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Contracting and Procurement Insights

The document discusses contracting and procurement issues in the power industry. It covers different business models like EPC and OEM. It also discusses different ordering models for power plant projects. The presentation analyzes the pros and cons of various packaging philosophies and trends in the industry like the emergence of separate BOP contractors and increased competition. It provides insights into how companies evaluate factors like past experience, risks, and economics to determine their contracting strategies.

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SubburajMech
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21 views18 pages

Contracting and Procurement Insights

The document discusses contracting and procurement issues in the power industry. It covers different business models like EPC and OEM. It also discusses different ordering models for power plant projects. The presentation analyzes the pros and cons of various packaging philosophies and trends in the industry like the emergence of separate BOP contractors and increased competition. It provides insights into how companies evaluate factors like past experience, risks, and economics to determine their contracting strategies.

Uploaded by

SubburajMech
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CONTRACTING / PROCUREMENT ISSUES

PRESENTATION BY SUJIT DASH (GENERAL MANAGER


POWER, PUNJ LLOYD)

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

NEW ZEALAND WAS


RANKED 5TH IN THE 2011
HUMAN DEVELOPMENT
INDEX

4TH IN THE 2011 INDEX OF


ECONOMIC FREEDOM

Source: The Heritage Foundation

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

LOOKING THROUGH THE PRISM OF SELF THE


WORLD

LOOKING THROUGH THE PRISM OF PROJECT


MANAGEMENT & EXECUTION CONTRACTING &
PROCUREMENT

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

DEVELOPER:

100
90
O 80
U OUTSOURCING
T 70
S
O 60
U
ABC
50
R
C
PQR
40
I XYZ
N
G
30
% 20
10
0
ABC PQR XYZ
COMPANY

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

BUSINESS MODELS:

High on EPC High on EPC

Low on OEM High on OEM

Low on EPC Low on EPC

Low on OEM High on OEM

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

ORDERING MODELS:

SINGLE EPC CONTRACT (BTG + BOP)

SEPARATE BTG & BOP CONTRACTS

BTG SUPPLY & BOP + BTG ETC

BTG & BOP ON PACKAGE ROUTE

BOILER, TG, BOP ON PACKAGE ROUTE

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

EPC CONTRACTORS:

SOLUTION FOR EVERY MODEL !

OEM PREFERENCE: EQUIPMENT SUPPLY

CONTRACTING COMPANY: BOP

e-BOP

BTG ERECTOR

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

DRIVERS:

PAST EXPERIENCE

INTERNAL STRENGTH

MARKET OPPORTUNITY

ECONOMIC CONSIDERATION

RISK MITIGATION

LONG TERM GOAL


PACKAGING PHILOSOPHY

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PACKAGING PHILOSOPHY:
TURNKEY PACKAGES

TURNKEY PACKAGES WITH INTERNAL CIVIL AGENCY

SEPARATE SUPPLY PACKAGES WITH INTERNAL


ERECTION AGENCY

SEPARATE SUPPLY PACKAGES WITH DISCIPLINE-


WISE SINGLE ERECTION AGENCY

PACKAGING AT EQUIPMENT LEVEL

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

MORE THE MERRIER

LESS THE EASIER

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

BACK TO BACK

TRANSFER OF RISK BUT TO WHAT EXTENT

OWNING THE RISK BUT AT WHAT PRICE

ACCEPTANCE FOR TAKING THE RISK

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

CIVIL & STRUCTURAL

SITE ESTABLISHMENT

OVER HEADS

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

COMMERCIAL TERMS & CONDITIONS

CASH FLOW MANAGEMENT

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

TRENDS & CHALLENGES:

EMERGENCE OF BOP CONTRACTORS

DELAY IN COMMENCEMENT OF PROJECTS

STEEP COMPETITION

RESOURCE CRUNCH

DELAY IN PROJECT EXECUTION

PRESSURE ON BOTTOM LINE

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

TRENDS & CHALLENGES:

CONSOLIDATION IN BOP MARKET

JOINT VENTURES

EXTINCTION

SURVIVAL OF THE FITTEST

22-May-2012
We get it done.
THANK YOU

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