Infrastructure Horizons: Nuclear A practical guide for contractors seeking to enter the nuclear civil engineering sector. Contents

01 CONTENTS 02 INTRODUCTION 03 THE NUCLEAR CULTURE

06 NEW BUILD 13 DECOMMISSIONING 22 DEFENCE 26 OPERATIONS 29 MAIN CONTRACTORS

32 THE QUALITY CHALLENGE 35 THE SKILLS CHALLENGE 39 THE SECURITY CHALLENGE

43 RESOURCES 44 SUPPORTING BODIES – NATIONAL 45 SUPPORTING BODIES – REGIONAL 47 APPENDIX A – QUALITY 51 APPENDIX B – SKILLS

01 Introduction To the Toolkit

The UK nuclear sector will offer significant long-term While the guide is primarily aimed at these smaller, lower tier opportunities for contractors across the UK. Whether it is firms, we hope that it will have a wider audience who may in building new nuclear power stations, maintaining and find its contents useful, whatever their position in the supply upgrading those already in existence, decommissioning chain and experience level. former facilities, or in work associated with the UK’s This toolkit has been delivered with support from the defence nuclear capability, there is likely to be considerable CITB Growth Fund. The fund provides financial backing to requirement for the skills of the UK construction industry. encourage innovative ideas that deliver management training The prospective workload is immense with each of the next benefits across the industry. generation of nuclear power stations to be built in the UK We are indebted to the CITB for their sponsorship of the expected to cost around £8 billion each. Total commercial toolkit, and to all of those who have been involved in its turnover of the UK nuclear supply chain for 2010/11 update whether that be by reviewing and adding to specific was estimated at £4bn and five sites are earmarked for sections or as members of the Nuclear Forum itself. development by 2030. These opportunities will not only be dispersed geographically. While there has been a perception that nuclear works will only be suitable for those with long-experience of the nuclear sector, this is not the case. While some contractors have been supplying to the nuclear sector since its earliest days in the mid-1940s, it is unlikely that the UK’s existing nuclear civil engineering capacity will be able to meet the demands if future workload predictions are realised. As such, the forward programme could provide opportunities for contractors of all experience levels. It was with this in mind that in 2009 the Civil Engineering Contractors Association’s Nuclear Forum proposed the creation of a guide to the nuclear industry for contractors who are looking to enter the sector. The guide – of which this is an updated version - is primarily aimed at those who might work as lower tier suppliers on future nuclear projects, and is intended to provide an overview of the sector, identifying the key players and opportunities. It also outlines the differences between the nuclear sector and other forms of civil engineering that such firms will need to be aware of, and address within their business, if they are to be successful in breaking into the sector.

2 Introduction to the toolkit The Nuclear Culture

It is easy for new contractors to be intimidated by the New entrant contractors should establish their own existing nuclear sector. Certainly there can be no doubts that the experience levels, and then identify and target opportunities rules and procedures that exist in the nuclear sector can be that are appropriate to this experience. very different to those found elsewhere in the construction It is also important to recognise that the nuclear sector industry. During the preliminary market testing for the first is not the only part of the construction industry where version of this guide, many of those polled said that one contractors have to work under rigorously regulated of the main things that held them back from targeting the standards. While nuclear sector experience may be the nuclear sector was a lack of understanding of what many ideal for many clients, they will also look favourably on described as the ‘nuclear culture’. This leads to an obvious experience built up in other safety critical sectors. Such first question for any contractor seeking to enter the sectors will include (but not be limited to) defence, oil and market: gas, petrochemical, aviation, rail, and asbestos management. Do I need previous nuclear experience? Contractors with experience in these sectors will require It will perhaps come as a surprise to new-entrants to less work in order to meet the standards required for works discover that the answer to this question is no. The reason higher up the ‘nuclear scale’ than those that are starting for this comes down to the definition of ‘nuclear’ work. from scratch. While the word nuclear may conjure up images of work at Having established where they are on this sliding scale, the heart of a reactor, or with radioactive waste, the truth of contractors can then build up their experience, increasing the matter is often more mundane. confidence with clients to the point where they can One of the key messages that should be taken by readers understand and bid for those projects that require greater of this guide is that much of the work that is procured by experience levels. ‘nuclear’ clients involves no interaction with any form of An alternative to this approach would be to establish a radioactive material. partnership with another company with significant nuclear It is vital to recognise that while such radiological works sector experience. In these cases such a joint venture do exist, and do require contractors who have the highest would allow the nuclear experienced firm to manage both levels of experience and capability, they are at the top end companies in terms of nuclear-specific requirements, while of a sliding scale. As you come down the scale there will be benefitting from the new entrant contractor’s specific civil a far greater amount of work that is not directly related to engineering capabilities which it may not be able to deliver nuclear safety (approximately 80 per cent of new build is itself. not nuclear specific but similar to other major construction projects). At the bottom end of this scale there will be considerable demand for projects such as site infrastructure “Contractors should target or demolition that may only demand the same skills and projects that are appropriate experience that would be required on any more traditional civil engineering project outside the nuclear sector. to their experience.”

3 The Nuclear Culture Contractor commitment Understanding the client It is clear that by developing its experience, a contractor will As in any other sector, the key to success in the nuclear improve the options available to it in terms of bidding for industry is knowing your customer. Establishing a work on nuclear projects. However it must be recognised connection with potential clients will allow your company that by its very nature, experience can only be built up to better understand the culture that will be expected in over time. As such, any contractor seeking to enter the your business in order to work for that organisation. It will nuclear market must take a long-term view, developing help contractors to quickly identify which opportunities a strategy for its entry into the sector. While it may be from the client will be appropriate for their business, that with effective preparation, your company may be and what steps they will need to take to meet the client successful in the first project that it bids for, it is equally requirements for the work. One issue that many clients possible that it may take a series of unsuccessful bids before reported during interviews for the first edition of the you understand and can put together a winning proposal. guide was the problems that they had experienced with This may involve considerable up-front investment which suppliers failing to understand the requirement, leading may only be recouped following the successful delivery these companies to bid for work that they did not have the of a number of projects. While the projected spending in capability to deliver. Fortunately the various clients who the nuclear sector may make it attractive to contractors, are active in the nuclear industry are generally very open particularly if work in other parts of the industry is to supply chain engagement, whether through face-to-face dwindling, it is not an area where contractors can dip in and meetings, supplier conferences or online web portals. For out. As such, any contractor seeking to enter the nuclear new entrant contractors it is vital that any opportunities market must secure commitment to this strategy from to be involved with any such engagement are grasped. the highest level within the company, communicating Further details of the four industry subsectors (new build, this approach throughout the company to ensure that the decommissioning, defence and operations), the clients that behaviours of its employees are refocused to meet the are active in each, and their engagement activities can be specific demands of the sector. It is also likely that those found in the next chapters. contractors who are successful in breaking into the nuclear It is also important to understand the way the industry is market will have done so as a result of setting up dedicated regulated. All civil nuclear facilities have to be licensed by nuclear teams in their organisation, focussed exclusively on the Office for Nuclear Regulation (ONR). The ONR sets out the sector. licence conditions that each licensee must comply with in Finally, contractors will also be expected to be financially different ways, such as in a safety case to meet each stage robust, as clients will pay particular attention to a of a plant’s life, or with arrangement and procedures to company’s finances before appointing them to avoid the meet a license condition. The conditions set out the general costs and delays associated with supplier failure on their safety requirements to deal with the risks on a nuclear site. projects. The ONR also has memorandums of understanding with the Environment Agency (EA) and Scottish Environment Protection Agency.

4 The Nuclear Culture The Nuclear Culture continued

Guide 1 – Strategy For each question you should consider how your business might respond. Your response may lead you towards actions that you might need to take in order to deliver this strategy. • Have you identified the particular skills or capabilities that will make it competitive in the nuclear sector, and the clients that are likely to be in need of those skills? • Given your experience, have you identified what work opportunities will be open to you? • Have you considered developing a joint venture with a more experienced contractor? • Do you have, or can you secure, board level commitment within your company for any move into the nuclear sector? • Are you able to establish a specific team to target work in the nuclear sector? • Do you have sufficient funding available for the upfront investment required to deliver your strategy to enter the nuclear sector? • Do you have all the information you require to make an informed decision on whether such a move will be successful?

