Case Study

West Burton Power Station, EDF

EDF Energy is constructing a new 1,300MW Combined Cycle Gas Turbine (CCGT) power station at its West Burton site in north Nottinghamshire. The project is being procured and managed by EDF-CIT who are the groups in-house delivery vehicle for this type of scheme. The project will be operational towards the end of 2012 with an overall projected cost in excess of £500m. Construction packages have been let using a variety of contracts in cluding NEC 3 Option C and bespoke contracts based on FIDIC.

DGA's initial brief was to provide commercial support to the review and defence of contractor claims on the £100m civils package. The contractor had submitted a series of detailed monthly interim extension of time applications together with a loss and expense assessment. DGA peronnel managed the response process to these documents and having undertaken an analysis of the issues contributed to a negotiated settlement between EDF and the contractor. With outstanding works being completed on a cost reimbursable basis, DGA were then asked to carry out a detailed audit and provide a comprehensive review of costs incurred to be signed off by an independent chartered accountant.

DGA's brief was extended to include a review and response to some 3000 compension events notified under NEC 3 Option C on the equipment installation package. This exercise helped facilitate a supplimentary agreement which included the formation of a formal strategic alliance tasked to jointly deliver the balance of the works. DGA personnel are seconded to the alliance to provide the necessary commercial support and to administer the project controls processes.

Further extensions of DGA's brief included the commercial management of a complex contract for the delivery of the electrical balance of plant equipment and other services. This package was procured on an amended FIDIC form and included redetermination and fluctuations provisions for much of the equipment. DGA's proactive approach are helping to effectively manage numerous variations and ongoing issues of delay.