Lessons Learnt from Construction Projects

Encora Energy’s experience in delivering decentralised energy projects including grid scale batteries (BESS), ground mount PV solar and peaking plants has highlighted a range of things that a project owner can do to reduce risks and improve the delivery. Encora has performed a range of different roles in these construction projects including EPCM, Technical Advisor, Client side Project Manager so we understand the pressures that exist from all sides and he’s a little of what we have learned.

When you’re constructing an energy project there is a temptation to trust an EPC to deliver, but when things go wrong knowledge on your side and maybe an independent voice allows you to spot problems early and make sure you’re doing your part to get the project to run smoothly.

Even the most diligent and competent EPC that is not aligned to your requirements can miss risks and issues that you need to get ahead of. By keeping these things in mind you can reduce risks and make everything easier for everyone.

Encora has wide experience through many different roles with distributed energy projects that allow us to aid in successful project execution. The following are recommendations to assist in project delivery and some of the elements that we bring to the projects that we are involved with

Risk Identification

Identify constructability risks and site idiosyncrasies to make sure they are properly addressed.

• A number of requirements specific to a project can create problems through the project, such as restrictions on site access due to the location, third party

• If you don’t identify these early you set up conflict with your EPC

• This understanding feeds into clear specifications and EPC engagement.

Identify specifications early by derisking and consulting with stakeholders.

• If you don’t clarify requirements from all stakeholders early late identification can cause delays and cost changes.

• Typical is ground investigations which can be conducted after the contract award and even late into the design. This leaves a risk which must be understood and managed.

• Other sources of issues can include lease requirements, third party land easements, grid requirements, regulatory requirements. Every project is different so identifying stakeholders and being aware of risks is key.

• A review of constructability risks, stakeholder requirements, and project plans is beneficial in determining these issues early and resolving them through the tendering process.

Confirm project fundamentals

• It is essential to confirm all aspects of the project align with the intentions, such as grid applications, feasibility, and planning permissions. Otherwise, projects can face unexpected delays that could be mitigated through early action.

• A full review of project technical aspects should be conducted, and results fed into overall plans derisking through tendering and EPC management.

Ensure easements are in place.

• Projects that have multiple connected sites or distance to the connection point and require cable runs need to be clear on the requirements for easements to ensure that the project is feasible. Unclear cable runs can cause large detours at significant expense.

Project Management

Ensure suitable Project Management to deal with progress and contract management with appropriate representation of the owner.

• Project Management can be critical to project delivery. Managing this from the owners' side can be a different role from the Technical Advisor role and can be defined by model contract forms in various ways. A project manager will represent the owner in contract management, progress management, foresight and risk mitigation.

• When an EPC project manager is inexperienced and/or the owners side project management is managing from a distant problems can became apparent. This can result in poor planning, and critical steps not being properly considered, resulting in delays.

• While projects may start well deciding to engage a more active owner-side PM mid-way through a project is a difficult decision to make. We recommend that for any project, there should be a clear responsibility to actively undertake project management and contract management from the client side.

Identify specialist requirements early and get them booked

• Some specialist contractors are required, e.g commissioning of inverters. If these are not identified early enough it causes delays in the project.

• By reviewing contractor plans, these can be identified early, and the EPC can demonstrate that they have thought of those things and are clear on the specifics of the project.

EPC Competency

Vet the competency of the EPC for their ability to understand and manage the project specifics.

• If an EPC is selected principally on price and not enough attention is spent in determining their suitability for a project you can find that the EPC is not properly prepared to deal with any complications.

• This is often hard to determine from tendering, but with initial focus, it will set a tone for the EPC to follow.

Contractor capability is not always consistent.

• Contractor capability can be dependent on several factors that need to be considered when working with them. A contractor that is using a workforce that is not local to the project can have issues that may not be a problem on other projects.

Sometimes, it is hard to pick up capability at tender, and you have to actively manage the EPC/contractor.

• Tendering processes are always going to have some element of uncertainty about the ability to deliver without issue. Even with known contractors, there are factors that can affect delivery.

• In these situations, it's about being able to recognise issues and work with contractors to manage them as effectively as possible to get the best result for a project.

Design

Understanding and reviewing project opportunities from a technical/market view early on can provide additional upside.

• By reviewing the commercial and technical opportunities within the project, new solutions can be found. Fully understanding this and widening the potential of the project may allow additional value to be gained.

Construction 

Focus on the construction sequence can aid project delivery

• We have found that there is a tendency for contractors to attempt to start construction on project elements without properly considering construction sequence and overall site design particularly around civil works. This can be a well-intentioned but misguided attempt to move the project forward when resources happen to be available, but it can end up resulting in rework at additional cost and lost time.

• We look to ensure that the EPC understand the interactions between contractors, site design and construction sequence and has a clearly executed plan rather than trying to unnecessary jump sequences based on circumstance.