy from Waste projects across the UK and Ireland 6
  6. 6. 1.4_OUR GLOBAL REACH Our network of global offices, provides international reach for advisory services to the Low Carbon Energy Generation and Energy from Waste marketplace 7
  7. 7. 2.1_ENERGY SECTOR SERVICES The Dav is Langdon energy sector team is a product Service Offer: Tactical of sector specific experience and our corporate Strategic Utilities Solutions – Adv isory serv ices knowledge. It is this cross fertilisation of ideas and Our offering to the energy sector ranging f rom utilities procurement to costing and best practices from all our projects with the managing utility div ersions goes beyond that of traditional experience of energy prof essionals that we believ e to be our principle diff erentiator. ESCo & MUSCo Solutions – Balancing the project and cost management. It is commercial and communal needs of the Service Offer: Strategic categorised as either: stakeholders Program / Project Management – Includes Project Controls and Programme Gov ernance which can be Engineering Services – Standalone technical o “Strategic”, where we bring to deploy ed as indiv idual or integrated modules. consultancy that capitalises on our experience and knowledge of the sector bear our corporate knowledge Cost Management – Including Cost Planning, Benchmarking, Inf lation/Construction Economics and experience on a continuous trends and f orecasts, Value Analy sis, Lif ecy cle Asset Maximisation – Business case dev elopment serv ice encompassing tariff and rev enue modelling role. Costing, Procurement and Post Contract Cost f or distributed heat, cooling and energy schemes. Management serv ices o “Tactical” where we deploy Funders Technical Advisory / Due Diligence - Legislative Guidance – Adv isor serv ices f ocused specialist teams of highly Helping f unders to establish the v iability of the on utility connection costs, rev iewing the charges experienced and qualified staff inv estments and identifying opportunities to cross lev ied by statutory undertakers and compliance to sell the macro risk their statutory obligations. to focus on one particular area of the project. Global Sourcing / International Procurement – Ratings - Consultancy agreeing local authority Identify ing where and when to procure f rom the rates f or petrochemical installations global marketplace whilst balancing macro risk f actors. Sustainability – Includes Lif e Cycle Analy sis, Low Carbon building Analy sis, Sustainable Inv estment Decisions, Future Proof ing Value Planning & Risk Management – Includes Enterprise or Project Risk Management Project Accounting - Auditing the link between project costs and accounts 10
  8. 8. 2.2_OUR RANGE OF SERVICES As a global construction consultancy we f ocus on deliv ery of the best outcomes f or Clients inv esting in construction and property . Our integrated approach to the Energy Sector include the f ollowing serv ices; 11
  9. 9. 2.3_SOLUTIONS FOR THE LOW CARBON ENERGY & EfW MARKETPLACE SP V Bid We hav e dev eloped the following solution off erings Support which are the most relev ant to the Energy f rom (PFI / PP P) Development ES Co Management & Waste and Waste marketplaces, lev eraging our Brokerage Support wide breadth of skills sets f rom across the business. Landfill Mining These solutions are designed around our clients > E fW >> Owners P roperty Representative aspirations and requirements, namely ; Development En ergy Mixed Use Grid D evelo per Dev elopment Connection Energy Solutions P rocurement Our Funde rs Solutions Waste Project Minimisat ion “Unlocking” Suppl y Strategy Ch ain Publ ic Was te Lenders TA Se ctor Infrastructure P roc urement (PFI/PPP) C ommercial Energy TA / & Publi c EPC Due De ve lop ers Support Techn olog y Diligence C ommercial isation 12
  10. 10. 2.4_ESTABLISHING THE BRIEF DLivering Success The DLivering Success Model • Cost inf ormation, external publications and client f ocused research including DLiv ering Success was dev eloped by Davis economic and market brief ings; Langdon in 2005 in the wake of a number of high prof ile construction project failures. To reinf orce its • Market brief ings f or sectors and ov erseas position as a world class f irm of Construction markets Consultants, Dav is Langdon dev eloped a serv ice to • Industry experts in Building Env elope Solutions, rev iew all major projects in which we were, or Construction Economics and Market Conditions hoped to be, inv olv ed to maximise the likelihood of enable y ou to prov ide an unriv alled lev el of industry a successf ul outcome both f or y ou and Davis insight f or clients Langdon. The DLiv ering Success process is included at the back of this document. Key benef its resulting f rom our DLiv ering Success serv ice: Stakeholder Engagement •Puts projects on the right footing f rom the outset Our Management Consultancy and Value, Planning •Enhances understanding of the project imperatives & Risk teams pref er the term “Stakeholder by the whole team Engagement” to “Stakeholder Management” because managing stakeholders is a purely •Imparts clarity, realism, commitment and mechanistic