INDIAN GCP GUIDELINE. for Regulatory affair 1st sem CRR
Malakhov Vladimir. Presentation for IAEA Technical Meeting on Becoming a Knowledgeable Customer in Obninsk 07.04.2014
1. 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
2. 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.
3. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 3
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
4. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 4
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
5. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 5
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.Thecustomer
Profile Project
Thethirdparty
3 4
Non-profile Project
Compliance to competences of Client
Thefutureoperatoroftheobject
21
The main classification of Customers
6. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 6
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
7. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 7
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.
Competitivenegotiations
Compensation of expenses
Thetenderselection
3 4
The announcement of the price
Method of estimation of the cost of the contract
Methodofachoiceofthecontractor
21
1-st Process step of formation of contract strategy
8. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 8
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.
FINANCIAL ENGINEERING: the Customer finds financing
and credits
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
9. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 9
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
FINANCIAL ENGINEERING: the Customer finds financing and
credits
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
CONSTRUCTION ENGINEERING: Construction is carried out by
General contractor
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
CONSTRUCTION ENGINEERING: Construction is carried out by
General contractor
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 CONTRACTORCLIENT
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
10. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 10
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
Competitivenegotiations
Compensation of expenses
Thetenderselection
3 4
The announcement of the price
Method of estimation of cost of the contract
MethodofachoiceoftheExecutor
21
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
11. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 11
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.
12. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 12
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
Itisnotdemanded
Is available
Itisdemanded
3 4
Is not available
The engineering competence of the Customer
TheengineeringcompetenceoftheContractor
21
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)
13. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 13
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 the early
start
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
14. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 14
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
15. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 15
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
ReductionoftherisksoftheCustomer
Step 4 in contract strategy - the account of transformation of the contracts after stage the Open Book
16. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 16
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
The concept of the
early start
Engineering of the
Customer
The specialization of
the object
Factors of the formation of the Contract model of the project
17. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 17
COMPLEX CONTRACT MODELS OF REALIZATION IBP
I
F
BP
PM
E
P
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
I
F
BP
PM
E
P
C
OC
O/T
DC
I
F
BP
PM
E
P
C
OC
O
DC
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
18. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 18
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
ConstructionProcurementEngineering
The key competence
of the ЕРС-contractor
Key competence of the ЕРС-contractor as the factor of the selection of the Executor
19. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 19
COMPLEX CONTRACT MODELS OF REALIZATION IBP
COMPARISON of the RUSSIAN TECHNICAL-CLIENT with the ЕРСМ-contractor
The contractor
Russian
The customer
Western
Representative
TheConceptualmodel
The customer - the Builder
The Group of
Executors
Builder The General customer
The Group of
Executors
Contractors
EPC-contractor
Technical
customer
custome
rBuilder
Technical
customer
Client+
Expert-
Consultant
EPCM for
FEE
Client-
ContractorsClient
EPCM at
RISK
Analogy of the Technical Customer with the ЕРСМ-contractor in contract relationships
20. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 20
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
Subcontractors for
constuction
Suppliers
of the nonbasic
equipment
Subcontractors for
constuction
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
Субпроектировщик
и
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
21. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 21
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 CUSTOMER of
type AP
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
The CUSTOMER of type
AP
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 BelarusChina
Russia
22. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 22
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
23. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 23
COMPLEX CONTRACT MODELS OF REALIZATION IBP
REALIZATION OF FOREIGN PROJECTS OF NPS TROUGH DEVELOPING SCHEMS.
•Build - Operate - Transfer
•Построй - Эксплуатируй - ПередайBOT
•Build - Own - Operate - Transfer
•Построй - Владей - Эксплуатируй - ПередайBOOT
•Build - Transfer - Operate
•Построй - Передай - эксплуатируйBTO
•Build - Own - Lease - Transfer
•Построй - Владей - Сдай в аренду - ПередайBOLT
•Build - Transfer - Lease - Operate
•Построй - Передай - Арендуй - ЭксплуатируйBTLO
•Lease - (Re)Build- Operate
•Арендуй - Перестрой - ЭксплуатируйLBO/LRO
•Build - Transfer - Maintenance
•Построй - Передай - ОбслуживайBTM
•Buy - (Re)Build - Operate - Transfer
•Выкупи - Перестрой - Эксплуатируй - ПередайBBOT/BROT
•Build - Own - Lease
•Построй - Владей - Сдай в арендуBOL
•Lease - (Re)Build - Operate - Buy
•Арендуй - Перестрой - Эксплуатируй - ВыкупайLBOB/LROB
•Build - Own- Operate
•Построй - Владей- ЭксплуатируйBOO
•Buy - (Re)Build - Operate
•Выкупи - Перестрой - ЭксплуатируйBBO/BRO
ВОО is the most suitable model of realization of designs of NPS abroad
Models of concession development for implementation of projects
24. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 24
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
25. Malakhov Vladimir Ph.D.DBA Conference MAGATE-2014 Obninsk, ROSATOM CICET. 07.04.2014г. Page 25
COMPLEX CONTRACT MODELS OF REALIZATION IBP
PROJECTS REALIZATION OF NEW NPS ABROAD FOR THE TYPE AP.
Thanks for attention!
Contact: VIMalakhov@Rosatom.ru 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