energy storage
How to Succeed in EPC Project Delivery
by Phillip O’Connor
If you’re in the market for a comprehensive energy storage installation, it makes sense to seek out companies that offer a turnkey solution. If you’re the one supplying the solution, guaranteeing a successfully completed project is far from simple. Every business aims to ensure a favorable project outcome. Long before signing a contract with an end user, however, any full-service engineering, procurement, and construction (EPC) firm must consider their value proposition at the early stage of each proposal, so as to meet the objectives of the client requirements. Once an EPC firm decides to develop a response to a request for proposal (RFP), the primary objective is to establish a highly compliant proposal. Several factors have to be considered for a successful project outcome to include company resource availability:
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JULY•AUGUST 2020 /// www.nacleanenergy.com
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Company competitiveness Understanding the project risk profile Developing a risk mitigation plan Establishing a project team that is qualified to execute the contract Lead EPC firms are typically confronted with challenges on how to best deliver the project within a tight timeline (on average, between 1 to 2 weeks). This process can require engagements that include the execution of various legal documents, including non-disclosure agreements (NDA’s), exclusive teaming agreements, and single project and/or program joint venture agreements. During a proposal phase, the EPC firm must be prepared to submit a number of deliverables at their own expense, such as engineering design work, project execution plans, project schedules, financial estimates, organizational charts, employee qualifications, red lined contracts, equipment specifications, etc. Top tier regulated electric utilities and well-established independent power producers tend to conduct proposal reviews using multiple criteria and the input of several stakeholders. Standard protocol dictates that review committees be formed by the end user. These generally consist of subject major experts in engineering, and often times will include third party consultancies that provide unbiased expert judgement and recommendations on technical robustness of the EPC firm’s offer. If there is no prior relationship with the end user, an EPC firm has limited time to establish credibility. This can often be addressed through the process of obtaining pre-qualification status outside of a project RFP. Commercial reviews are typically handled by separate teams, and require detailed review