5 The Nuclear Culture New Build

6 New Build New Build

New build The main driver for many contractors developing interest in • The ODR and the EA are undertaking a futher GDA of the nuclear sector has been the prospect of a wave of new the Advanced Boiling Water Reactor developed by nuclear power stations being built in the UK. The first new Hitachi-GE Nuclear Energy Ltd; nuclear plant - Hinkley Point C - is planned to come online in 2023 after the UK government and EDF Group reached • Legislation has been passed to ensure that operators commercial agreement on the key terms of a proposed of new nuclear power stations must have secure investment contract for the Hinkley Point C nuclear power financing arrangements in place to meet the full station in Somerset. This paves the way for the construction costs of decommissioning and their full share of waste of the first new nuclear power station in the UK for a management and disposal costs; generation. In addition, a new co-operation agreement with • The OND is working with the supply chain and nuclear Hitachi and Horizon has been confirmed with the aim of reactor vendors and operators to help create and being able to agree an in principle guarantee, through the support a globally competitive UK supply chain. It UK Guarantees Scheme, by the end of 2016 to support the will also act as a gateway to market information, financing of a new nuclear power plant at Wylfa. contact networks, activities and organisations to help The Coalition Government published its programme in June the UK supply chain fulfil the opportunities presented 2010, which set out its vision that nuclear should play an by new nuclear opportunities. important role – alongside renewable energy and Carbon The government has also published a Nuclear Industrial Capture and Storage (CCS) – in the UK’s future energy mix. Strategy which identifies priorities that government and The ONR was launched in 2011 to remove any unnecessary industry will work on together in a long-term partnership. barriers to nuclear new build and the Department of It aims to provide more opportunities for economic growth Energy and Climate Change (DECC) is working to plan and creating jobs through an increased share of all aspects for and safeguard the UK’s future energy supply, of which of the nuclear market. Details of the strategy can be found new nuclear power stations are an important component. at the link below and covers the following: The Office for Nuclear Development has been created to remove any unnecessary barriers to new build. The Current view: UK capabilities are assessed in the NIA Department for Energy and Climate Change is undertaking Capability Report and the Review of the Civil Nuclear R&D a programme of regulatory reform of the nuclear regulator, Landscape in the UK. to ensure it remains capable of effectively addressing the Near-term: Near-term actions are needed to take regulatory challenges ahead. DECC approves activities advantage of existing opportunities in the sector, involving radioactive materials (known as justification), particularly in new build, are identified in the Nuclear including the development of new nuclear installations. To Supply Chain Action Plan. date: Long-term opportunities: The future vision for the sector • Six new Planning Policy Statements have been approved is clearly articulated by industry in the Nuclear Industrial by Parliament; Vision Statement and by government in the Long-Term • Two nuclear reactor designs, Westinghouse’s AP1000 Nuclear Energy Strategy. and Areva’s EPR, have been justified;

7 New Build Long-term R&D: R&D required to ensure long-term To ensure that opportunities for local businesses are security of supply and commercial benefit in the UK maximised, EDF Energy is working closely with the Chamber are identified for a range of future scenarios in the R&D of Commerce in each area. Roadmap. The majority of the procurement activity for both Hinkley https://www.gov.uk/government/publications/nuclear- Point C and Sizewell C will be undertaken through EDF’s industrial-strategy-the-uks-nuclear-future. CNEN and CNEPE teams in France with UK input and support from the project team in the UK. Who is building new nuclear power stations in the UK? NNB Generation Co has appointed EDF DIN as the EPC Contractor for the design and delivery of the projects: EDF The new plant will be built by three new build consortia; DIN also operates as the Architect Engineer (AE) through its EDF Energy, Horizon Nuclear Power, and NuGeneration offices in the UK and France. Ltd (Nugen). EDF Energy will use the European Pressurised Reactor (EPR) design from Areva. Hitachi, which acquired Tier 1 contracts Horizon Nuclear Power in 2012, plans to build Advanced Not all procurement will be undertaken directly by EDF Boiling Water Reactors. Nugen has chosen three AP1000 Energy. There will be over 150 Tier 1 contracts that will nuclear reactors from Westinghouse. cover civil and building works; mechanical, electrical HVAC and Instrumentation and Controls installation; specialist EDF Energy services such as the Nuclear Steam Supply System (NSSS); Who are they? and supply of mechanical and electrical equipment items. EDF Energy is one of the UK’s largest energy companies. It A number of these contracts have already been awarded, operates eight out of the UK’s ten nuclear power stations so please note that when you register your interest, your and has plans to expand two of these sites, Hinkley Point capabilities will be made available to EDF Energy, their Tier and Sizewell, by building four new nuclear reactors. 1 bidders, and their appointed Tier 1 contractors (see terms and conditions). Opportunities Contract awards: The multi-billion pound investment in the proposed Hinkley Point C nuclear power plant in Somerset, followed by a • Site Preparation Works: Kier/BAM jv (now complete) second proposed development at Sizewell C in Suffolk, will • Site Remediation Works: Hydrock Ltd create commercial opportunities for businesses both during the construction phase and once the plants are operational. • Earthworks: Kier/BAM Jv A robust supply chain is vital to the success of these • Independent Third-Party Inspection Authority: Lloyds/ significant projects. EDF Energy is keen to work with a Apave jv wide range of businesses – international, national and, • Construction Power Supply Network: UK Power importantly, local firms that are located near the two sites. Networks

8 New Build New Build

• Nuclear Steam Supply System (NSSS): Areva (mutual used correctly. There is no registration fee and registrations agreement contract) can be updated on line as business circumstances change/ develop. • Temporary Jetty civil construction: Dean and Dyball Details on how to enter AREVA’s supply chain can be found • Jetty Materials Handling Equipment: Fairport at: http://suppliers.areva.com/EN/home-139/epr-uk.html. Engineering Minor local road improvements: • Aggregate Industries Main Civils: • Bouygues TP/Laing O’Rourke JV Marine • Costain Turbines • Alstom Contact Visit the EDF Energy New Nuclear website and register your interest as a potential supplier: http://www.edfenergy.com/ about-us/energy-generation/new-nuclear/ Information on how to register is provided in the portal which will guide suppliers to the correct location. EDF Energy has been working with the Somerset Chamber of Commerce for Hinkley Point C and the Suffolk and Norfolk Chambers of Commerce for Sizewell C and has developed listings of local suppliers in both areas along with a national listing. The information provided will be shared with the Tier 1 contractors, when appointed, to help develop specific supply chains. In order to facilitate this, care should be taken to accurately describe capability, ensure that contacts and websites are up to date and that the keyword field is

9 New Build Horizon Nuclear Power

Horizon Nuclear Power is a UK energy company developing It will carry out all development activities, including a new generation of nuclear power stations. A wholly enabling works, securing the site licences and development owned subsidiary of Hitachi,Ltd. it plans to provide at least consent orders as well as running all public consultations. 5,200MW of new power station capacity to the UK, enough Horizon Nuclear Power will be the owner-operator and, as to power around 10 million homes. the Site Licence Company (SLC), is ultimately responsible for constructing, operating and later decommissioning its Horizon was formed in 2009,. In October 2012, Hitachi Ltd power plants. acquired Horizon Nuclear Power from the previous shareholders E.ON and RWE npower. Hitachi described it’s In the main, the company will develop and place contracts acquisition of Horizon as part of a 100 year commitment to with a number of strategic partners, often referred to as Tier the United Kingdom. 1 suppliers. The strategic partners - Tier 1’s - will control the procurement, delivery and quality of sub-contracting Horizon is looking to develop at two sites: “Wylfa Newydd” services that are required on behalf of their client. They will on the Isle of Anglesey, and Oldbury-on-Severn in in South be responsible for all services, works or goods and for the Gloucestershire. Each site will see a peak construction quality and performance of their supply chain (including workforce of up to 6,000 workers and up to 1,000 every tier of sub-contractor). permanent roles. Designs are currently being developed on the assumption of a two unit first plant at Wylfa, with first As the SLC, Horizon Nuclear Power will adopt a graded power expected in the first half of the 2020s. approach to oversight of the overall supply chain as part of our ultimate responsibility for safety and quality. This Hitachi and Horizon have indicated up to 60% of the value oversight role includes both its Tier 1 suppliers and their of the first plant could potentially go to UK companies. sub-contractors throughout the entire supply chain. Both companies will look to maximise the opportunities available, providing suppliers are capable and competitive Hitachi-GE Nuclear Energy (HGNE) is the reactor whilst assuring the necessary safety and quality technology provider and, as such, is the principle Tier 1 requirements. Rolls Royce and Babcock International have contractor. HGNE will lead a delivery team that will carry already signed Memorandums of Understanding with out the design, equipment provision and build of the main Hitachi. Horizon Nuclear Power is working with national, plant using the intended reactor technology – the UK regional and local government, as well as sector bodies, ABWR. As it develops and expands its UK operations, HGNE colleges and universities to ensure that people and will generate a substantial requirement for goods, services businesses in local communities are well placed to take and works and will be directly responsible for managing advantage of new jobs and supply contracts. their procurement activity. More details for suppliers can be found here: http://www.horizonnuclearpower.com/suppliers.

10 New Build New Build continued

NuGeneration Who are they? NuGeneration is a UK nuclear company owned by GDF Suez and Iberdrola. However, Toshiba has agreed terms with NuGen’s shareholders to take a 60 per cent stake in the company going forward. In October 2009 NuGen secured an option to purchase land on the West Cumbrian Coast from the Nuclear Decommissioning Authority on which it aims to build a new nuclear power station of up to 3.4 GW capacity. NuGen has named its project Moorside. In May 2014, the NDA agreed key commercial terms with Toshiba and its partner GDF Suez to extend a land option agreement that reaffirms the consortium’s commitment to build three reactors at Moorside. The reactors, to come online from 2024, will deliver 3.4 GW of new nuclear capacity. Opportunities NuGen is committed to maximising the use of UK-based suppliers and employees in its Moorside project. It is expected that NuGen will give preference to UK civil contractors who will be clearly involved in the process. NuGen is also keen to draw on existing local expertise in the nuclear industry within West Cumbria. NuGen is currently in the early stages of developing its plan for how it will effectively and proactively involve the supply chain and expect to have more information to share throughout 2014: www.nugeneration.com/supply-chain.html.

