dale lindberg_china export model

8/11/2019 Dale Lindberg_China Export Model

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Dale LindbergVice President & Director

Power Generation Services- Asia

Dale has spent his entire 40 year career with B&V.

Currently he resides in B&Vs Beijing office

overseeing our Services business in Asia. Dale has

been working in Asia for 30 years. Over the past 4

years he has had extensive experience with the

China Export Model. Office Location

Beijing, Peoples Republic

of China

Education

B.Sc. Civil Engineering


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VICEPRESIDENTANDDIRECTORPOWERGENERATIONSERVICES ASIADALELINDBERG

CHINAEXPORTMODELCHALLENGES/SOLUTIONS

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mber2013


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ChineseEPC contractorshaveinconsistentrecordsfor

thedelivery

of

projects

outside

of

China

TypicalprojectdeliveryinsideChinaisnotEPC model Ownersprojectteamimplementstheproject

management Ownersheadquarterandprojectteamjointly

procure

individual

equipment

with

the

assistance

fromthedesigninstitutewhodesignsthepowerplant

Afewlocalcivilanderectioncompaniesarehired Aprofessionalcommissioninginstitutedoesthe

startup,commissioningandperformancetesting

Historically,China

export

projects

have

been

governmenttogovernmenttypeprojects.NowincludingIPPs

ThecultureandpracticeofprojectexecutioninsideChinaisdifferentthanoutsideofChina

BACKGROUNDOF

CHINA

EXPORTPROJECTS

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Aggressivepricing

FinancingsupportfromChinaEXIMBANK,SINOSURE andChinesegovernment(exportfinancing)

Promiseaggressiveprojectschedules

Todatenotdelivered

WillingtobringChineseconstructionlabortosite

Less

sensitive

to

commercial

terms Aggressivesales/marketing

WillingnesstotakeOwnershiprole

COMPETITIVENESSOF

CHINESE

EPCCONTRACTORSOUTSIDEOFCHINA

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Inconsistentinternationallevelofquality

Conformitywith

owners

contract

versus

China

standardpractices

Projectmanagementexperienceandhumanresourcesforoverseasprojects

Projectcontrols cost,scheduleandrisk

managementprocedures

(lacking

CPM

planning)

Actualimplementationofinternationalandlocalcodesandstandards

Managinginterfaceswithlocalconstruction

contractorsand

local

authorities

EnglishCommunicationskills amajorhurdle

Safety,Health,Environmentperformance

EntryandworkpermitsforChineselabors

CHALLENGESFOR

CHINESE

EPC

CONTRACTORSOUTSIDEOFCHINA

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BLACK&VEATCH

SOLUTIONFOR

CHINAEXPORT

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AsOwnersEngineer,supporttheowner

withmanagement

of

the

Chinese

EPC

OwnersEngineershouldhavesignificantexperienceandresourcesinChinaandshouldbegiventheauthority

to

manage AsEP/EPC ContractortoprocureChinese

equipmentandmanageChinesepartnersandvendors

Black&Veatchbringsleadershipforoverall

project

management,

quality

control,technicalcoordinationandinterfaceswiththeclientandlocalconstructioncontractors

WEHAVE

USED

TWO

APPROACHES

TO

ASSIST

OWNERSADDRESSTHECHALLENGESOFUSINGCHINESECONTRACTORSANDEQUIPMENT

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BLACK&

VEATCH

CHINA

EXPORT

PROJECTS

Project Client Location Capacity(MW) Scope ServicePeriod

Banten Genting Indonesia 660 MW, Coal FullOE 2012 ongoing

Salalah IWPP Sembcorp OmanCombined Cycle430MW/15MIGD

PartialOE 20082012

Rabigh IPPProject

ACWC Saudi

Arabia 2x660,

Oil Full

OE 02/2009

03/31/2013

Tiroda ThermalPower

Adani PowerMaharashtra

PrivateLtdIndia

3x660,PC,Supercritical

Limitedscope 04/2009

ongoing

Tanjung Jati B Sumitomo Indonesia 2X660MW

EP 20092012

PTBABanjasari PT

Bukit

Asam Indonesia Banjasari 2x100MW

OE 07/2007

on

going

BarcarenaPowerPlant

Vale(CVRD) Brazil 2x300,PC,60HZ Fullscope 1/2008

ongoing

PLN10KProgram PLN Java,Indonesia

Suralaya 1x600PC,Paiton 1x660PC,

Rembang 2x300PC,Ad ipala

Limitedscope 11/2007 2014

OyuTolgoiPowerPlant

Ivanhoe Mongolia 3x150,CFB Fullscope 04/2007 pending

MonteEsperanzaPowerPlant

Globeleq Panama 2x135,CFB,60HZ OE 3/2007

onhold

Cilacap S2P Java,Indonesia 2x300,PC Limitedscope 06/2004 12/2006

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ManyoverseasprojectsrequireU.S./InternationalCodesandStandards