mindset and is unlikely to work. collaboration throughout the project team Engaging them through-out the lif etime of a •Identif ies focused, project specif ic activ ities to build programme enhances the collaborativ e ethos that on strengths and treat weaknesses Dav is Langdon pursues in its programmes. •Prov ides a means for the project team to resolv e Dav is Langdon has adopted the six stage Market Review any issues that are critical to success stakeholder engagement process identif ied by Dav is Langdon’s inv estment in Research and Market Managin g Successf ul Programmes (OGC). Identify - •Embeds the principles of good Project Gov ernance Intelligence is unique in our sector. Our Energy Sector Analy se- Def ine- Plan- Engage- Measure. We hav e dev eloped and hav e ref ined a v ery team in conjunction with our Prof essional Stakeholder mapping- identifying, analy sing, and successful f ormat for conducting a short, intensiv e Dev elopment team collaborate to prov ide: v isualising the stakeholders- is the first step of the workshop that addresses three primary questions; •Cost research and market intelligence with up-to-date stakeholder engagement strategy . We hav e Why, What and How? to maximise the likelihood of market knowledge taken f rom a wide range of sources dev eloped tools and techniques to help you engage a successf ul outcome for y ou. – keeping y ou ahead of the market y our stakeholders in y our project/ programme. 13
  11. 11. 2.5_FEASIBILITY Operational Costs – Asset Maximisation Capital Cost Forecast - Cost Management By linking in with our clients we will be able to adv ise Prov ides clients assurance of their financial risk, Benchmarking on the most effectiv e modelling of operational costs by ensuring effective cost planning and budget control, Benchmarking is the comparison of a proposed the utilisation of our Engineering Serv ices team. best v alue for money and ultimately, sustainable scheme with other schemes of similar type and class, prof itability. In order to maximise the opportunities that may exist looking at cost and value, and the driv ers of both. within certain dev elopment projects, Dav is Langdon For any range of projects to be f inancially can prov ide a business case dev elopment serv ice successful, costs (and risks and opportunities) must Cost Planning encompassing tariff and rev enue modeling f or be clearly and concisely understood by the whole distributed heat, cooling and energy schemes. The Team – including the stakeholders of the project. During the course of sketch design, the cost model aim of the rev iew is to establish the lev el of potential We believ e that it is only by the production of needs to be dev eloped into a detailed Cost Plan, return on asset that f unders can achiev e by managing, detailed cost estimates at the earliest stage of the itemising the approximate quantities and rates of all owning and operating assets. project, which are then regularly updated, that the elements of the scheme. design team can be expected to design within a budget and produce the best possible building at the minimum cost and maximising design efficiencies. Cost Modelling and Key Cost Drivers At the inception stage of the project the role of cost modelling is twof old. It needs to be a ref erence point f or realism, looking at the key cost and v alue driv ers of the scheme: site abnormals; plan efficiency, shape, height and orientation; structural f orm and system; specif ication choices; env ironmental control etc – all considered collectiv ely. Structures, env elopes and env ironmental control systems work together, and the identif ication of the best option will depend upon an analy sis of all alternativ es, and the way that each part of the desired specif ication impacts upon the others. 14
  12. 12. 2.5_FEASIBILITY Life Cycle Costs Financial Modelling The scenarios we model usually look at contingency management and establishing that there is suff icient Whole lif e costing (WLC) and life cycle costing (LCC) The total system cost is a dimension that is key to the success of any inv estment strategy in the allowance f or this item along with material costs. are structured approaches to analysing costs and spend prof iles of assets, components, sy stems and/or energy sector. The illustration below details how the serv ices ov er an agreed period of time. WLC supply & demand can be modelled to prov ide addresses the total costs and economics of ownership greater f idelity on the earning potential of any new f rom inception to disposal, including LCC, whereas energy plant. By understanding the wider picture, LCC addresses solely the operational phase. The we can prov ide greater context to the numbers primary objectiv e of these methods of analy sis is to underpinning the inv estment. inf orm the user of options that can assist in making inf ormed choices which will ensure the deliv ery of a sustainable and cost effectiv e lif e strategy for a project. WLC, in particular the lif e cycle element, is of major signif icance as it inf orms the robustness of the phy sical elements of the project and the f unding prof ile f or f uture capital replacements. In cost benef it terms, this does not signify that the cheapest nor most expensiv e products or serv ices are necessarily the optimum choice. Analy sis through Dav is Langdon’s cost modelling approach will determine the best value option. Fai ure a l nd Consequ entia loss l total cost of owner ship Maintenan e c ost c Cost We are able to factor in materials price inf lation, currency exchange rates and other macro economic O PTIMU M dimensions, ov er changing time periods. We can Capi al cos t t model the S-Curv e of cashf low and bias it O perating c ost accordingly to the f ront end f or LIP’s in order to assess the potential v olatility in price of key items. 15