11 New Build Other potential UK sites for Nuclear New Build While between them EDF, Horizon Nuclear Power and the GDF consortium account for five planned sites for the development of new nuclear facilities, there are still options available for development at a number of other sites at a later date. The remaining sites and site owners are: Bradwell – this site in Essex, adjacent to the former Bradwell Nuclear Power Station, is owned by EDF but has been put up for sale to other potential operators. Hartlepool – This EDF site has been chosen as one of eight sites where a new nuclear power plant could be built. Heysham – There was a historic grid connection agreement with National Grid for Heysham, which was put in place by British Energy in 2006 before its acquisition by EDF. Given that EDF Energy’s initial plans for new build are focused elsewhere, this agreement was cancelled in 2011. This decision also reflected the fact that land at Heysham will be retained by EDF Energy.

12 New Build Decommissioning

13 New Build Decommissioning

Decommissioning With facilities dating back to the earliest days of nuclear decommissioning process. Instead each site comes under development in the 1940s, the UK faces a considerable task the management of one of six Site Licence Companies: in dealing with the legacy of more than 60 years of civil and • Dounreay Site Restoration Ltd defence nuclear activities. Already many of the country’s former nuclear power plants have ceased generation and • LLW Repository Ltd have entered decommissioning and clean-up, a process • Magnox Ltd that must also be carried out for the UK’s former nuclear • Research Sites Restoration Ltd research sites. • Sellafield Ltd The overall liability for cleaning up these sites has been • Springfields Ltd estimated to be greater than £40 billion. A significant proportion of the spending that will be required to deal with These Site Licence Companies manage the day to day this liability is likely to be channelled to the construction activities on the sites and are responsible for delivering the industry. This spending will fund deplanting and demolition decommissioning and clean-up programme. In 2011/12 activities as well as the construction of new facilities to the Site Licence Companies (SLCs) spent approximately treat and store contaminated materials and waste. £1.6 billion in the supply chain. Since the NDA was created in 2005 it has spent more than £9 billion with the supply The responsibility for decommissioning 19 civil nuclear sites chain. The graphs (below and over page) give an indication sits with the Nuclear Decommissioning Authority (NDA), of where money was spent last year, and what it was spent a public body funded by the Department for Energy and on. Climate Change. The NDA does not directly manage the

RSRL 3% LLWR 2%

Springfields 7%

Sellafield 30% Magnox South 7%

DRSL 7%

Magnox North 15%

14 Infrastructure Horizons: Nuclear The SLCs are responsible for preparing site plans and Opportunities managing the supply chain for the goods and services they A supply chain network database has been created for the need to meet their programmes and suppliers need to use of all suppliers to the nuclear sector and all tiers of the contact them directly regarding potential opportunities. The supply chain, including all those interested in, or wishing to SLCs work within the EU Procurement Directives. become involved in the global nuclear market. The majority use the Public Contracts Regulations, but the Magnox sites use the Utilities Contract Regulations. It is a free networking tool which is designed to be used by This means that requirements are advertised through suppliers or other interested parties. For example it may the Official Journal of the European Union (OJEU) if they help suppliers to find possible partners for collaboration or are valued over the threshold levels. Contracts below help them locate suppliers of particular goods or services. the thresholds will commonly be procured by the SLCs It is keyword searchable across company names, company through advertising opportunities via their web-sites, but business, company address and postcode. For further they may also be advertised at the single portal of HMGs details, please visit: http://sellafieldsites.com/suppliers/ Contracts Finder: http://www.contractsfinder.businesslink. supply-chain-network/. gov.uk/. All OJEU adverts are automatically advertised on Contracts Finder and all NDA direct procurements are advertised through this route. As Magnox use the Utilities Contract Regulations, contracts under the OJEU threshold will commonly be procured through Achilles Utilities Vendor Database of suppliers who are pre-qualified to work for Magnox. In addition, Sellafield, LLWR and Dounreay use a complete tender management (CTM) system to advertise and manage the process of many of their tenders. Contractors will have to be registered on the CTM system prior to use. Details can be found on the supplier websites for NDA and all SLCs.

15 Infrastructure Horizons: Nuclear Decommissioning continued

Spend associated with top 10 suppliers to decommissioning site license companies

£200 million

£150 million

£100 million

£50 million

Design Services Transport R&D Construction £1.1 million £9.2 million £52.2 million £156.4 million Hazardous Materials Removal Utilities Support services Decommissioning £4.1 million £17.4 million £53.5 million £173.2 million Waste Management Facilities Management Engineering £5.4 million £26.7 million £85 million Health & Safety IT Manpower £6.1 million £29.9 million £137.2 million

16 Infrastructure Horizons: Nuclear Parent Body Organisations supply chain at a range of levels below the Site Licence Companies. The site licence companies are owned by Parent Body Organisations, which provide: Further details of the Supply Chain Charter can be found at: http://www.nda.gov.uk/contracts/supply-chain-charter.cfm. • The vision for the SLC in line with the NDA Strategy • Key personnel to be seconded into the SLC to provide the Collaborative Procurement leadership, innovation and management support to the SLC In 2008/09 the NDA and SLCs established a Collaborative to deliver best value for money whilst maintaining high Procurement initiative focusing on aggregating demand in safety, security and environmental standards commodities and medium complexity services across the • Knowledge and expertise in culture change and estate, which over time has been, and will continue to performance management; and develop to include strategic procurements. Collaborative Procurements may include some civil engineering activities • A reservoir of talent in the parent organisation(s), wide common across the estate, which would be advertised in experience and a skill base to be deployed as appropriate. the same manner as for any procurement within the estate.

These PBOs are under contract to the NDA, which opens The following pages provide a short introduction to each the contracts up for competition periodically. site licence company. Supply chain charter N.B. Alongside civil nuclear sites, there is also a requirement to decommission and clean up former defence nuclear sites. While responsibility for the procurement of These activities are dealt with in the section devoted to decommissioning works generally sits with the individual defence. site licence companies, the NDA does play a significant role in co-ordinating these companies in terms of their engagement with suppliers. As part of this process, the NDA has introduced a charter for contractors working across its 19 sites. The aim of the charter is to foster good relationships between all supply chain members. By signing up to the charter, suppliers make a number of commitments covering their dealings with other suppliers, their planning of activities and their performance. It is expected that the signatory to the charter will be the chief executive and/or managing director of the contractor, ensuring that the whole company buys into the commitments made. The NDA currently spends more than £2.8 billion a year, of which circa £1.6 billion enters the

17 Infrastructure Horizons: Nuclear Decommissioning continued

Sellafield Ltd Who are they? Sellafield Ltd is the company that is responsible for safely Opportunities delivering decommissioning, reprocessing, nuclear waste Visit the suppliers section of the Sellafield Ltd website for management and fuel manufacturing activities on behalf of further details: http://sellafieldsites.com/suppliers/. the Nuclear Decommissioning Authority. Sellafield Ltd has sites at Sellafield in West Cumbria and has just transferred ownership of its Capenhurst site to Urenco. Engineering, design and functional support capability are also provided by employees based at its Risley office, near Warrington. Sellafield is a large and complex nuclear chemical facility which has played a pivotal role within the nuclear industry since the 1940s. Calder Hall, located on the site, was the world’s first commercial nuclear power station. Generation started in 1956 and ceased in 2003. Windscale, also located on the site, comprises three reactors. Two of the reactors were shut down in 1957 and the third one was closed in 1981. The Sellafield site is spread across six square miles and is home to more than 1,000 facilities, all performing a wide range of tasks. These include decommissioning the UK’s nuclear legacy as well fuel recycling and the management of low, high and intermediate level nuclear waste. Capenhurst is located near Ellesmere Port in Cheshire. It was home to a uranium enrichment plant and associated facilities that ceased operation in 1982. At Capenhurst, Sellafield Ltd was due to become the UK’s first nuclear site to complete its decommissioning and clean-up programme – and on the way has delivered some of the biggest active area demolition projects ever undertaken in the UK nuclear industry.

18 Infrastructure Horizons: Nuclear Douneray Site Restoration Ltd Magnox Ltd Who are they? Who are they? Dounreay Site Restoration Limited (DSRL) is the site licence Magnox Ltd is owned by EnergySolutions and is the company responsible for the clean-up and demolition of management and operations contractor responsible for 10 Britain’s former centre of fast reactor research and nuclear sites and one hydroelectric plant in the UK. development. The company is responsible for electricity generation at DSRL holds the site licence under the Nuclear Installations Wylfa and Maentwrog, defuelling at Chapelcross, Oldbury Act, the waste disposal authorisation under the Radioactive and Sizewell A, and the decommissioning of Hunterston Substances Act and other necessary legal permits for A, Berkeley, Bradwell, Dungeness A , Hinkley Point A and managing the site closure programme. Trawsfynydd. DSRL operates under contract to the NDA who own the Opportunities site. Visit the suppliers section of the Magnox website for further DSRL is a wholly-owned subsidiary of the Babcock details: http://www.magnoxsites.co.uk/suppliers. Dounreay Partnership Ltd, a consortium of Babcock International Group, CH2MHILL and URS. It is funded by the NDA to deliver the site closure programme agreed with the

Babcock Dounreay Partnership.

Opportunities Visit the suppliers section of the DSRL website for further details: http://www.dounreay.com/suppliers.

