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Visaginas nuclear power plant:
        aspects of practical preparation -seminar


     Participation of Finnish construction
     companies in OL 3 project - plant provider's
     views

                                      11th of October 2012
                                         Jukka Hellgren
                                       Oy Culmentor Ltd.




© Oy Culmentor Ltd.
Oy Culmentor Ltd
• Established 1999
• Main focus for R&D funding services
• Main office location in Oulu, Finland and local office
  in Skellefteå Sweden
• Clients; public and private development
  organizations, private big and SME-companies,
  universities etc.
Jukka Hellgren
• Managing Director of Oy Culmentor Ltd.
• Civil engineering background; several power
  stations, dams constructions, bridges etc
• Nuclear experience: During the years 2004-2006
  working to Areva for civil works procurament
  department; special task to define Finnish
  construction companies to involve to the OL 3
  project
Nuclear project and actors in
          Finland
Normal investment projects


           Quality




             Ideal
          Investment



  Costs                Time
Diffenrent type of investment projects


                        Quality
                        Nucler-
                        project




         Office and               Industrial -
       hause projects               project
       Costs                            Time
STUKK
•   Radiation and Nuclear Safety Authority
•   350 professionals
•   Goal: minimize the harmful effects of radiation
•   Formulates the safety requirements concerning the use of
    nuclear energy in Finland.
•   Issues detailed regulations - YVL guides - that apply to the
    safe use of nuclear energy
•   Licensing the use; Principle decision, Construction license
    and Operation license
•   Licensing, approving, verification and inspection
Partners in Finnish nuclear projects
                                          Turbine and Nuclear island
                        Approval
                                                     OWNER
                                               (like TVO, Fortum,
                                                   Fennovoima)

                             Plans & Reports                 Approval
      STUK
Radiation and Nuclear                             Plant provider
  Safety Authority,
                                          (like, Areva, Toshiba, Hitatchi
       Finland
                                                        etc)

                                                     Suppliers
                                               (civil works, piping,
                                                 equipment etc)
Plant providers procurament
          process
Process for Safety class 2 constructions based on YVL guide
                                     Request for                     Contract
         Plant contract              quentation             Tender


 Time
 Procurament




                                                                                                                                           Execution
 process of         Main                         Offering      Contract
 plant                                                                  Mobili-           Preparation on site
                    Contract                     time          negoata
 provider                                                      tion     sation
                    preparation

Desing
process             Basic Design                      Detail Desing                       Concreting plan
Subcontractor                                                                        Plan


Main contractor                                                                                Plan/
                                                                                               Approval

 Plant                                            Plan                                                    Approval
                  Plan
 provider
 Owner                                                       Approval                                                Approval
                          Approval


 Stukk                                Approval
                                                                         Approval                                               Approval

                                                                                      1-2 w      1-2 w      1-2 w     1-2 w       2-3 w
                                                                 1-6 m      6m
                                                                                    RfC
Process for Safety class 2 constructions based on YVL guide
                                     Request for                     Contract
         Plant contract              quentation             Tender


 Time
 Procurament




                                                                                                                                           Execution
 process of         Main                         Offering      Contract
 plant                                                                  Mobili-           Preparation on site
                    Contract                     time          negoata
 provider                                                      tion     sation
                    preparation

Desing
process             Basic Design                      Detail Desing                       Concreting plan
Subcontractor                                                                        Plan


Main contractor                                                                                Plan/
                                                                                               Approval

 Plant                                            Plan                                                    Approval
                  Plan
 provider
 Owner                                                       Approval                                                Approval
                          Approval


 Stukk                                Approval
                                                                         Approval                                               Approval

                                                                                      1-2 w      1-2 w      1-2 w     1-2 w       2-3 w
                                                                 1-6 m      6m
                                                                                    RfC
General conditions structure
         Finnish project                     Nuclear project

                                           Owner
                                                               Plant supply contract
KSE                    Owner
General
Conditions for
consulting                                         Plant supplier
                     Contractor
 Desingner
                      consult
                                           Engineering       Procurament

                  Construction
                   company                     Construction company

                 YSE
                 General conditions for   Plant suppliers own contract
                 building contracts
                                          conditions
What – if you want to take
part of the plant provider
 procurement process
RFQ
• Based on Plant supplier’s own general conditions
• Big company contract conditions and made for
  Global use
 Contract proposal is only a proposal
 You can always negotiate and effect to the final
  contract
Worth Noticing: Both parties williness to make the
deal !!!!
RFQ
• Reason of time schedule and process always based
  on mainly basic design drawings and documents
• Final working methods and quantities of work is
  missing
 Based on unit prices
 Not all units even are defined in the RfQ
Worth Noticing: Difference of measurement methods of
quantities !!!!
RfQ
• Even English is project languages, all persons are
  not native  problems in written documents on RfQ
• Structure of the RfQ is different than most of the
  domestic RfQ’s
 Open mind for changes and for new working
  methods
Worth Noticing: English languages' knowledge and
understanding of plant providers culture and working
methods
Preparation of the Tender
• Make it as a project
• Start on earlier enough
• Reserve the recourses, human and money
• Contact to Client, discussion and meeting with them
 Need of commitment for tendering by top
  management of the company
Worth Noticing: Recourses for tendering; people, time,
knowledge and money
Preparation of the contract
• Conditions are central part of the contract and they are
  made by the client
• Concentrate to the conditions and use best available
  experts to comment the conditions as a part of your
  tender
 Include your own proposal/comments to the conditions
Worth Noticing: Contract conditions must read and
comment as a part of your tender, not after your tender
delivery
Thank you


                                          Jukka Hellgren
                                        Mananging Director
                      jukka.hellgren@culmentor.com         www.culmentor.com
                      Oy Culmentor Ltd.              GSM +358 (0)40 760 1447
                      Rautionkatu 2                  Tel. +358 (0)10 7340 600
                      FI-90400 Oulu, Finland




© Oy Culmentor Ltd.