  13. 13. 2.5_FEASIBILITY We f ocus on planning at an early stage f or tax Business Case Production Tax, Capital Allowances and Enhanced Capital claims f or: Allowances Planning Our Business Improv ement team f ocuses on those • Capital and Enhanced Capital Allowances serv ices that hav e been ref erred to in the requirement Our objectiv e is to identify, analy se and adv ise on taxation liability and technical risks surrounding • VAT areas of ‘Strategy and management consultancy’ and construction projects, or the acquisition of existing ‘Business/corporate dev elopment’. We aim to improv e • International Tax Depreciation Allowances our client’s perf ormance through better strategy , assets. In this way, we are able to assist clients in reducing their tax on prof its. With Tax planning, we change, process and organisational dev elopment. Our work ranges f rom assisting clients in dev eloping can assist in the decision making process of strategies, usually with particular emphasis on the part balancing risk and reward. Cashflow Forecasting their built asset strategy aligns with the corporate Our experience enables us to agree claims at an strategy. optimum lev el. We do not, unless instructed To the majority of businesses in a competitiv e marketplace, “cashf low is king” and can materially Our consultants are trained and experienced in issue otherwise, take the easy option of submitting low claims that will be readily accepted by the HMRC. affect the return on inv estment of business identif ication, on data collection and analy sis, on Howev er, we are alway s conscious that capital v entures. working collaborativ ely with the client on problem allowances are only one tax issue, and we would solv ing and in the skills of presentation, report-writing Dav is Langdon hav e the tools and resources to and implementation planning. nev er compromise a client’s ongoing relationship f orecast cashf low of asset inv estment, utilising with the tax authorities. The Business Case should: different cashf low models whether either standard or bespoke to particular clients. •clarify the Client's needs and the context of those By prov iding eff ectiv e cashf low f orecasting into the needs in business terms; Financial Model, the v iability of a scheme can be •prov ide a vehicle f or agreement and understanding of determined, prov iding an understanding of the those needs within the business and by all capital expenditure liability a client take on through stakeholders; the inv estment. Ca sh F o l w 7 8 w e k - P r j c t d Mo n t y e oe e oe e hl 7 8 w e k - P r j c t d C u mu a t v e l i e •prov ide an early identif ication of the v iability of a £4 5 00 0 00 , , £4 0 00 0 00 , , project in terms of risk and opportunity; and £3 5 00 0 00 , , £3 0 00 0 00 , , •prov ide a basis against which to assess the v iability Cu u ati ve V u e a e Mo n l y V l u al £2 5 00 0 00 , , of the various options that will be generated during the th £2 0 00 0 00 , , m l £1 5 00 0 00 , , £1 0 00 0 00 , , Feasibility Stage. £5 00 0 00 , £0 09 l0 9 0 9 09 10 10 10 l- 1 0 10 ay- Ju - p- ov- Jan - ar - ay- Ju p- M Se N M M Se Dat e The advantages of early tax planning 16
  14. 14. 2.6_RISK MITIGATION & VALUE MAXIMISATION Value, Planning and Risk Management Risk Management The Value Plannin g and Risk Team prov ide a Our approach to Risk Management improv es Fine unique combination of business and project program or project teams’ conf idence that outcomes Tune Validate Need perf ormance improv ement adv ice, geared towards will meet or exceed expectations. prov iding certainty of outcome f or our Clients. Our We prov ide quantitativ e and qualitativ e Risk Optimise Optimise suite of serv ices help to add v alue and reduce risk Costs Costs Management as well as a Schedule Risk Analy sis Define by : def ining and articulating objectiv es; setting Project Project sy stem direction; improv ing deliv erability and eff iciency ; Select Options monitoring progress; and f ostering collaboration. Our main emphasis is to put in place the necessary activ ities to manage risk, and ensure that they are The Team can help y ou: effectively implemented. Value Management • create the conditions for success on y our Risk Ma na gem en t programme through our unique DLiv ering Revi ew Review Iden tifi catition Identifica on The main purpose of Value Management is to Success serv ice • Proje tUn e rrs