19 Infrastructure Horizons: Nuclear Research Sites Restoration Ltd Who are they? D Research Sites Restoration Limited (RSRL) is the site Competition licence company responsible for the closure programme at Magnox Ltd and RSRL are competing the Parent Body Harwell and Winfrith. Winfrith was a major centre for Organisation (PBO) contracts for the Magnox Ltd and RSRL groundbreaking reactor development from the late 1950s sites. An appointed PBO will provide direction, leadership to the 1990s whilst Harwell’s origins go back to the dawn of and management through ownership of the shares in the the UK’s nuclear industry in the 1940s. SLCs. RSRL has held the site licence, waste disposal authorisation The Share Transfer and Contract Award will take place by and other necessary legal permits for managing the site the end of June 2014. Details are available at: http://www. nd since February 2 2009. nda.gov.uk/contracts/competition/magnox-rsrl.cfm. On October 31, 2009, UKAEA Ltd was sold by the UK Atomic Energy Authority to Babcock International Group. Some senior management positions within RSRL are LLW Repository Ltd occupied by staff seconded from Babcock. Who are they? The longer term strategy for Harwell and Winfrith is the The Low Level Waste Repository (LLWR) is the United progressive delicensing of both nuclear licensed sites. The Kingdom’s national Low Level Waste (LLW) disposal facility. NDA’s decision to focus expenditure on hazard reduction It is located on the West Cumbrian coast near the village of means that some work at Harwell and Winfrith will be Drigg. LLWR is designed for the management of solid LLW deferred in the near term. The allocated expenditure for and has operated safely as the principal national disposal both sites for 2012/13 was £58.0m. facility for LLW since 1959. The site has been operated by The key focus is to prepare for care and maintenance whilst LLW Repository Ltd since April 2008. maintaining safe and secure sites. Opportunities Opportunities For further details, visit the suppliers section of LLWR’s Visit the suppliers section of the RSRL website for further website at www.llwrsite.com/suppliers. details: http://www.research-sites.com/suppliers.

20 Infrastructure Horizons: Nuclear Springfields Ltd Geological Disposal Facility Who are they? Geological disposal involves placing radioactive wastes deep Springfields, based near Preston, has provided nuclear fuel within a suitable rock formation where the rock formation fabrication services since the mid-1940s - in fact it was the provides long-term protection by acting as a barrier against first plant in the world to produce fuel for a commercial escape of radioactivity and by isolating the waste from power station. The site has witnessed many changes over effects at the surface such as climate change. There is no the years and today it is run and operated by Springfields facility currently available in the UK. Fuels Limited, under the management of Westinghouse The ONR and the Environment Agency will regulate any Electric UK Limited. future geological disposal facility for radioactive waste in England and Wales. Opportunities In September 2013 the government launched a public All decommissioning work will be advertised in the consultation on the site selection aspects of the Managing European Journal as it arises and will be let under the NEC 3 Radioactive Waste Safely (MRWS) programme. It intends to contract conditions. The responsible person is Paul re-launch the MRWS site selection process in 2014. Dickinson. Contact: 01772 762000.

21 Infrastructure Horizons: Nuclear Defence

22 Infrastructure Horizons: Nuclear Defence

The Coalition Agreement between the Conservatives and Opportunities the Liberal Democrats in May 2010 stated that the Coalition AWE plc has established a dedicated portal for potential Government will maintain Britain’s nuclear deterrent, and suppliers, which includes details of its procurement policy agreed that the renewal of Trident will be scrutinised to and code of practice (http://www.awe.co.uk/business/ ensure value for money. It was also agreed that the Liberal doing_business_with_awe_c0d13.html). Democrats will continue to make the case for alternatives. It is unlikely that any decision on a replacement for Trident Unlike the vast majority of public sector-funded bodies, nuclear weapons system will be taken before 2016. AWE plc is not expected to advertise its contracts through the Official Journal of the European Union. This is due to The delivery date for the first submarine has been put back an exemption from such a requirement for organisations to 2028, while the number of operational missiles carried involved in national nuclear defence. However, AWE plc will be reduced to eight, and the number of warheads requires a substantial provision of works, goods and services reduced to forty. from the supply chain and procures thousands of products Furthermore, the Scottish National Party is opposed to and services every year. This means that the company does Trident, and if it wins the 2014 independence referendum, it business with a wide range of suppliers who must meet its plans to remove all nuclear weapons from Scottish soil. requirements in a timely and cost effective manner. AWE plc In addition to its existing suppliers, AWE is always keen to develop new relationships with all aspects of its supply Who are they? chain. Due to the nature and size of its major projects, there are of course, a finite number of tier 1 contractors who AWE plc supports the UK’s nuclear deterrent, by designing, would be able to deliver such projects on the scale that is manufacturing, maintaining, and decommissioning the expected at Aldermaston and Burghfield. warheads for the Trident submarine-based nuclear weapons system on behalf of the Ministry of Defence. It has two The primary source of contact for suppliers to AWE is major sites - Aldermaston and Burghfield, both in Berkshire. through the organisation’s supply chain management and At the 750 acre Aldermaston site, AWE plc carries out its procurement operations. Contractors are asked to get in research, design and manufacturing activities, while the touch by email ([email protected]) stating your nearby 225 acre Burghfield site is used for final assembly company specialism, your potential areas of interest and and maintenance of nuclear warheads, as well as their later your contact details. decommissioning. AWE plc currently employs around 4,500 staff and over 2,000 contractors. Whilst the AWE sites are owned by the Government through the Ministry of Defence, their management and operation on a day-to-day basis has been contracted out. This contract is held by AWE Management Ltd, a company owned by three partners, Serco, Lockheed Martin and Jacobs Engineering Group.

23 Infrastructure Horizons: Nuclear Babcock BAE Systems Who are they? Who are they? Babcock owns and operates major dockyard facilities at BAE Systems Submarine Solutions is the company that Devonport and Rosyth. Devonport carries out a range of has been responsible for the development and building of support and deep maintenance work on both surface ships the UK’s fleet of nuclear powered submarines. From HMS and nuclear-powered submarines whilst Rosyth does similar Dreadnaught in 1963 to the launch of the first new Astute work on surface ships ranging from the Royal Navy’s current Class submarine, all of the company’s nuclear submarines aircraft carriers through to sophisticated mine hunters. have been built at its dockyard at Barrow-in-Furness in Rosyth is also the assembly site for the UK’s two new Cumbria. aircraft carriers. Opportunities Babcock also manages the Clyde Naval Base, which is With work on the current Astute class submarines planned in due course to become the operational base for themselves in full swing, the opportunities for work coming all of the Royal Navy submarine flotilla, as well as providing out of that programme have long-since passed. similar services at the Devonport Naval Base that is co- located with Babcock’s dockyard business. It is likely that any future civil engineering opportunities at Barrow-in-Furness would be linked to works to prepare the Opportunities site for any Trident replacement project to be delivered at the site. While the coalition Government has confirmed its At Babcock a key strategic objective is to enhance and grow commitment to maintaining the UK’s nuclear deterrent, our business by offering our customers greater availability the industry is waiting for further details of the timing and of their assets at lower total cost. Developing a supply scope of any renewal programme. As such, it is unclear chain with the capability to manage risk, in a sustainable at this time as to whether there would need to be any way, on technically complex projects is fundamental to substantial civil engineering works carried out at Barrow to this objective. Its relationships with its customers are long support any of the activities associated with the renewal of term and this tends be reflected in its relationships with key Trident. suppliers. For more information on supply chain opportunities, Babcock is committed to the Government’s SME agenda visit: http://www.baesystems.com/our-company-rgb/ and will advertise relevant opportunities for suppliers corporate-responsibility/working-responsibly/working-with- on their Contract Finder website. More general enquiries suppliers?_afrLoop=623405952524000. should be directed via its Procurement Director Tim Clay, [email protected].

24 Infrastructure Horizons: Nuclear Defence continued

Rolls-Royce Who are they? Rolls-Royce Marine Power Operations are part of the global Rolls-Royce engineering group. The company operates two licensed nuclear sites in Raynesway in Derbyshire. The first of these sites is known as the Neptune site, and houses a low energy nuclear reactor used in the development of nuclear reactor designs for nuclear submarines. The second site is a Nuclear Fuel Manufacturing facility, which the company uses to manufacture reactor fuel cores for these same nuclear submarines.

Opportunities For more information on supply chain opportunities, visit: http://www.rolls-royce.com/about/suppliers/.

25 Infrastructure Horizons: Nuclear Operations

26 Infrastructure Horizons: Nuclear Operations

British Energy Who are they? EDF has acquired a controlling interest in British Energy Activities formerly carried out by Sellafield Ltd at Group plc. British Energy delisted from the London Stock Capenhurst will be transferred to CNS. This includes Exchange on 3 February 2009 and is now a part of EDF S.A. decommissioning and storage, as well as the processing of government-owned by-product/legacy material from The company owns and operates eight nuclear power uranium enrichment. stations and two types of nuclear reactor: the advanced gas-cooled reactor (AGR); and a pressurised water reactor Opportunities (PWR). Sizewell B is the only PWR nuclear power station in Details about Urenco’s supply chain can be found here: the company’s portfolio. http://www.urenco.com/page/19/Nuclear-fuel-supply- chain.aspx. Opportunities Given the fact that British Energy’s sites are all operational nuclear power stations, rather than those that are in construction or decommissioning, there are fewer opportunities for major projects through the company. Supply chain opportunities can be found here: http://www. british-energy.com/. URENCO Who is URENCO? In December 2012, the NDA completed the transfer of its Capenhurst site to Urenco subsidiary Capenhurst Nuclear Services (CNS). The 60-year-old site was previously split into two parts. One part is owned by the NDA and was formerly operated by Sellafield Ltd. The other part of the Capenhurst site comprises Urenco’s operating centrifuge uranium enrichment plant. CNS has now taken ownership of the NDA portion of the site to create one nuclear-licensed site.