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Jukka Hellgren, Culmentor Oy vadovas (Suomija), „Suomijos įmonių dalyvavimas Olkiluoto-3 projekte: jėgainės tiekėjų požiūris“

  • 1. Visaginas nuclear power plant: aspects of practical preparation -seminar Participation of Finnish construction companies in OL 3 project - plant provider's views 11th of October 2012 Jukka Hellgren Oy Culmentor Ltd. © Oy Culmentor Ltd.
  • 2. Oy Culmentor Ltd • Established 1999 • Main focus for R&D funding services • Main office location in Oulu, Finland and local office in Skellefteå Sweden • Clients; public and private development organizations, private big and SME-companies, universities etc.
  • 3. Jukka Hellgren • Managing Director of Oy Culmentor Ltd. • Civil engineering background; several power stations, dams constructions, bridges etc • Nuclear experience: During the years 2004-2006 working to Areva for civil works procurament department; special task to define Finnish construction companies to involve to the OL 3 project
  • 4. Nuclear project and actors in Finland
  • 5. Normal investment projects Quality Ideal Investment Costs Time
  • 6. Diffenrent type of investment projects Quality Nucler- project Office and Industrial - hause projects project Costs Time
  • 7. STUKK • Radiation and Nuclear Safety Authority • 350 professionals • Goal: minimize the harmful effects of radiation • Formulates the safety requirements concerning the use of nuclear energy in Finland. • Issues detailed regulations - YVL guides - that apply to the safe use of nuclear energy • Licensing the use; Principle decision, Construction license and Operation license • Licensing, approving, verification and inspection
  • 8. Partners in Finnish nuclear projects Turbine and Nuclear island Approval OWNER (like TVO, Fortum, Fennovoima) Plans & Reports Approval STUK Radiation and Nuclear Plant provider Safety Authority, (like, Areva, Toshiba, Hitatchi Finland etc) Suppliers (civil works, piping, equipment etc)
  • 10. Process for Safety class 2 constructions based on YVL guide Request for Contract Plant contract quentation Tender Time Procurament Execution process of Main Offering Contract plant Mobili- Preparation on site Contract time negoata provider tion sation preparation Desing process Basic Design Detail Desing Concreting plan Subcontractor Plan Main contractor Plan/ Approval Plant Plan Approval Plan provider Owner Approval Approval Approval Stukk Approval Approval Approval 1-2 w 1-2 w 1-2 w 1-2 w 2-3 w 1-6 m 6m RfC
  • 11. Process for Safety class 2 constructions based on YVL guide Request for Contract Plant contract quentation Tender Time Procurament Execution process of Main Offering Contract plant Mobili- Preparation on site Contract time negoata provider tion sation preparation Desing process Basic Design Detail Desing Concreting plan Subcontractor Plan Main contractor Plan/ Approval Plant Plan Approval Plan provider Owner Approval Approval Approval Stukk Approval Approval Approval 1-2 w 1-2 w 1-2 w 1-2 w 2-3 w 1-6 m 6m RfC
  • 12. General conditions structure Finnish project Nuclear project Owner Plant supply contract KSE Owner General Conditions for consulting Plant supplier Contractor Desingner consult Engineering Procurament Construction company Construction company YSE General conditions for Plant suppliers own contract building contracts conditions
  • 13. What – if you want to take part of the plant provider procurement process
  • 14. RFQ • Based on Plant supplier’s own general conditions • Big company contract conditions and made for Global use  Contract proposal is only a proposal  You can always negotiate and effect to the final contract Worth Noticing: Both parties williness to make the deal !!!!
  • 15. RFQ • Reason of time schedule and process always based on mainly basic design drawings and documents • Final working methods and quantities of work is missing  Based on unit prices  Not all units even are defined in the RfQ Worth Noticing: Difference of measurement methods of quantities !!!!
  • 16. RfQ • Even English is project languages, all persons are not native  problems in written documents on RfQ • Structure of the RfQ is different than most of the domestic RfQ’s  Open mind for changes and for new working methods Worth Noticing: English languages' knowledge and understanding of plant providers culture and working methods
  • 17. Preparation of the Tender • Make it as a project • Start on earlier enough • Reserve the recourses, human and money • Contact to Client, discussion and meeting with them  Need of commitment for tendering by top management of the company Worth Noticing: Recourses for tendering; people, time, knowledge and money
  • 18. Preparation of the contract • Conditions are central part of the contract and they are made by the client • Concentrate to the conditions and use best available experts to comment the conditions as a part of your tender  Include your own proposal/comments to the conditions Worth Noticing: Contract conditions must read and comment as a part of your tender, not after your tender delivery
  • 19. Thank you Jukka Hellgren Mananging Director jukka.hellgren@culmentor.com www.culmentor.com Oy Culmentor Ltd. GSM +358 (0)40 760 1447 Rautionkatu 2 Tel. +358 (0)10 7340 600 FI-90400 Oulu, Finland © Oy Culmentor Ltd.