t ndi g Pro j c Und s ta d n n e d e a i g n maximise the benef its of undertaking a project, • Re v s e Ri k Re g te r vi i R Re i is t se is g s e s r • Ris k Tol ra n e a nd Ri sk T l e ra ce a d o n c n • Re a s e s Li e i li ood s s s Likeh o se ss k l h d o a n d m p a c o f Rsksk nd I m p c t tof Ri s I i s Appe tit Ap p ti e • Dra ft F n i o n An ly s e te Fu c t ti An a si s i u nc n a l s o y whilst optimising the resources inv ested. • analy se and manage y our programme/project • Ris k Re portUpd e s Ri sk Rp o r Up a t te e t d as • Initia Ri kk R gi te In i i a l Ris Re i s r r tl s e s te g risks and opportunities in order to minimise Benef its are articulated and maximised using • Es ta b sh Ri k k Owne r b lis Ris Own rs s l h s i e • Lik e h o L i e liho k l o od i d negativ e consequences and maximise • Ag re M a a g m e t e n e n Ac ti n s a In di idu l tion a n n i v u l a o s nd I v i a d d d • Im p ct t •Qua l ta tiv Qu a ti a a ti pa •Qu a lita ve / / Qu ntitve e i i et a t i v n t ac Function Analy sis techniques, and inv estments are Owne Own e rs • Prox m ity Pro xi i y mi t opportunities • Se t Ri kk Re v e w s Rv i i w Fre q e nc qu n cyy u e e • Va lid te d Ri kk R gi te l i a te Ris Re i s r r d d s e s te g • Ris k Stud Re po Ri sk St d y Re o rt u y p rt ty pically optimised through cost and time analy sis. Ma nagement Mana gem en t Anal ysis Ana lysis • Make rational and explicit decisions against Value management techniques underpin our Value objectiv e criteria through a robust Value Improv ing Practices such as Value Engineering, Management and Value Improv ement process Planning, Programming and Project Controls Process Simplif ication and Waste minimisation • monitor and analyse perf ormance against the During the lif e of a project a disciplined planning programme schedule by using Planning, approach is essential to control its direction, Programme and Project Control tools and outcome and risks. techniques such as Earned v alue Analysis It allows the management team to be in control of each step leading towards conclusion of the project; to understand and communicate progress and control changes required at any giv en time in the process; and prov ide an early warning system when deliv ery dev iates f rom the plan and a structured record of ev ents 17
  15. 15. 2.7_CONCEPT Cost & Value Engineering Design Management Applied at the Design Dev elopment Stage to Improv es and optimises the design process through maximise cost eff ectiv eness of design solutions. analy sing and planning the design stages and Facilitated brain storm of new ideas to perf orm approv al procedures and through def ining the project identif ied functions. Ideas are ev aluated and the deliv erables when initiating the project. pref erred ones are dev eloped into proposals to This serv ice is created to steer all consultants and f urther inv estigate v iability. Ideas are presented to disciplines to work in sy nchrony, av oiding abortiv e or decision makers who determine the number to be repetitiv e work. It is about managing the consultants implemented. deliv ering a scheme, ensuring their process aligns with the client’s processes and identif ies the common objectiv es for the v arious stakeholders. Value Engineering In Dav is Langdon, a large proportion of the serv ice is Applied at the Detailed Design Stage to align cost based on the accurate coordination of ev ents: and estimate with budget. Similar process to Cost hence is combined with our planning and Engineering but it is undertaken later in the project programming expertise. When using traditional lif ecycle hence the ev aluation and implementation planning techniques, the design process is sculpted criteria are more stringent. into the broader v ision of a project. Through design The engineer ing team also undertake in depth change management, we prov ide immediate rev iews of engineering serv ices tender designs and ev aluation of any v ariation to the scope or programme. assess the completeness and quality of mechanical and electrical serv ices proposals 18
  16. 16. 2.8_ENVIRONMENTAL PERMITTING & LAND Contaminated Land Strategy We hav e dev eloped a Remediation Cost and Risk Management (RCRM) off er which integrates issues of cost, land remediation tax relief , liability identif ication (e.g. regulatory risk) and management risk into a single commercially f ocussed report with clear adv ice on the actions and recommendations. These reports are lev el I, II or III depending on the complexity of the site and the amount of inf ormation av ailable. We adv ise on the cost and procurement strategy f or specialist contractors and prov ide contract administration during the remediation works themselv es to maintain the programme on track, resolv e disputes and deal with claims. We can work in a number of way s f rom discrete ad-hoc serv ices, such as prov ision of bespoke cost plans, through to a f ully comprehensiv e ‘one stop' serv ice cost and project management of the whole remediation, if required. This RCRM reports can be usef ul at pre acquisition, post acquisition or dev elopment stages. 19