ChineseDIs

/Contractors

have

limited

or

no

capability

to

designtointernationalstandards

Limitedcapabilityin:

Heatbalancesandperformancecalculations

Dynamicfoundationdesign

NFPA

Noiseplanning/modeling

Difficultcoordinating

with

vendors

and

other

contractors

EffectivedrawingcontrolandmanagementsystemsarenotusedbyDIs

ENGINEERINGOBSERVATIONS

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MustensurethatContractorunderstands

localmandatory

requirements

Fire/explosionprotection,environmental,health,safety

Expectthattheprojectwillbedesigned

primarilyto

GB

(China

National

Standards)

Significantcostbenefitsandshorterdeliveryperiodsforequipment

RequireInternationalStandardsonlywherecritical

AmericanASME,ANSIandInternationalISO,IEE,IEEC

MaterialApplicationGuide

CODES&STANDARDS

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Kickoffmeeting(reviewofreqm andalignment)

Agreeonbasicdesignfirst

Reviewcriticaldrawings

Design

liaison

meetingsLimitdrawingreviewcycles

UseBeijingofficedesignreviewteam

Weeklycoordination

Actionitemlists

ENGINEERINGSOLUTIONS

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DonotuseCPM planning

Donotuseprogressmodel

Littleinterface/coordinationamongEPC

Do

not

plan

for

floatDonotuseLNTP

Missschedules

PROJECTCONTROLS

OBSERVATIONS

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Black&VeatchguideEPC indevelopmentofCPM plan

Black&VeatchguideEPC indevelopmentofprogressmodel

DonepriortoNTP

Black&VeatchinstructEPC onCPM analysis

Black&VeatchmonitorEPC monthlyprogressreportandschedulestatus

Quicklyelevate

critical

deviations

Review/discussscheduleinmonthlyprojectmeetings

PROJECTCONTROL

SOLUTIONS

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Ensurequalified,toptierChinesevendorsareincludedinthe

EPC Contract

Qualitycontroliscritical significanttimeneedstobespentinvendorshopstoverifyproperproceduresare

followedEPC ContractRequirementsareoftennotfloweddownto

vendors

Obtainingtimelydesigninformationcanbedifficultinfluences

overall

design

schedule

Technicaladvisorcapabilityislimited

PROCUREMENTOBSERVATIONS

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EnsureprequalifiedvendorsinEPC contract

Black&Veatchhasdoneduediligenceon400Chinesevendorsandprequalfied 180

Procurement/QCkickoffmeeting

LTP planBlack&Veatchinspection

Surveillancereports

Resolveissuestimelyinshop

Deviationmanagement

Expediting

PROCUREMENTSOLUTIONS

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Constructionactivitiesaregenerallynot

plannedin

detail

Difficultiesincoordinatingwithlocalsubcontractors

Coordinationbetweenconstructionand

commissioningneeds

improvement

Chineseconstructioncontractorsareaccustomedtofielddesignchangesproblemscanoccurwithforeigncontractors

notused

to

this

approach

Safetyisnotafocus

Reportingislimited

CONSTRUCTIONOBSERVATIONS

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QualifiedSiteManager

QualifiedSiteManager

DisciplineSiteEngineers

DisciplineSiteEngineers

ProjectControlsProject

Controls QCManagerQCManager

SpecialtyEngineering

Support

SpecialtyEngineering

Support

WeeklyCoordination

Meetings

WeeklyCoordination

Meetings

ActionItemLists

ActionItemLists

ClaimsManagement

ClaimsManagement

CONSTRUCTIONOVERSIGHT

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Donebysubcontractors

Commissioningprocessisnotintegratedintotheoverallprojectplan

Astructuredprocessisnotfollowed

Notenough

time

is

typically

allotted

for

commissioning

Constructiondoesmanyequipmentcommissioningtasksthatwouldnormallybedonebythecommissioningteam

Hydrotesting

of

critical

pipe

not

done

Steamblowcompletedonacceleratedbasis(3days)

STARTUP/COMMISSIONING

OBSERVATIONS

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QualifiedCommissioningManager

Disciplinestartupengineers

Startuppackages

Startup

scheduleFireprotectionandDCS protectioninplacepriorto

hotcommissioning

STARTUP/COMMISSIONING

OVERSIGHT

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Needperformancetestplan

Agreementoncalculatedresults(correctionmethods)

Black&Veatchwitnessand

performancereport

review

PERFORMANCETESTING

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Q&A

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dale lindberg_china export model

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