rwe mynydd y gwair supply chain event - tim james / kirsty curry

RWE Innogy UK PAGE 1

Mynydd y Gwair Wind Farm Business Breakfast

22nd July 2016


Mynydd y Gwair Wind Farm - ConstructionTim James, RWE Innogy UK


An overview of the project

Location:15 kilometres (9 miles) north of Swansea.

Number of turbines: 16

Installed capacity:Up to 33.6 MW

Potential investment:Up to £52 million

Community fund:Up to £240,000 per year

Map of Mynydd y Gwair


• Planning Consent – Received March 2014• Commons Consent – Anticipated July 2016

• Pre-Start Surveys – August to September 2016

• Archaeological

• Ecological

• Ground Conditions

• Enabling Works – October 16 to April 17

• S278 Works – October 16 to April 17

• Civil Works (Main Site) – June 17 to October 18

• Electrical Works - October 17 to September 18

Mynydd y Gwair Wind Farm – Programme


• Six principle work packages:

• Enabling Works – Tender Evaluation in Progress• NEC Option A

• Civil Balance of Plant – Tender Q3 2016• NEC Option A

• Electrical Balance of Plant - Tender Q4 2016• NEC Option A

• S278 Works – City & County of Swansea

• Grid Connection – Western Power Distribution

• Turbine Supply – Tender Evaluation in Progress

• Bespoke Contract

Mynydd y Gwair Wind Farm – Project (Construction)


Potential direct minor contracts • Ecological Surveys• Design• Resident Engineer/Ecological Clerk of Works• Legal Services• Topographic Surveys• Site Investigations• Electrical Studies• Highway Condition Surveys• Land Agents• Archaeological Services and Investigation works• Service Diversion Works/Telecommunication works• Site Clearance

Construction – Minor Contracts (Direct)


• Traffic Management• Road Sweepers• Materials supply

• Geotextiles/Geogrids• Highways Materials• Aggregates• Concrete• Steel

• Plant• New Service Works• Gates, Cattle Grids• Fencing• Drainage• Fuel• Security• Waste Management• Signing and Lighting

Construction – Civil Opportunities


Construction – Turbine Foundations


Material Supply• Blockwork, Stone and Slates• Timber Frames/Trusses• Security Doors & Locks• Furniture• Palisade Fencing

Plant• Generators• Pumps• Scaffolding• Machinery

Specialist Services• Domestic Wiring Services• Plumbing/Heating• Fire Alarms• Security Alarms• Telecommunications

Construction – Substation Control Building


Construction – Electrical Opportunities

Electrical DesignSwitchgear (132kV/33kV/690V) Supply, Installation and CommissioningTransformer (132kV/33kV & 33kV/0.69kV) Supply, Installation and CommissioningCables Supply and InstallationCable JointingHV TestingSAP ProvisionPanel FabricationGenerator Supply


Habitat Restoration• Fencing• Turf translocation• Planting and seeding• Scarification• Ground Improvement• Hydrological works

Plant• Cranes• Piling Rigs• Excavators, dumpers,

rollers• Specialist Plant• Generators &

Bowsers• Fuel Supply• Pumps• Scaffolding• Safety Fencing

Miscellaneous• Training• Team Building• Accommodation &

Welfare• Hospitality• Vehicle Hire• Fencing• Wall construction

Trades • Fire/Security Alarms• Painting & decorating • Waterproofing• Drainage Contractors • Steel fixing • Materials testing • Watching briefs

Other suppliers


Mynydd y Gwair Wind Farm Procurement opportunitiesKirsty Curry

1. The 4 key stages in the life of a wind farm2. Typical spend analysis3. How we buy4. What we look for in a Supplier5. Registration


The 4 key stages in the life of a wind farm

The 4 key stages in the life of a wind farm

Development (1 to 5 years)

Implementation

Construction (up to 2 years)

Operation and Maintenance (approx 20 years)


Typical spend

Typical spend profile

Development – 2.5%

Implementation – 2.5%

Construction – 65%

Operation and Maintenance – 30%

Actual spend - Novar 2 Wind Farm

Total £62M

Development – £1.5M (2.42%)

Implementation – £3.2M (mostly Grid Works – all regional) (5.16%)

Construction – £37.5M (of which £29M on WTG and £6M civil works) (60.5%)

Operation and Maintenance – £20M over 20 years (£16M on WTG) (33.3%)


Local spend

Where we would spend across a typical £6m civils contract :

Local within 60 miles 75% (about £4.5m)

Rest of region 15% (about £900,000)

Rest of UK 10% (about £600,000)

Europe 0.05% (a few thousand pounds!)


What are we doing to support Localism?

Attending Business events

Providing a potential list of sub contractors with our ITT’s

Contractually obliging Contractors to provide data on construction spend and where it is placed

Contractually oblige Contractors to identify and evidence spend profile throughout the lifetime of the contract


Registration

Why you should complete a registration form

We will use the information to help build up a picture of supply chain in region

We will issue this to our bidders at bid stage

We will ask them for feedback on how much work they plan to place “locally”

We will make a condition that ultimately they tell us what they actually did


How we buy

Detail of the types of things we buy

But how do we actually buy them – what is our process?