  17. 17. 2.9_PROJECT ‘UNLOCKING’ Grant Funding PP A Procurement & Brokerage Funding Brokerage For projects in the energy sector there are a variety By utilising our network within the energy purchase Dav is Langdon has exceptional experience in of grants and f unding streams av ailable that could marketplace, our existing property and high energy adv ising banks, inv estors and insurers alike in be harnessed to improv e the financial v iability of the users clients f rom other sectors, Davis Langdon can respect of identify ing and managing construction project, and reduce the amount of financing that connect energy dev elopers and end users to secure and other dev elopment risks. clients need to secure f rom other sources. PPA’s on schemes. This often secures project This access to funding streams allows us to engage f inance and inv estment from third parties, and break There are two key reasons f or the av ailability f or in brokerage f or clients planning inv estment within down a project dev elopment barrier. grants and f unding: energy assets. Theref ore by engaging with f unders and inv estors, we can open the f unding streams for 1) The Gov ernment are keen to promote and f urther inv estigation into project v entures. This encourage the generation of power by sustainable includes: means to work towards their carbon reduction commitments. • Priv ate Equity • Debt Funding 2) Giv en that projects can be built in depressed • Grant Funding locations, these areas may be subject to the requirement f or regeneration. It is likely that grants and f unding streams could be secured f rom regional dev elopment agencies and the like. We are able to assist in maximising grants and f unding for projects. Our serv ice includes researching and identifying the most relev ant sources which f it with the project programme and outputs, co-ordinating the applications, negotiating with the f unders and partners and importantly, managing the interaction of tax and grants to maximise av ailability of f unds. We prov ide up to date insightf ul knowledge and adv ice on new initiativ es and prov iders as they emerge. 20
  18. 18. 2.10_BUYING BETTER Purchase & Supply Chain Engineering Program Management Project Management This is a diff erentiated Whole Lif e approach to buy ing Our Program Manag ement team work Our Project Management team prov ide an and deliv ery; we combine our Strategic Procurement collaborativ ely with clients in the conception, independent prof essional serv ice to plan, lead, practices and our Supply Chain Management management, control and deliv ery of major complex organise and control the management of projects and expertise. We achiev e visibility of the supply chain at programs. programs, f rom inception to reality . Recognised as the earliest opportunity and undertake a rev iew one of the world’s leading prov iders of management The key outputs of our approach are the set of against our Purchase and Supplier Engineering and consultancy serv ices, we employ highly skilled policies, strategies and processes that help to Framework to ensure f itness f or project managers f rom a div erse mix of prof essional identify all necessary project requirements and purpose/capability/capacity appetite. We implement an disciplines. gov ern their implementation. integrated lateral procurement approach by With experience across a wide range of sectors, we dev eloping a common component strategy , clustering We prov ide the necessary leadership to run large hav e the in-house skills and market expertise to modelling and improv e partnering in the Supply Chain, scale programs and set up the correct culture to recognise potential and def ine objectiv es f rom the (Local/ National/ Global) which harnesses and help ensure successf ul implementation. outset, whilst also ensuring the deliv ery of v alue and exploits Clients’ purchasing power. In addition we Our approach to Program Management is to ‘think appropriate management of risk throughout the project closely monitor all Tier 1 and Tier 2 suppliers and big’ through the application of our program, project cy cle. those of deliv ery stakeholders to ensure maximum management, cost management and specialist v alue and response to the Clients Tender Our people are experienced and highly motiv ated serv ices. We continually ref ine our policies, opportunities. We hav e successf ully used this prof essional project managers with a commitment to strategies and processes through our rigorous “Common Components strategy ” on London 2012 and understanding the business objectiv es of our clients, Lessons Learnt process. in doing so hav e sav ed up to 25% f rom the original and aligning projects towards the deliv ery of optimum package costs. This integrated approach helps ensure consistency business v alue. and f low of inf ormation between the Program, We see that our role is to lighten the load for our Project and Contract lev els, which is constantly clients through the application of systems and ref ined. procedures which combine f lexibility to respond to specif ic challenges with rigorous control of cost, time, quality and f unctional perf ormance. We believ e that the best way to achiev e these ambitions is to listen to our customers and inv olv e the deliv ery team in dev ising project. 21
