Power April 2022 Intl - 18

PROJECT MANAGEMENT
How to Complete Successful
Power Projects Working with
EPC Contractors
Power companies rely heavily on engineering, procurement, and construction (EPC)
contractors to build new power facilities and keep old ones in top condition. However,
some projects go smoother than others. Here are some tips for completing a
successful project.
Aaron Larson
G
iven the multitude of changes in
the power industry, including grid
hardening, renewable energy resource
integration, and new load center
additions, many power companies are
under unprecedented pressure to improve
and expand their power systems.
Industry demands are driving capital
buildouts that many power companies
are not staffed to deliver internally. That's
why engineering, procurement, and construction
(EPC) contractors are so vital to
the industry. EPC firms do these types
of jobs every day, and they often have
multiple projects in progress at any given
time. They are the experts and have
the experience to start jobs off right and
keep them on track for on-time and onbudget
delivery.
EPC contracts are convenient for
power companies because the arrangement
places the responsibility for jobs
on a single provider. You've probably
heard of " turnkey projects, " meaning
the EPC contractor hands the owner a
proverbial " set of keys " at the end of
the job, giving them a completely tested,
fully functioning facility, ready to begin
commercial operation.
There are a lot of factors that affect
the success of EPC projects. A hiccup in
one area, such as late delivery of a critical
piece of equipment, can cause ripple
effects throughout the job. Therefore,
EPC contractors and owners must stay
on top of things to ensure projects are
completed on schedule.
Keeping All Stakeholders on the
Same Page
Good communication is vital to successful
projects. " The most important thing is
to define the communication matrix, persons,
and responsibilities when a project
starts, " Martin Dittrich, Bilfinger Tebodin's
18
business development director for Engineering
and Maintenance in Europe, told
POWER. Bilfinger is a global industrial
services provider that offers professional
project and construction management services
for the power industry and others.
Matt Kram, an EPC project manager
with Burns & McDonnell, a Kansas City,
Missouri-headquartered firm that plans,
designs, permits, constructs, and manages
projects worldwide, agreed that effective
communication is needed from
the beginning. " Everything starts on day
one of the job-and day one can mean a
lot of different things, " Kram told POWER.
For example, day one for the EPC
contractor could be when its team begins
preparing to bid for a project. Communication
is important in that phase to
ensure the work group has a " synced-up
proposal " that meets a client's expectations,
Kram said.
Another day one is when the actual
job kicks off. That's when it's important
to have all stakeholders at the table.
This includes people from engineering,
procurement, fabrication [Figure
1], construction, startup, and commissioning.
It also includes folks from the
original equipment manufacturers that
are supplying the major equipment for
the project. " You've got to start the job
off with the end in mind. What is the
product we're trying to leave our client? "
Kram asked. " It's important to have everybody's
buy-in and feedback all along
the way, but really, getting everybody engaged
day one is essential. "
Laszlo von Lazar, president of global
operations with Black & Veatch, an engineering,
procurement, consulting, and
construction company based in Overland
Park, Kansas, said it's important for communication
between the owner and EPC
contractor to be " zippered up, " that is,
effective at all levels-senior executive
www.powermag.com
1. Engineering, procurement, and construction
(EPC) contractors often offer unique
capabilities. For example, AZCO, a wholly
owned subsidiary of Burns & McDonnell, has
more than 83,000 square feet of advanced,
automated shop space and the ability to deliver
prefabricated metal components anywhere.
This has made construction sites
safer while delivering higher quality, better
cost control, and the ability to more easily
manage critical path scheduling. Courtesy:
Burns & McDonnell
level, management level, and field level.
He suggested that having well-established
connections throughout the organizations
makes it easier to talk through
problems and come up with solutions.
Learning to Love Meetings
Some people think meetings are a waste
of time, but when it comes to running
a successful EPC project, well-executed
meetings are essential. " Regular meetings
with the customer and the vendor
are a must, where smart objectives and
tasks should be articulated to make sure
all deliverables are achieved, " said Steve
Hill, strategic business development director
for Energy and Utilities, and Key
Account Management with Bilfinger UK.
Black & Veatch's von Lazar said most
POWER | April 2022
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Power April 2022 Intl

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