27 Infrastructure Horizons: Nuclear Springfields Fuels Who are they? In 2005, responsibility for the assets and liabilities for Springfields transferred to the NDA. Springfields Fuels Limited was created to run the site, which was managed and operated by Westinghouse Electric UK Ltd on behalf of the NDA. Springfields main activities are: • Oxide fuels for Advanced Gas-cooled and Light Water Reactors, as well as intermediate fuel products such as powders, granules and pellets. • Manufacture of Uranium Hexafluoride • Processing of residues • Decommissioning and demolition of redundant plants and buildings. Details of supply chain opportunities can be found here: https://supply.westinghousenuclear.com/Main/Welcome. aspx.

28 Infrastructure Horizons: Nuclear Main Contractors

29 Infrastructure Horizons: Nuclear Main Contractors

Balfour Beatty Costain The UK’s largest contractor has a long history of work in Costain is a leading engineering solutions provider to the nuclear sector, having been involved in the construction the nuclear industry. The company has expertise in of Berkeley Nuclear Power Station beginning in 1957 decomissioning and work management, fuel processing and right through to three current day projects including manufacture through to defence. the delivery of a new sludge processing plant as part of For more details, visit http://www.costain.com/engineering- decommissioning work at Sellafield. tomorrow/nuclear-process/meeting-the-need.aspx For more details visit www.balfourbeatty.com/power Kier BAM Nuttall Kier has a 30 year history of work in the nuclear sector, BAM Nuttall and geotechnical division BAM Ritchies having carried out considerable work at Sellafield both provide an extensive civil engineering and construction during the sites operational period and also during capability for the nuclear power generation, decommissioning. This has been supplemented by work in decommissioning and defence sectors. BAM has nuclear both the civil and defence nuclear sectors. projects experience at sites around the UK, including For more details, visit http://www.kier.co.uk/markets/ Sellafield, Dounreay, the AWE and Magnox power station energy-and-waste.aspx sites. Recent projects include works to isolate a shaft that had been used for waste disposal at Dounreay; and Laing O’Rourke decommissioning former submarine refitting facilities at Rosyth dockyard. The company is actively pursuing Laing O’Rourke is an international provider of engineering opportunities in the nuclear new build sector. and construction solutions. The company has many years of experience in both nuclear new build and decommissioning. For more details, visit http://www.bamnuttall.co.uk/Sect_ Nuclear.html For more details, visit https://www.laingorourke.com/our- work/our-sectors/power.aspx Carillion Carillion and its antecedents have been involved with the Morgan Sindall nuclear industry since the 1950s; from the construction of Morgan Sindall has a long track-record of designing and Chapelcross, Hunterston A and Trawsfynydd Magnox Power delivering complex assets in the nuclear industry and in Stations to its recent projects in support of the Nuclear highly regulated environments. The company is actively Decommissioning Authority’s mission. Carillion is also a engaged in the new build programme. founding member of ACKtiv Nuclear – its long standing joint venture with Atkins and Jacobs E&C Ltd. For more details, visit: www.professionalservices. For more details, visit www.carillionplc.com morgansindall.com

30 Infrastructure Horizons: Nuclear Skanska Tarmac Skanska has a large UK operation with significant presence Tarmac has provided innovative solutions for the in the power, infrastructure, tunnelling and related sectors construction, operation, maintenance and decommissioning as well as a specialist foundation and ground engineering of nuclear power stations for the past 50 years. Tarmac has operation. Skanska has a long track record of working on a proven track record in the operation of site-based plants nuclear projects in Sweden and Finland and in the UK has for nuclear facilities, including Sellafield, AWE Burghfield worked on seismically qualified structures for the MOD all and Faslane. of which required interfacing with the NII. Tarmac also has expertise in the provision of products that ensure safe management and has been a key supplier to For more details, visit www.skanska.co.uk contractors working at Sellafield for many years. Sir Robert McAlpine For more details, visit http://lafargetarmac.com/sectors/ Sir Robert McAlpine has a strong history of working in the energy/nuclear/ UK civil nuclear sector having designed and built six of the UK’s nuclear power plants including one of the earliest VINCI at Bradwell, and also one of its most recent, completing Torness in 1989. VINCI has significant experience of the UK nuclear sector through a number of its subsidiaries. VINCI Construction The company is also active in the decommissioning sector, UK – formed by bringing together Norwest Holst and having built a number of waste management and fuel Taylor Woodrow – can draw on experience from building reprocessing facilities at Sellafield. In recent years the the last new build nuclear power station in the UK at company’s activities have been concentrated at Sellafield. Sizewell B, as well as more recent work with the Silos Direct For more details, visit http://www.sir-robert-mcalpine.com/ Encapsulation Plant as part of the decommissioning at services/?serviceId=14319 Sellafield. Meanwhile VINCI Construction Grands Projets has worked on 80% of France’s nuclear power plants. For more details, visit http://www.vinciconstruction.co.uk/ Sectors/New-Nuclear.html

31 Infrastructure Horizons: Nuclear The Quality Challenge

Infrastructure Horizons: Nuclear The Quality Challenge

The Quality Challenge In the research for this guide, many potential new entrant such as ISO 9001, with the SLC’s playing only a limited role suppliers voiced concerns about whether they would be in monitoring and surveillance. able to meet the quality requirements of working on a A key message for those using this guide is that many of the nuclear site. civil engineering work opportunities on ‘nuclear’ sites will be This remains one of the key areas of confusion in relation at this lower end of the quality grading scale, and will have to the nuclear construction sector. While it has been noted little or no involvement with nuclear material at all. earlier that the nuclear civil engineering sector typically As such, it is vital that contractors are aware of the quality works to higher levels of quality management than other grading of any project prior to bidding for work to allow parts of the wider construction industry, it is not the case the contractor to ensure that its capability in terms of that all activities are carried out to a single uniformly high quality management matches up to the requirements of set of standards. Clearly it would be of questionable value the contract. A knowledge of such grading, which should be to apply the extremely strict quality control procedures available from the client, will also open the door to much demanded for work on a new reactor to non-safety critical so-called ‘nuclear’ work to contractors who may have felt works elsewhere on the site. that they would not have an opportunity to bid for it as a For this reason activities tend to be graded according to the result of their lack of nuclear experience. likely effect that any failure might have, be that in terms of Is it essential that contractors have ISO 9001? security, health and safety, environmental or commercial impact. In broad terms ISO 9001 is a minimum expectation for contractors working in the nuclear sector. However it At the highest level for activities that will have a critical should not be seen as a box that, once ticked, covers a role in the safety of the facility, which in civil engineering company’s quality assurance requirements. While ISO 9001 terms could include major structures on the site, it is not certification tells you that a contractor has been accredited, unusual for the SLC to take an extremely active role in the contractors should expect that they will be investigated management of quality. This would include setting the at tender stage to ensure both that they conform to the high level quality plan, specifying in detail every aspect of expectations of an ISO 9001 registered company, and the activity, and then carrying out inspection of work and also that they understand the specific nuclear industry materials right the way down the supply chain. This could requirements for quality assurance above and beyond those be further supplemented by inspections carried out by covered by ISO 9001. This is likely to involve client visits the Nuclear Installations Inspectorate, in its role as safety to reference sites provided by a contractor to see evidence regulator. that the quality management systems identified at bid are For lower graded activities, this might mean that an SLC actually embedded within the company. allows a contractor to work under its own company quality assurance system, based on recognised industry standards

Infrastructure Horizons: Nuclear Guide 2 – Quality Are the health and safety requirements stricter on • Do you have experience of working under a recognised nuclear sites? quality management system? The standards should be exactly the same whether you • Can you fully demonstrate this experience to a level that are on a nuclear site or a standard construction site. The will satisfy clients? legislation that applies is exactly the same. The primary legislation is the Health and Safety at Work Act, which • Do you understand, and can you deliver on, the quality any contractor should be familiar with. Then there is the management requirements for those clients that you Construction Design and Management Regulations 2007, hope to work for? which should also be well known to any contractor. • If you have answered no to the previous question, have The major difference is that the nuclear Site Licensee will you identified how you can meet this requirement prior to also have a direct interest as part of their licence conditions. any competition for work from the client in question? Security considerations may well be very different to those • Are you ISO 9001, ISO 14001 and OHSAS 18001 that they normally experience. registered? Further information about nuclear quality standards • Is your company’s health and safety performance as good as, or better than, the average for UK civil engineering For information, CECA has also provided a further brief contractors? overview of the quality management requirements for Site License Companies, and their relevance to civil engineering contractors, which can be found in Appendix A.