  19. 19. 2.10_BUYING BETTER Contract Advice – Legal Support Grid Connection Procurement – Utilities Infrastructure Our Legal Support Group is recognised f or the high lev el of specialist experience it prov ides to the legal With the de-regulation of the utilities marketplace, we processes associated with ev ery stage of the hav e championed the dev elopment of competition in construction cycle and ev ery ty pe of construction this sector. With sev eral members of the Team being project. members of Gov ernment regulatory steering committees, we are uniquely placed to prov ide clients We prov ide expert adv ice – whether prior to with the latest market opportunities. commencement, at commencement, during or af ter completion of projects – which will help av oid The Team can prov ide f ully detailed procurement disputes or, if disputes are registered, leads to their ‘optioneering’ studies f or new utility serv ices, tailored effective resolution. specif ically to dev elopments. The study explains the adv antages and disadv antages of serv ices installed Legal Support can assist in the preparation of and owned by statutory undertakers, serv ices installed contract documents and other matters where by third parties f or adoption by host statutory specialist construction knowledge is required as undertakers, inset and priv ate networks coupled with well as contractual awareness and appreciation of the reduced capital or ongoing rev enue opportunities. commercial pressures. The Team hav e f acilitated benef its f or clients by procuring new incoming serv ices utilising these alternativ e methods. The Team also improv e deliv ery certainty by implementing contractual saf eguards with the alternativ e contractors that statutory undertakers are unable to enter into. 22
  20. 20. 2.11_CONSTRUCTION Project Controls Our Project Control goal is to keep the Project on- •Identify ing exceptions and v ariances to planned It helps us to manage by ▪ prov iding v ariance track, on-time and within budget by comparing perf ormance analy sis and correctiv e action reporting ▪ actual perf ormance with planned perf ormance and prov iding data that enables a clear •Facilitating appropriate management interv ention to identifying corrective action to generate the desired measurement of project status ▪ supporting the maintain planned perf ormance, reduce and/or mitigate outcome. perf ormance degradation. effective management of resources and ▪ Our Project Controller will prov ide clear and prov iding a basis f or estimating outturn (f inal) detailed inf ormation to the client and Management Project Management and the client will require clear cost, and when the project will be complete. on status and progress by establishing, with the and detailed status and progress information, the team, the deliv ery schedule and subsequently Project Controller will deliv er timely and accurate An effectiv e EVM system may not wholly prov iding inf ormation on status and progress. perf ormance and update inf ormation against planned replace ‘traditional’ measurement methods, perf ormance targets. but should be used as one of a number of The Project Controller will: perf ormance indicators upon which project •Establish the Work Breakdown Structure and managers base their decisions. scope Earned Value Management/Analysis •Def ine the stages, phases, milestones, perf ormance indicators and periodic rev iew points Our EVM sy stem is based upon a structured approach to planning, cost collection and perf ormance •Determine the resources, budgets and costs baselines management that can be applied to projects of vary ing size, scope and duration and will objectiv ely and •Agree the periodicity and f requency of the reporting cy cle accurately identify dev iations f rom the plan. •Establish the content and construction of the The key phrase is ‘structured approach’. An effectiv e v arious reports. sy stem does require ▪ a clear understanding of the The f ollowing monitoring and control requirements contract scope of work ▪ dev elopment of a ‘baseline’ will be prov ided: against which cost and schedule perf ormance can be measured ▪ realistic progress and perf ormance •Periodic cost perf ormance and schedule perf ormance indices to ref lect the true project measurement and ▪ disciplined and timely position incorporation of approv ed changes to the ‘baseline’. •Ensuring that costs are captured and aligned to Our approach aligns with industry best practice schedule activ ities guidelines including the APMs ‘ Earned Value •Managin g the alignment of time and cost in the Management AP M Guidelines’, and draws upon plan experience gained across a variety of sectors and •Ensuring that approv ed change is captured in the stages of a project. schedule and costs 23
