Tractbele Report Version 7
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TRACTEBEL Engineering Limited 1st Floor Chertsey House, 61 Chertsey Road, Woking, Surrey GU21 5BN - UNITED KINGDOM tel. + 441483550859 [email protected] www.tractebel-engineering-gdfsuez.com FINAL REPORT Our ref.: I/RA/14189/13.035/WGO Your ref.: Pro memoriam Date: 31 May 2013 RESTRICTED Employer : Ofgem Project : LINCS Offshore Wind Farm Subject : Review of the export cable installation costs to third parties is forbidden without prior written approval written prior without forbidden is parties third to ny duplication or transmission transmission or duplication ny . A . Tractebel EngineeringLimited Smart & Sustainable Infrastructure CCS TLM trading under the brand name Tractebel Engineering Limited – Incorporated in England (registration number 7117985) with registered office 5-9 Eden Street, Kingston Upon Thames, Surrey KT1 1BQ, United Kingdom. VAT No: GB This document theis property of 992 5309 89 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY .................................................................................................... 5 1.1. Cost evaluation ............................................................................................. 6 1.2. Connection point ........................................................................................... 6 1.3. Project Planning............................................................................................ 7 1.4. Cable installation and consents .................................................................... 7 2. INTRODUCTION ............................................................................................................. 8 3. APPROACH ..................................................................................................................... 8 4. CABLE ROUTE AND INSTALLATION ................................................................................. 9 4.1. Cable route and connection point ................................................................. 9 4.2. Conclusions ................................................................................................. 13 4.2.1. ‘The Wash’ site surveys ........................................................................... 15 4.2.2. Consents 19 4.2.3. Conclusions ............................................................................................ 20 4.3. Project management .................................................................................. 21 4.3.1. Contingency planning .............................................................................. 21 4.3.2. Project decision making ........................................................................... 22 to third parties is forbidden without prior written approval written prior without forbidden is parties third to 4.3.3. Managing contractors .............................................................................. 22 4.3.4. Participating contractors .......................................................................... 22 4.3.5. Conclusions ............................................................................................ 24 5. CABLE INSTALLATION WORKS ....................................................................................... 25 5.1. Introduction ................................................................................................ 25 transmission or duplication ny . A . 5.1.1. Summary of events ................................................................................. 25 5.2. 2010 Nearshore cable installation using HDD ............................................ 26 5.2.1. Conclusions ............................................................................................ 27 5.3. Chain Trenching and installation with rollers 2011 .................................... 27 Tractebel EngineeringLimited 5.3.1. Cable Float in .......................................................................................... 28 5.3.2. All-terrain Vehicle .................................................................................... 29 5.3.3. Use of Rollers ......................................................................................... 30 5.3.4. Roller spacing ......................................................................................... 30 5.3.5. Conclusions ............................................................................................ 31 This document theis property of 5.4. Chain Trenching and float-in installation 2012 .......................................... 31 5.4.1. Standby UR101 ....................................................................................... 31 5.4.2. Flume Pipe installation in 2011 & 2012 ..................................................... 32 5.4.3. Conclusions ............................................................................................ 32 5.5. Main cable installation ................................................................................ 33 5.5.1. Plough-incident ....................................................................................... 33 5.5.2. Spare Export Cable Storage ..................................................................... 33 5.5.3. Anchor trials ........................................................................................... 34 5.5.4. Conclusions ............................................................................................ 34 5.6. Jointing works and post lay burial .............................................................. 35 5.6.1. Conclusions ............................................................................................ 35 5.7. Cable supply by Contractor ......................................................................... 35 5.7.1. Delay of Supply ....................................................................................... 36 5.7.2. Storage costs spare cable ........................................................................ 37 5.7.3. Conclusions ............................................................................................ 37 6. OVERVIEW OF CLAIMS .................................................................................................. 38 6.1.1. Conclusions ............................................................................................ 38 7. PROJECT COSTS ............................................................................................................ 39 7.1. Breakdown indicative transfer value July 2011 ........................................ 39 7.2. Breakdown status November 2012 ............................................................ 39 7.3. Examples of variation orders ...................................................................... 41 to third parties is forbidden without prior written approval written prior without forbidden is parties third to 7.4. Conclusions ................................................................................................. 41 8. GENERAL CONCLUSIONS ............................................................................................... 41 8.1. Connection point ......................................................................................... 42 8.2. Project organisation ................................................................................... 42 transmission or duplication ny . A . 8.3. Installation methods and consents ............................................................ 42 8.4. Outstanding claims ..................................................................................... 43 8.5. Cost evaluation ........................................................................................... 43 Tractebel EngineeringLimited 9. RECOMMENDATIONS ..................................................................................................... 44 10. REFERENCES ................................................................................................................. 45 11. APPENDICES – ALL APPPENDICES REDACTED ................................................................. 47 This document theis property of 1. EXECUTIVE SUMMARY The scope of this review was confined to the Lincs Export Cable installation costs and involved: • An examination into the investigations undertaken as part of the pre-construction works regarding the options considered for the connection point, and an independent view on rationale for the selection of the connection of Walpole; • An outline of where export cable installation costs have increased since the indicative valuation was set in July 2011; • A rationale for each of the costs increases since the indicative was set in July 2011, and an independent view on the justification of these cost increases; and • A summary and description of outstanding claims and contract variations that have arisen outside of the basic contract price and a view on the claim levels in relation to the work and efficiency of the project management of the contract works. The analysis covers documentation provided to the consultant between 21 December and 28 January 2013. In addition there were follow up discussions facilitated by OfGem with Centrica and a telephone conversation with Natural England. The events generated further documentation to which commentary has been added in this report. During the review Tractebel UK engaged closely with the developer and there was a constant communication and data-exchange between both parties. Having taken into account all of the information and data provided,