Infrastructure Horizons: Nuclear The Skills Challenge 35 The Skills Challenge The Skills Challenge

Skills As discussed earlier in this guide, the anticipated the specific issues that relate to work on such sites. This programme of new nuclear work for UK civil engineering will include an understanding of the nuclear industry, contractors presents both opportunities and challenges for the required behaviours on-site; it’s highly regulated the industry. environment, and the importance of doing the job to the required specification first time and every time. One of these challenges will be to ensure that the workforce has the required skills to deliver the work in How can contractors achieve this for their staff? question. The Next Generation: Skills for New Build Nuclear report from Cogent, the sector skills council for the nuclear In an effort to ensure that everyone who comes onto a sector, indicated that 12,000 trained construction workers nuclear site with radioactive materials present understands would be required to deliver the new build programme the importance of working safely and securely, clients and alone. other sector bodies have collaborated to introduce what is known as the ‘triple bar’. What are the specific skills requirements that new contractors will have to address in order to be successful Three training standards form the triple bar. They are: winning work on nuclear sites? Basic Common Induction – provides individuals with WHAT As with quality, the skills requirements for any given job is required for ‘compliance’ for entry to a nuclear site. will be dictated by the nature of the works. Again a sliding Basic Nuclear Industry Behaviours – provides individuals scale is in operation, with those works associated with with an awareness of HOW they need to behave and nuclear safety-critical activities having much higher skills embrace the nuclear safety culture. requirements than work on non-safety critical projects such as the demolition of non-nuclear buildings. Basic Nuclear Industry Context – provides individuals with the WHY they need to comply. For most new entrant contractors, the most important skills requirements will be those specific construction trade Each will be no more than two hours in length so all three and management skills that would be required on any will be able to be delivered in one day, minimising any down construction project. time. Details of these specific requirements will be dictated by Furthermore, a new piece of training called the ‘Triple Bar individual clients on individual projects, and contractors Nuclear New Build Site’ has been produced and will be should seek to discuss these with potential clients prior to mandatory for those working on Hinkley Point C. any tender. It will be vital that contractors can demonstrate at bid stage that their staff can meet any of these skills This new training has been developed with EDF. Free access requirements. to this course is available via e-learning at: Where contractors are working on a nuclear licensed site, http://www.nucleartrainingnetwork.com. it is also important that staff have an understanding of

36 The Skills Challenge The Skills Challenge continued

Contractors will need to attend a CITB-approved testing individuals to demonstrate their competence, with training centre to complete an assessment, which will start at that will be recognised across the UK. £17.50. The aims of the passport are to: There is a second option for training, which is via classroom • Make staff more mobile between sites delivery, for which there will be a charge. Currently, Bridgewater College are the only training provider licenced • Allow individuals to take charge of their career to deliver this course. development In addition, the Nuclear Training Network has recently • Help contractors to demonstrate their competence been launched, and will host e-learning materials for the and commitment to the industry nuclear industry, the first of which is the Triple Bar Nuclear • Identify skills gaps and signpost the training required New Build Site. Over the coming months more e-learning and where they can access that training. materials will be added. Once this training has been completed to an industry The Nuclear Skills Passport is now being rolled out across agreed standard, it can be registered on a Nuclear Skills the industry with almost 50 per cent of the National Skills Passport and accepted at other sites, reducing the amount Academy membership has now implemented the system. of duplicate training that contractors currently go through. The nuclear industry has already said that the NSP will be For staff in supervisory positions the Award of Nuclear regarded as ‘highly desirable in future tenders’ with Magnox Industry Awareness should also be considered, this course Ltd rewarding companies in their latest round of framework goes into more depth about the history, behaviours, acts contracts tenders with a positive weighting for those that of Parliament, legislation and regulatory framework of the had implemented the system. nuclear industry. This course is available as a classroom How does this relate to existing industry competency based course or as an e-learning package and is completed cards? with a two hour exam. The Skills Academy has been working with ECITB and CITB The Nuclear Passport to make sure the Nuclear Skills Passport is complementary and will work in partnership with the existing competency The Nuclear Skills Passport is a web-based technology cards. A company will be able to record employees platform that can record any qualifications that an qualifications such as CSCS on the Nuclear Skills Passport individual has that may be relevant to their work on nuclear meaning individuals will not have to carry multiple cards. sites. How do contractors get their passports for their staff? It has been designed to help companies to understand what training is required for a particular job, where they can The passport is available to companies who are members of get that training and offers a secure centralised database the National Skills Academy for Nuclear. of training records making it easier for companies and

37 The Skills Challenge The Skills Academy can provide a range of products and services to help new entrants gain a better understanding of the nuclear market and help companies make a transition from their traditional markets. Contact details and additional information are available on the Skills Academy website (www.nuclear.nsacademy.co.uk) or you can call the Skills Academy on 01900 898 120. For further background information on nuclear skills, please see Appendix B.

Guide 3 – Skills • Have you established the skills requirements – in terms of technical, managerial and nuclear industry specific skills – that your employees will be required to be able to demonstrate in order to deliver the projects that you intend to target in the nuclear sector? • If you have answered yes, do you have sufficient skilled staff to deliver this capability at the level required on any project that you intend to bid for? • If you have answered no to the above question, are you prepared and able to put in place a training programme that will ensure that your staff have these skills by the time you come to compete for this work?

38 The Skills Challenge The Security Challenge

39 The Security Challenge The Security Challenge

Security This plan is drafted by the site licence company, who is responsible for all aspects of security on their sites, and As with in other areas of this guide, the challenge faced approved by the Civil Nuclear Security (CNS ) team in ONR. by new entrant contractors in terms of security may vary Given the sensitive nature of the plans, such information is significantly based on the nature and location of the work not in the public domain. Contractors should therefore be that they are involved in. briefed on any specific security requirements as part of the Clearly there will be vastly different security concerns and contract. requirements for contractors working on some defence Access/Vetting nuclear sites than there will be for those working on projects such as car parks that are away from the nuclear Given the requirements of the security plan, it is vital that licensed site and involve no potential interaction with the site licence company is able to control access to and nuclear material or classified information. from the site. Nuclear security policy Clearly for contractors this may mean that their staff come under scrutiny to ensure that they do not represent The main piece of legislation that applies to civil nuclear a security risk. The level of vetting that may be carried out sites is the Nuclear Industries Security Regulations 2003 is related to the security category of the site, which will (NISR 2003 – www.opsi.gov.uk/si/si2003/20030403.htm). vary from site to site based on the type of nuclear or other The regulations apply to everyone who comes into contact radioactive material, or sensitive nuclear information that is with nuclear sites, regardless of whether they are a client or stored there. a supplier working for them. The regulations are enforced by the Office for Nuclear Regulation (ONR) which regulates The lowest level of check is known as a Baseline Personnel security at all UK civil nuclear licensed premises. The NISR Security Standard (BPSS). The baseline standard is not a 2003 does not apply to nuclear premises operated primarily formal security clearance, but ensures that the individual or exclusively by the Ministry of Defence or its contractors. in question is who they say they are, verifying their Defence nuclear sites come under the control of the identification. It also gives a guide as to their honesty, Ministry of Defence. The regulations cover a number of integrity and values, verifying their employment history, specific issues in relation to the security of nuclear sites. nationality and immigration status, as well as any unspent criminal record check. In all cases, verification of identity More details can be found here: http://www.hse.gov.uk/ and the individual’s entitlement to undertake the work nuclear/ocns/. in question, must be carried out before National Security Vetting (NSV). Security Plan This is the most likely form of vetting that staff or NISR 2003 demands that each site must have its own contractors working on nuclear sites will have to undergo. approved security plan. This plan describes the security While the majority of those who are submitted for this regime on the site for the protection of nuclear or other baseline check are passed, it is by no means unknown for radioactive materials and sensitive nuclear information. someone to fail, and companies should consider this prior

40 The Security Challenge to putting forward staff for assessment, particularly where Foreign nationals that person has a criminal record which does not show any Clearly given the potential security threat presented by rehabilitation or other difficulty in relation to their status. some of those coming from other nations, the prospect Contract staff must be subject to the same pre and post of having foreign-born workers vetted creates a new appointment checks as permanent staff. It is ineffective dimension in terms of managing nuclear security. to apply personnel security controls to permanent staff if A lack of residency, in itself, should not be an automatic non-permanent staff are then allowed access to premises bar to employment, either for Baseline Personnel Security and information without the same rigorous checks having Standard, or for National Security Vetting. Contractors been carried out. should be aware that the process may take longer. There For more sensitive posts there are an additional range of is a residence requirement for National Security Vetting. security controls, referred to as National Security Vetting Prospective employees are required to give a reasonable (NSV). These controls are not a substitute for the BPSS. account of time living abroad. All National Security Vetting needs to be approved by the One issue in relation to all forms of vetting is the fact Office for Nuclear Regulation, although the administrative that an individual can only be vetted if they have been checks and interviews will be carried out by the Defence put forward by a licensed company, as a result of the fact Business Services (DBS ), part of the Ministry of Defence. that they will imminently be required to work on the There are three levels of National Security Vetting: site in question. It is not possible to get your company’s staff vetted on spec, in the hope that this will make your • Counter Terrorist Check company more attractive to clients in the sector. Where • Security Check contractors are required to have staff vetted, time for this should be built into the pre-contract start phase by the • Developed Vetting. client. Once an individual has received Baseline Personnel Security These checks include checks on criminality, credit Standard and for National Security Vetting, there must worthiness, security service and employment history, while be no more than 12 months between leaving one site to Developed Vetting would include face-to-face interviews another. Individuals are not required to re-vet for each new with the subject, with a supervisor and referee also required. site, provided their level of vetting is appropriate to the However in most cases it is unlikely that staff working requirement of the new site. To prevent unnecessarily re- for companies that are new entrants to the nuclear civil vetting people contractors should try to determine whether engineering sector would be in positions that required them a person has been previously vetted in which case it may to go through any of these three processes. be possible to transfer this vetting across (so long as it was not subsequently revoked) to their new job subject to appropriate identity checks being carried out.