  21. 21. 2.11_CONSTRUCTION CDM Co-ordinator Cost Management Cashflow and Cost Management The CDM Co-ordinator role prov ides the client with Dav is Langdon’s cost management serv ices Establishing the f ramework, and then administering adv ice in respect of construction health and saf ety prov ides clients assurance of their f inancial risk, the f inance prov isions of the Contract(s) to control the risk management matters. The Co-ordinator assists ensuring effective cost planning and budget control, Client’s cash f low and the cost effects of change, and adv ises the client on the appointment of best v alue for money and ultimately, sustainable whilst securing perf ormance f rom the Contractor(s). competent designers and contractors and the prof itability f or inv estments. adequacy of management arrangements; ensures proper co-ordination of health and saf ety aspects of the design process; facilitates good communication Cost Forecasting & Reporting between project team members and prepares the Establish a ‘traff ic light’ sy stem of cost forecasting. Risk & Value Engineering health and saf ety file. By liaising closely with the Design Teams on a See 2.6_Risk Mitigation & Value Maximisation The Co-ordinator wi ll make a signif icant contribution regular basis we will be in a position to forecast, in to reducing risk to workers during construction, and terms of cost, potential design changes and options. to contractors and end users who work on or in the By identify ing (Red f or imminent, etc) when dev elopment af ter construction. decisions need to be made, in order to minimise / remov e effect on programme, the Client can make Project Management The Co-ordinator wi ll f acilitate CDM workshops to changes in a timely fashion. See 2.10_Buy ing Better highlight hazards and risks and assist the construction team to prov ide solutions as to how they may be managed. Variation & Change Management Implement pro-activ e change management procedures. Effective change management is the duty of the outline project team, in order to furnish the client with all the f acts, to enable business decisions to be made. A robust change order process needs to be established f rom Scheme Design onwards, where all changes are assessed f or cost and programme implications, rev iewed and approv ed by clients representativ e, prior to incorporation within the design. 24
  22. 22. 2.12_COMMISSIONING & HANDOVER Key f eatures: Financial Closure – Cost Management Where an asset is sold Dav is Langdon will be able to assist by giv ing estimates of allowances inherent on a •Undertaken at the conclusion of signif icant Through out the construction project numerous sale, whether it is by means of transferring the an milestones – ty pically post construction stage challenges will hav e been f aced in the scheme, but asset or the sale of assets within a company . all v ariations, claims and disputes will require •Collection of qualitativ e and quantitativ e data closure to ensure a smooth transition between the •Analy sis of original targets and the teams construction and operation phases. Lessons Learnt Workshops perf ormance to them By the use of proactiv e Cost Management A tailored independent study to retrospectiv ely •Ref lection and collaborativ e problem solv ing throughout the construction phases, the financial analy se project perf ormance and suggest undertaken in workshops f acilitated by experienced closure procedure should be more efficient. improv ements f or incorporation into other projects, as staff Howev er at the closure of projects, numerous part of a programme of work or a Corporate portf olio. stakeholders and contractor’s rev iew their internal •Compilation of an Action Plan to implement change and external costs to understand areas of div ergence and potential claims. The resolution of these claims need to be carried out as quickly as Ca pture Learning possible. Our Cost Managers will instil an Analyse Resul ts Capture Learning (through questionnaires) (through workshop) importance on f inancial closure, to ensure the client Qualitative: • Draw trends • Targeted e xercises to • W hat wo rked wel l? • Design workshop has limited cost exposure and liability f or v ariation discuss key l esson s • Wh at did n’t wo rk well ? sessions • Devel op an Action P lan claims. • W hat wa s no t i nclud ed? • Wha t shou ld b e avoid ed? Quantitative: • Cost, Time, Qual ity Tax, Capital Allowances and Enhanced Capital Rep ort Re sults • Opi nio ns o n sta tements Allowances Claims • Questionnaires, interviews (through interviews) Once the project is on site there will be regular • Discu ss questio nnai re • Workshop sessions updates on the level of allowances and we can also r esp onses • Ga ther more i nformati on • Next Steps work with the design team to make sure the solutions they prov ide are dealt with in a tax Review: Embed Actions: efficient manner. • Ensure • Processes eff ect iveness of When the building is constructed it is important to Processes, Systems • Systems consider any contributions to f itting out works and & Approaches • Approaches also with new rules f or leases of ov er 5 y ears, how that may impact on the lev el of allowances. The Lessons Learnt Process we follow 25
