presentation to construction clients’ group in... · building long-lasting industry relationships...
TRANSCRIPT
Innovation in ProcurementPresentation to Construction Clients’ Group
Wednesday 28 May 2014
MERIDIAN ENERGY LIMITED
Intro to Meridian Energy Ltd
•New Zealand’s largest electricity
generator
•Generates electricity from only
renewable resources
•Retails electricity to homes, farms,
businesses and industry throughout NZ
•Recently partly privatized ~51%
ownership held by the Crown
•Own, operate and maintain 7 Hydro
sites (2,368 MW installed capacity), 5
Wind sites in NZ (356 MW installed
capacity) and 1 wind site under
construction (59.8 MW capacity).
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Procurement Innovation?
“Being the customer of choice”
1. Building long-lasting industry relationships
2. Selecting a fit-for-purpose contracting method
3. Using these relationships and contracts to drive improved performance
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Customer of Choice
•Why does it matter?
• Critical infrastructure -> Response times
• Limited industry -> Contractor availability
• Specialised skills -> Forward planning of projects
• Relationships -> Better understanding of risks
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Types of procurement undertaken
•New generation asset builds (Mill Creek ~NZ$169M)
•Asset Management Capital Programme (~NZ$27M per annum)
• Waitaki Refurbishment
• Manapouri Ventilation Upgrade
• Benmore Final Configuration
•Asset Maintenance & BaU (~NZ$22M per annum)
• ~70% is locked up just keeping the lights on
• Facilities Maintenance
• Lakeshore erosion protection
• Revenue Metering certification
• Hydrometric Services
• Dam Safety Review / Data Monitoring
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Building long-lasting industry relationships
•SRM Framework with key parties
• Relationship managers within each Party to discuss performance, problems,
opportunities & resourcing.
•Constructability workshops
• Opportunity to get Contractors who perform well to provide professional advice
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Project – Manapouri Powerhouse Ventilation Upgrade
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
Cost: ~$10M
Time: 2012 – 2015
Scope:
•Replace coolers
•Replace corroded
ducting
•New control
systems
Procurement:
•2 NEC3 PSC
•2 NEC3 ECC
MERIDIAN ENERGY LIMITED
Selecting a fit-for-purpose contracting method
•NEC3 Contract Suite
• “Relational contracting”
• Process contract
• Best for project outcomes through Early Warnings
•Contract training sessions
• For staff, contractors / consultants etc
•Standardised tendering
• Online tendering ~ reduced timeframes
•Panel / master agreements
• 5 year commitment -> reduced rates
• Easier to engage (mini-tenders)
• Better risk coverage
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Project – Waitaki Refurbishment
Cost: ~$45M
Time: 2013 – 2016
Scope:
•Refurbish cranes
•Replace CO2
•Refurbish lift
•Replace intake
screens
•Recommission G3
•Repair river bank
erosion
•Replace unit
protection systems
Procurement:
•Approx 40 NEC3
contracts
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Driving performance
•In-house project management capability
• Better relationships with contractors/suppliers
• Significant savings compared to main contractors / project management body
shops
•Contract management system
• Standardised process for managing contracts
• Easier identification of contractual timeframes
• Portfolio reporting on contractual performance
•Collaborative solutions to problems
• Using relationships and contractual processes to get real best-for-project
outcomes
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
MERIDIAN ENERGY LIMITED
Project – Benmore Final Configuration
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
G1
522
523
521
7
36
T2
11
1
T1
VG1
G2
2
G3
3
12
VG2
8
G4
4
9
462
37
T5
G5
5
G6
6
465
463
T3
Bus A
Bus B
Bus C
16kV
220kV
220kV
220kV
Bus ABus B
n/o
SLD Benmore (pole 1B removed)
From this...
To this...
MERIDIAN ENERGY LIMITED
Or alternatively
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group
From this...
To this...
Cost: ~$22M
Time: 2010 – 2014
Scope:
•Replace 16kV
switchgear
•Replace
transformers
•Electrical
Reconfiguration
Procurement:
•NEC3 PSC
•2 NEC3 SC
•3 MF/2
•NEC3 ECC
MERIDIAN ENERGY LIMITED
Questions?
28 May 2014 | Innovation in Procurement & Delivery | Construction Clients’ Group