41 The Security Challenge The Security Challenge continued

Given the time taken to carry out vetting – which can take Guide 4 – Security 6–12 weeks or more in some cases – it is also essential that contractors ensure that they put forward sufficient staff • Have you discussed with potential clients what their to do the job for vetting, along with further staff to cover expectations will be in terms of security for those should any of their employees be unavailable for work for projects that you hope to compete for? any reason. • Is your company able to work in accordance with these requirements? • If meeting these requirements will involve your staff undergoing vetting, are you confident that those employees that are to go through the process will do so successfully? • Are you also prepared to allow compulsory stop and search, and substance abuse testing, of staff if required?

42 The Security Challenge Resources 43 Resources Supporting Bodies – National

CECA Nuclear Forum National Skills Academy for Nuclear Meeting four times a year, the CECA Nuclear Forum As noted earlier in the guide, along with its role in co- provides an opportunity for members of the Civil ordinating the nuclear sector’s skills agenda, the National Engineering Contractors Association who are interested in Skills Academy for Nuclear also acts to support suppliers as the nuclear sector to meet to discuss developing policy they develop their capability in the nuclear market. matters relating to the nuclear sector. The Forum also Membership of the Academy allows companies to attend receives regular presentations from representatives from regional steering groups, which allow contractors to the industry’s clients and stakeholder bodies. Attendance at network with other companies working in the nuclear the Forum is open to all members of the association who sector in their area, helping firms to make connections that have an active interest in civil engineering work in the may benefit them in the approach to the market. Contact nuclear sector. details and joining instructions can be found at www. nuclear.nsacademy.co.uk. For further details in relation to the CECA Nuclear Forum, please contact Marie-Claude Hemming, CECA Industry and Public Affairs Manager on 0207 340 0453 or e-mail Constructing Excellence [email protected]. Constructing Excellence’s nuclear task group has membership from across the sector, from funders and Nuclear Industry Association clients to supply chain. The purpose of the group is to de-mystify the construction challenges (and opportunities) The Nuclear Industry Association is the main trade body in the nuclear sector, and to promote all appropriate aspects dedicated to the UK’s civil nuclear industry with more than of integration and collaborative working as the best means 235 members drawn from across the sector. to deliver superior performance for all stakeholders. As a pan-sector association, the NIA offers great potential For further information, contact: Don Ward, Chief Executive, to meet with suppliers from other parts of the nuclear Constructing Excellence, on 0207 592 1100 or e-mail don. industry, while the association also acts to lobby on behalf [email protected]. of its members. The NIA runs a number of working groups and client meetings to help member companies contribute At a regional level, those organisations that offer business to the development of commercial performance and support to contractors tend to be focused around those business development in their business in the UK and parts of the country that have a considerable number of overseas. nuclear facilities, whether they be in civil nuclear or defence. For further details in relation to the NIA please contact The following pages provide an introduction to some of Stephanie McKenna ([email protected]). these bodies.

44 New Build Supporting Bodies – Regional

SC@nuclear Caithness Chamber of Commerce The Nuclear Industry Association’s Nuclear Supply Chain As the local chamber of commerce for the Dounreay site, Development Programme (SC@nuclear) was launched in this is an important business organisation in the area. Its 2009. Since its launch the NIA has lead a programme of members include many of the companies and organisations national activities and events under the banner SC@nuclear. involved in the decommissioning of Dounreay, providing The aim is to raise awareness of the opportunities that exist networking opportunities for local businesses. For further and are being created in the nuclear sector, and to help details, visit www.caithnesschamber.com. strengthen and promote the capability of the UK supply chain so that UK companies are able to play a full role in Wales future nuclear development at home and overseas. Find out more here: www.nuclearsupplychain.com. Energy Island Scotland The Anglesey Energy Island programme is a collective effort between several stakeholders within the public and Scottish Enterprise private sector working in partnership to put Anglesey at the forefront of energy research and development, production As Scotland’s main enterprise, innovation and investment and servicing, bringing with it potentially huge economic agency Scottish Enterprise provides support to companies rewards. Further details are available at: http://www. across a range of industries including the energy sector. It anglesey.gov.uk/business/energy-island/. has set up a nuclear decommissioning supply chain support project to raise awareness amongst Scottish companies of North West opportunities in the nuclear sector and directly assist those with the potential to enter the market. Energy Opportunities Supply Chain Project For further details, visit: http://www.scottish-enterprise. This is a joint project of West Cumbria Development com/your-sector/energy/energy-how-we-can-help/nuclear- Agency and Britain’s Energy Coast – West Cumbria. It helps support/ndsc.aspx. West Cumbrian companies win business from the energy sector opportunities including the nuclear industry. The Highlands and Islands Enterprise project supports companies that are keen to improve their This body was set up to help develop sustainable economic performance and to work effectively within the supply growth in the Highlands and Islands. This area includes the chain. It is opening up opportunities for new enterprises and Dounreay site. For more information, visit www.hie.co.uk. encouraging inward investment. Further details are available at: http://www.eoscp.co.uk/.

45 New Build Supporting Bodies – Regional

Britain’s Energy Coast Business Cluster East of England A private sector led group assisting member companies East of England Energy Group share knowledge, market intelligence and build links with key organisations. Members include world class, The East of England Energy Group is a trade association innovative and highly competitive companies that offer that focuses on the development of the energy industry in high value jobs in the region. For further details, visit: www. the East of England. It provides networking opportunities, westcumbriabusinesscluster.org.uk. events and services to its members who are drawn from all parts of the energy sector, including nuclear. For further Cumbria LEP details, visit http://www.eeegr.com/. The Cumbria Local Enterprise Partnership has a strong Suffolk Chamber of Commerce nuclear focus. For further details, please visit http://www. cumbrialep.co.uk/. The Suffolk Chamber of Commerce delivers business information, services and advice for companies operating in South West the county that is home to Sizewell. Given the continuing role of the Sizewell site in terms of new build, operations Somerset Chamber of Commerce and decommissioning activities over the coming years, the Chamber of Commerce is set to be an important link EDF has asked the Somerset Chamber of Commerce to for businesses in the region. The Chamber of Commerce is help manage its supply chain development for the Hinkley working with EDF to help manage supply chain registrations Point C project. The Chamber has set up a website (www. from local firms. For further details, visithttps://www. hinkleysupplychain.co.uk) to allow local firms to register suffolkchamber.co.uk. their interest in the project. For further details, visit http:// www.somerset-chamber.co.uk/.

46 New Build Appendix A – Quality

The Quality Regime As a globally agreed standard for quality management systems in a nuclear environment, G-S-R3 carries a The standards of quality that the UK nuclear industry works significant amount of weight. In the UK nuclear regulation to are derived from a number of sources, both national and is carried out by the Health & Safety Executive’s Office for international. Nuclear Regulation, through their Civil Nuclear Security team and by the Environment Agency. Below the regulators Organisations Requirements/ Standards are the individual Site Licence Companies (SLCs), whose IAEA IAEA G-S-R3 approach to quality assurance will be dictated by the site National Regulators IAEA G-S-R3 licence itself. The HSE has developed a standard set of 36 licence conditions, of which Licence Condition 17 relates to Licensees LC17 – IAEA G-S-R3 quality assurance. Under Licence Condition 17 an SLC must Contractors ISO 9001 + Specifications have adequate quality assurance arrangements, which can be, but are not normally, called in for approval by the HSE. The top level is the International Atomic Energy Agency. Its The ONR does not to mandate that the SLCs quality G-S-R3 document The Management System for Facilities management system complies with G-S-R3. But it does and Activities sets an internationally agreed standard for strongly guide them to do so, indicating that the IAEA an integrated management system covering safety, health, document provides a robust guide to best practice, whose environment, quality, security and economic factors on adoption will provide compliance with Licence Condition nuclear sites. 17. Accompanying this document are guidance notes including The SLCs should then pass the conditions they have agreed G-S-G 3.1, which provides a recommendations for the with the HSE down to their suppliers, specifying how they implementation of a management system that will meet would like to see them manage quality. The specifics of with the requirements laid down in G-S-R3. A second each site licence’s approach will vary from site to site, so document G-S-G 3,5 provides further guidance and it is impossible to provide a ‘one size fits all’ explanation of recommendations beyond those found in G-S-G 3.1. Both of the quality management process for all sites. these documents can be found in full at www-ns.iaea.org/ standards/documents/default.asp?sub=130. Typically this could be achieved by a contractor working under its own quality management system that has been This second document (G-S-G 3.5) provides a couple ISO 9001 certified, to specifications for each activity that of appendices that are particularly pertinent to the civil will have been set by the site licence company. For example engineering sector. Appendix IV provides recommendations EDF has developed its own standard for its nuclear new on the implementation of an integrated management build projects called GQAS (General Quality Assurance system for design work on nuclear projects, while Appendix Specification), which is based on ISO 9001, with additional V provides guidance on implementing an equivalent nuclear specific requirements. With no universal system for management system for construction. quality assurance across the nuclear sector, it is imperative that contractors discuss this issue with potential clients at

47 Appendix A – Quality an early stage, to discover what their supply chain quality • Details of all records to be generated during this process assurance expectations will be. (see below – Record Keeping).