  23. 23. 2.13_ESCO BROKERAGE We understand the technicalities of the v arious renewab le sources both in terms of technical and operational issues. Similarly, we hav e an appreciation of the economic balance required to create an ESCO that appeals to the end user, client, dev eloper and f under alike. We hav e prov en this time and time again on some of the largest projects in the UK including, Kings Cross and London 2012 to name a f ew. Our objectiv es in deliv ering this serv ice are focused on the three parties that usually make up an ESCO: • Funders: Create an appealing inv estment that affords a good ROI based on sound financial f undamentals and mitigated dev elopment risk. • Dev elopers: Minimise the risk of becoming, in effect, an energy supplier and maximise the rev enue potential whilst mitigating the operational risk. • Energy Companies: Broker a balanced f inancial model that satisfies all stakeholders key issues whilst prov iding an amicable risk sharing strategy ov er the lif ecy cle of the asset. 26
  24. 24. 2.14_FUNDER DUE DILIGENCE Energy Technical Advisory Initial Assessment Monthly Reporting We specialise in the deliv ery of detailed Once engaged into a monthly monitoring role, our independent adv ice by experts on behalf of funders, sy stems and procedures ensure that diligence is inv estors, insurers and insolv ency practitioners into maintained and consistent. The f unders can be cost, timing, perf ormance and other risks inv olv ed assured that the cost and time parameters are in the construction and operation of buildings and being tracked and that the position of the other assets. dev elopment is up to date. Furthermore, we capitalise on the technical strength At any one time, our cash f low tracking tool can of our engineering serv ices team combined with our identify: team’s appreciation of f inancial institute concerns to produce an initial Technical Adv isors report for a • what the cost and time to complete is, wide range of energy generation projects – both • the v alue of any outstanding v ariations, renewab les and traditional. • the probability of any other v ariations arising, Where we operate in an international context, we often offer additional f orms of analy sis such as • the impact of macro economic conditions, global sourcing strategies, contingency v olatility • the env elope within which the deal is operating modelling and currency stress testing. Furthermore our monthly reporting ensures clarity ov er: • the progress of critical technical aspects • the progress of relev ant permits and permissions • the coordination of communication across all share & stake holders • the key macro risks that could adv ersely impact energisation, generating capacity and / or rev enue generation 27
  25. 25. 3.1_CLIENTS & EXPERIENCE Please f ind on the f ollowing pages a range of our extensiv e people’s experience in the Low Carbon Energy and Energy from Waste sector. Our position as a top construction consultancy is demonstrated through our continued success in receiving industry awards and through being trusted by some of the biggest clients to be their advisor. 30
  26. 26. Low Carbon Energy Generation & Energy from Waste DRUMSH ANGIE ENERGY FROM W AS TE BIO MASS CHP G ASIFICATION POWER PLAN T, ENERGY FROM W ASTE PL AN T, UK CENTRE, SCOTL AND ENGL AND Client: CNIM Client: Gillespie Inv estment Group Client: Conf idential Completion: 1995 Completion: Feasibility & Planning Stage Completion: Feasibility Value: Circa £100 million Value: Approx. £300 million Value: Approx. £150 million Description: The plant was designed to meet the Description: 300,000T per annum waste Description: 40 MWe Bio mass Gasification Power challenge of modern waste management and utilised best av ailable technologies, the majority of processing f acility for energy generation. house f or energy generation. which was designed and manuf actured CNIM. Role: We are currently adv ising the inv estment Role: Adv ising the inv estment partnership on the group f or the early f easibility, inceptional planning early feasibility, inception planning stages of the The CNIM proposals demonstrated that an env ironmentally -f riendly process which produces and v alue engineering stages of the proposed proposed Power Plant and surrounding business energy f rom waste facility in Scotland. park dev elopment and district Heating & Cooling electricity f rom household and commercial waste is inf rastructure and 33MVA utilities inf rastructure the best solution to the specif ic waste management Our primary inv olvement has centered around the requirements of Wolv erhampton. connection. cost viability and opportunities f or capital and operational sav ings as part of the business case Cost viability and opportunities on the capital and Procurement Route: In packages using a selection study for the inv estment. operational cost as part of the business case study of contracts including ICE, MF/1 and FIDIC. f or the Partnership Inv estors. Role: We prov ided post contract cost management f or the redev elopment and upgrading of existing f acilities. 31

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