And what are we looking for in a supplier?


How we buy – Construction Phase

Direct from supplier

– subcontracted through Tier 1 Purchase orders, framework

contracts and individual contracts

– Always same process but as risk/value rises so does complexity

Identify and prequalify (see later slide), choose bidders and issue bid document

Use NEC3 for construction contracts

Assess, negotiate, award and manage the delivery

RWE

Tier 1Turbine

Tier 1 Turbine O&M

Tier 1Civils

SubContract Plant

SubContract

Labour

SubContract

Aggregate

Tier 1 Electrical

SubContract Cable Laying


How we buy

• Identification of suppliers: Meet the Buyer events Direct approach by suppliers Use of RWE web portal:

www.rwe.com/web/cms/en/90812/suppliers/

• Define project strategy (how we divide up the project)• Develop contract strategy includes market analysis and this is the stage

bidders are decided• We try to make sure regional suppliers are represented• We use Tier 1 Contractors for civil & electrical packages to maintain a

one stop shop and limit interfaces (resource issue)• Our Tier 1 Contractors must have design capability

http://www.rwe.com/web/cms/en/90812/suppliers/

http://www.rwe.com/web/cms/en/90812/suppliers/


How we buy

Issue Pre-Qualification documents (where necessary)

Compile bid documents and issue

• Instructions, Commercial and Technical sections

Site visits and will engage in dialogue in bid period

Receive bids assess and negotiate

Award contract

Manage through build programme to completion


Prequalification

How do we prequalify suppliers? Company Information – 4 years audited accounts, workforce profile

Health and Safety – OHSAS 18001, CDM capability, stats (LTIF, prosecutions etc)

Quality – ISO 9000, details of Quality Management System

Environment – ISO 14001, details of Environmental Management System, Policy

Organisation, Management and Staff – Structure Chart of Senior Management and responsibilities

Technical Capability and Experience – detailed information and reference sites

Region of Supply – Information regarding preferred areas of operation

Commercial and Contract – FIDIC and NEC3 experience


Bid assessment (example)

> Safety Record> Tender price> Programme> Ability to commence the works on the starting date> Proposed activity schedule and payment profile> Technical capability and resource availability> Compliance with the Contract Data and extent of qualification to

Works Information > Proposed conditions or exceptions> Project organisation, line of communication and delegation within

the Contractor’s organisation> Contract management and execution of the works at site> Quality assurance systems> Environmental management, issues/record


Suppliers Capability

In summary what are we looking for?

The highest health and safety standards

Appropriate quality levels – ISO 9000 series as appropriate

Best value / life cycle basis

Creditworthiness

Reliability


Supplier Life Cycle – How to deal direct with RWE

RWE Process for Supplier Information Management - Supplier Life Cycle Introduction

The Supplier Life Cycle (SLC) module has been introduced as an additional part of our SAP system.

This tool will allow suppliers to self-register and upload documents and data onto our system, via our internet portal.

If considered suitable, the supplier can also be invited to conduct self-assessment questionnaires and record the results on our SLC system.

It will also allow for specific timely reminders to be sent to companies, so that they can update the information we hold on our system.

Use of the SLC system will improve the quality and quantity of supplier information that we hold in RWE.


Supplier Life Cycle System

Current Uses for Supplier Life Cycle

Typical information held for a supplier :

Basic contact information – key contacts Copies of certificates Copies of recent accounts Questionnaire results Supplier Classifications Recent meeting minutes and briefings

Filters for categories of qualified suppliers

Information is held in a central system, so that all areas in RWE Procurement can access the same information.


Supplier Life Cycle SystemUnique RWE Innogy categories

Main Innogy Category : Renewable Energy WN01 Onshore Wind WN01-1 Onshore Wind Turbines WN01-2 Onshore Wind Electrical WN01-3 Onshore Wind Civil works WN01-4 Onshore Wind Ground investigation WN01-5 Onshore Wind Met mast installation WN01-6 Onshore Development Services WN02 Offshore Wind WN02-1 Offshore Turbines WN02-2 Offshore Foundations WN02-3 Offshore Cables WN02-4 Offshore Electrical & Substations WN02-5 Offshore Vessels and Logistics WN02-6 Offshore Services WN99 O&M WN99-1 Offshore O&M Services WN99-2 Offshore O&M Parts WN99-3 Onshore Wind O&M Services WN99-4 Onshore Wind O&M Parts WN04 Hydro WN04-1 Hydro services WN04-2 Hydro electrical WN04-3 Hydro mechanical WN04-4 Hydro civil works


On the Supplier Portal page (https://supplier.rwe.com/irj/portal)click on Registration

Registration


Registration


RegistrationUnique RWE Innogy categories


Thank you very much for your attention.

rwe mynydd y gwair supply chain event - tim james / kirsty curry

Engineering