Quality plans The plan will be structured in such a way that, once elements of the work have been carried out, they can be As detailed above, for some activities suppliers will be signed off, leading to the creation at the end of the project required to produce quality plans for the work that they are of a document that shows that the work has been carried to carry out. The purpose of these quality plans is firstly for out and signed off in accordance with the plan initially the supplier to plan out their quality control activities and agreed with the client. secondly to allow the SLC and regulator to be satisfied that the contractor fully understands the nature of the work that Contractors will be expected to be able to demonstrate that they are due to carry out prior to the commencement of they have experience of developing and working to their any work. Such quality plans are by no means exclusive to own quality plans to a standard equivalent to that required the nuclear sector and are more commonly known or akin by the SLC. It is possible that lower tier suppliers may not to quality Control Programmes or Inspection & Test Plans. have this capability. In these cases the main contractor Again the level of detail and work that is involved in their may bring the sub-contractor under its quality plan, with preparation will typically far outstrip those found elsewhere the main contractor taking full responsibility for the in the civil engineering sector. management and inspection of the works. No work should be carried out until this quality plan has been signed off by the SLC, and getting to this point may involve considerable discussion and modification of the quality plan among all those involved in the contract. The finalised quality plan will consider the detailed specification that the client will have provided for the supplier, and will show how the contractor intends to deliver in compliance with this specification. It will include where necessary: • Instructions as to how particular activities will be carried out • Details of any testing that will be carried out to confirm the quality of the end product • Explanation of how the contractor will make sure that these instructions have been followed • Details of all the inspections (see below – Inspections)

48 Appendix A – Quality Appendix A – Quality continued

Design Change Control Record keeping There was a perception among those who were interviewed A key part of a contractor’s requirement to deliver to its for the guide that in the wider civil engineering sector, if quality plan will be the collection and maintenance of something was found to have been constructed that was records in relation to all work carried out. out of conformity with the design specified, the contractor These records are required to prove to that, where they might often come up with a solution that produced the have not been directly inspected by either the SLC or the same output albeit to a modified design. Such a solution NII, the works have been carried out in accordance with might help to keep the project on programme, avoiding the the specification. need for the works to be pulled out and rebuilt to meet the Depending on the level of quality grading required for a original design. project, contractors may be expected to be able to produce But such an approach is often unacceptable in the nuclear records going right back to the base materials used in sector, as a non-conformance with the specification. In construction to demonstrate that they were suitable for the cases where this did occur, any design change would have job in hand. In the case of materials such as rebar, this may to be reviewed by the designer, the SLC and potentially the require copies of original rolling certificates for the steel regulator, to ensure that the change would not have an from the rolling mill. These certificates should arrive with unanticipated impact of nuclear safety. It is not unusual for the product as it arrives on site, and be held onto as part of the design team to have a design liaison engineer on the the quality plan throughout delivery, forming part site to give fast-tracking on what need to be referred back of the lifetime record for the project. to the main designers and what can be ticked off on the site by the section engineer or clerk of works. This reinforces the importance of delivering right first time, every time, in accordance with the quality plan.

49 Appendix A – Quality Suitably Qualified and Experienced Persons Inspection There is a chapter in this guide that deals with the issue of While the quality plan for any work should include full skills, and the challenge that the industry faces in ensuring details of how the work should be carried out in accordance that there are sufficient skilled operatives and staff to carry with the client specification, it goes without saying that out all of the UK’s forthcoming nuclear ambitions. it is not just taken as read that the supplier will deliver in accordance with the quality plan. While that chapter goes into detail about how to go about up-skilling your employees, this issue is also of central Instead, as indicated earlier, the quality plan will also importance when considering a contractors quality plan. provide full details of the inspection and surveillance regime that a contractor will work under as it delivers the work in Prior to the commencement of any work, a contractor will question. At one recent industry supplier day for new build be expected to demonstrate, in detail, that the team of nuclear, this surveillance was described as being ‘unlike employees that are intended to carry out the work have anything you will ever have come across’, in terms of its the full set of skills required to do so. The term used in the thoroughness and frequency. nuclear industry to describe such employees is Suitably Qualified and Experienced Persons, or SQEPs. It will not The quality plan will provide details of the inspection simply be enough to say that staff have these skills. Clients and surveys to be carried out, with the level of inspection will expect to see evidence of training records, proof that strongly linked to the relative importance of the work that each person has experience of carrying out similar work in is being carried out. This grading will also determine who the past; and accreditation for specific skills related to the it is that carries out this inspection, which could be carried activity in question. out by: The provision of demonstrably SQEP staff and the ability of • The person actually carrying out the work the contractor to quickly and readily produce evidence to support that demonstration are paramount in developing • Other staff from the supplier organisations and maintaining the relationship with the Nuclear Operator. • A third party independent auditor As well as being able to demonstrate the skills required to do the job itself, staff will also need to be able to • The site licence company demonstrate that they have the skills required to carry out • The regulator. all of the quality assurance requirements that sit with them under the quality plan. Suppliers will be expected to either have experience and/or capability of working under such a regime of inspection and surveillance.

50 Appendix A – Quality Appendix B – Skills

This Appendix provides further details in relation to skills Open University with involvement from industry and that may be of interest to contractors who are considering Higher Education, ensuring that it meets the needs of the entry into the nuclear sector, above and beyond the nuclear sector. information found in the Skills Challenge chapter. How will nuclear-specific training be delivered? Beyond those discussed in the Skills Challenge chapter, The individual site licence companies are responsible for the what other nuclear skills qualifications are there? competency of staff on site. This has traditionally meant that each site would provide full training to guarantee the Where staff hold senior, supervisory roles, it may be useful workforce is competent, regardless of what training they to work towards the Award for Nuclear Industry Awareness. have received at other sites. However the National Skills This course has been developed for people new to the Academy for Nuclear recently developed a network of Industry and provides a foundation level of understanding quality assured training providers to deliver a framework of of the nuclear industry and its specific requirements. The qualifications that have been agreed by the industry. Award for Nuclear Industry Awareness will help companies Qualifications from any of these providers will be in business and strategic planning. Contractors who recognised by site licence companies across the industry, understand the nuclear environment and embrace its making it easier for new supply chain companies to access culture will be better placed to be successful in the sector. training. The Skills Academy website (www.nuclear. The Award is available as either a classroom based course, nsacademy.co.uk/providers) has a list of quality assured or via e-learning, enabling people to study via their training providers. preferred method at times/locations to suit their busy schedules. Overall the course involves around 70 hours of The Nuclear Industry Training Framework guided learning. The National Skills Academy for Nuclear, Cogent Sector The National Skills Academy for Nuclear has also worked Skills Council and the Industry are currently developing with providers and the nuclear industry to develop a qualifications and training standards. This is an ongoing Foundation Degree in Engineering (Nuclear). This process with the Industry identifying which qualifications Foundation Degree aims to deliver the specific educational and standards need to be addressed first. Once these needs identified by nuclear employers in the disciplines of; qualifications or standards have been agreed and signed off engineering, management, personal skills and some more they are put onto the Nuclear Industry Training Framework specialised nuclear skills. (NITF). This framework has been developed by Cogent and The Certificate of Nuclear Professionalism will also be of in addition to qualifications and standards it also contains interest to people operating at a more senior level or information on job roles, also referred to as ‘Job Contexts’ in graduates that are entering the industry. The certificate is a the Nuclear Industry. higher educational programme designed to equip individuals with the necessary skills required for today’s professional working within the nuclear industry. It has been developed by the National Skills Academy for Nuclear, The

51 Appendix B – Skills Job Contexts Job contexts have been developed to identify the competences and qualifications/training necessary for employees working on nuclear sites, in order to ensure that suitable training courses are developed to meet demand for these skills. Cogent is currently in the process of preparing these job contexts for nuclear construction activities. These contexts provide an outline of the nuclear compliance requirements for different roles – how familiar with the nuclear sector an employee needs to be to do their job – along with a pointer to the relevant technical qualification that they will require based on existing construction or engineering industry competency cards and training. Further information in relation to the job contexts can be found on Cogent’s website: http://www.cogent-ssc.com/ industry/nuclear/nitfjs.php.

52 Appendix B – Skills Infrastructure Horizons

Infrastructure Horizons online About CECA CECA’s Infrastructure Horizons: Nuclear represents an The Civil Engineering Contractors Association is the overview of the nuclear sector and its relationship with its representative body for companies who work day-to-day to civil engineering supply chain at a given point in time. deliver, upgrade, and maintain the country’s infrastructure. With more than 300 members split across eight regions, Given the fast pace of change in the sector, it is essential CECA represents firms who together carry out an estimated that this guide is updated regularly to detail the latest 70-80 per cent of all civil engineering activity in the UK, in developments that occur, whether it be in terms of new the key sectors of transport, energy, communications, waste opportunities coming to the market, changes in the existing and water. client base, or new thinking in relation to any of the issues covered by the guide. www.ceca.co.uk For this reason, CECA wll be reproducing all of the CECA Infrastructure Horizons series online at www.ceca.co.uk/ About CITB infrastructurehorizons. This will allow appropriate updates The CITB is the Sector Skills Council and Industry Training and amendments to be made as and when they occur. Board for the UK’s construction industry, working with Access to the website will be free to the public. industry, for industry, to deliver a safe, professional and For further information, please contact CECA Chief fully qualified UK construction workforce. The CITB works Executive Alasdair Reisner on 0207 340 0454, or e-mail with construction companies to help them improve skills, [email protected]. increase their competitive edge, and respond to the many challenges employers face - from the low-carbon agenda, Infrastructure Horizons is a series of guides prepared by through to reducing costs on-site and recruiting the best CECA to provide contractors with a snapshot of emerging and brightest talent for their sector. markets in the UK. The series has been undertaken with the generous support of the Construction Sector Skills Council www.citb.co.uk the CITB.