consultant service for epc contract

7/28/2019 Consultant Service for EPC contract

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Democratic Socialist Republic of Sri Lanka

Consultancy Services

To

ASSIST THE EMPLOYERS REPRESENTATIVE

In

IMPLEMENTATION OF EPC/TURNKEY CONTRACT OF

Ministry of Irrigation and Water Resources Management,

No. 500, T.B.Jayah Mawatha, Colombo 10, Sri Lanka.

October 2012


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2. Objective of the Consultancy Services

The concept of this Consultancy Services is formulated to achieve thefollowing key objectives of the execution of the Project.

Provide the necessary assistance to the Client to ensure that the Worksby the EPC Contractor are designed, constructed/erected, commissionedand completed on time, within the Contract Price and that the Works are

carried out fulfilling the Employers Requirements and conforming toTechnical Specifications to be agreed between parties from time to time.

To ensure incorporation of corrective measures to overcome theproblems faced during execution of the EPC Contract.

Continuously upgrade the technological knowledge of the Clientsengineering and management staff through on the job training.

Advice the Client in critical areas of engineering and projectmanagement with their international expertise and experience.

3. Scope of the Consultancy Services

3.1 CONSULTANTS ROLEThe role of the Consultant under this Contract is summarized below:

Establish an office/s at the Site with counterpart personnel to supervisethe construction, erection and consequently commissioning of the Project

on full time basis. Act on behalf of the Client within the delegated authority in carrying out

his duties including project management & related functions inaccordance with Clause 3.3, Conditions of Contract for EPC/ TurnkeyProjects, FIDIC First Edition (1999) in the implementation of the Project.


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Section 5Terms of Reference

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Review of the EPC Contractors submissions and report to the Client. Monitor the Project in every stage of the Project and take appropriate

corrective measures.

Provide accurate and timely feedback to the Client about the variousaspects of the Project including schedule, design, cost implications andtrouble shooting.

Inspection and testing at the manufacturers works and monitor deliveryaccording to the Employers Requirements (Ref. Clause 1.1.1.3,Conditions of Contract for EPC/ Turnkey Projects, FIDIC First Edition(1999) and Technical Specifications.

Supervision of all aspects of civil, structural, electro-mechanical & hydro-mechanical works and related works, testing during erection,commissioning and assist the Client during performance tests andprovisional acceptance.

Lead and guide the counterpart staff in the commissioning andperformance tests.

Technology transfer to the Clients technical personnel. Review of training procedures of operation and maintenance training

programs, to be carried out by the EPC Contractor.

Review and finalization Operation and Maintenance Manual submittedby the EPC Contractor.

Submission of periodic reports to the Client. Review and finalize the As-built drawings and documents. Assist the Client in the environmental management aspects of the Project Provide technical assistance during the Defects Notification Period andfinal acceptance of the Works.

3.2 DETAILED SCOPE OF THE CONSULTANCYSERVICESREQUIREDThe detailed scope of Consultancy Services required for the specific functionsis given below.

3.2.1 GENERALPROJECTMANAGEMENT RELATED FUNCTIONSThe Consultant is responsible for the following:

Establish a system acceptable to the Client for project management. Review all documents submitted by the EPC Contractor with respect to

planning, scheduling and progress during the project execution period.

Establishment of a documentary control system and administer the controlsystem.

Ensure that quality control and engineering standards are consistentlymaintained throughout the project and within cost and time constraints.

Preparation and submission of monthly and quarterly progress reportstogether with up to-date cost disbursement.


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Check and recommend the Contractors interim & final invoices and otherclaims, if any, to the Client for payment.

Organize and conduct periodic meetings to co-ordinate all activities. Organize and conduct special meetings to deal with urgent matters whenever

required.

Review the quality control, health and safety procedures/manuals for theProject.

Review of spare parts requirements and stock level of spares. Review special tools requirements Follow up of procurement and delivery of plant and equipment. Arrange factory testing/inspection visits, within Sri Lanka and abroad.

Monitor and control of Works for the purpose of certifying progresspayments.

Assist the Client in issuing the payment certificates. Maintain records on payment made by the Client to the EPC Contractor. Prepare monthly progress reports. Maintain records of contractual claims, if any by the EPC Contractor. Assist the Client in contractual matters with the EPC Contractor (guarantees,

performance bonds, insurance, claims, etc.)

Inspect and direct preventive safety and environmental control measures. Lead the regular site co-ordination meetings. Monitor job safety Resolve site engineering issues. Co-ordinate the over-all construction schedule. Review the Operation & maintenance manuals prepared by the EPC

Contractor.

3.2.2 REVIEW OFEPCCONTRACTORSDETAILDESIGNSThe Consultant shall attend to the following and report to the Client withrecommendations where necessary:

Audit, review and comment on all specifications of equipment, calculations,and investigations detail design drawings and documents submitted by the

EPC Contractor. Provide necessary guidance to formulate (i) Drawing Classification System

and (ii) Plant Identification System based on KKS system and review thesystems proposed by the EPC Contractor.

Examine and review all drawings, procedures, documents and detail designssubmitted by or requested from the EPC Contractor. These include drawingsand designs requiring approval from regulatory bodies as well. Suchdrawings and documents cover all disciplines (viz. civil, structural, electrical,mechanical, hydro-mechanical, control & instrumentation, architectural,geological) relevant to the Project.


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Review and check the detail design of the Project to ensure its compliancewith the Environmental Impact Assessment (EIA) requirements.

Review engineering and procurement schedules. Evaluate deviations to Employers Requirements and advise the Client

accordingly.

3.2.3 INSPECTION AND TESTING AT THE MANUFACTURERS WORKS AND MONITORDELIVERY

The Consultant with the Clients participation shall undertake to implement thefollowing:

Review and approval of quality assurance control plans and deliveryschedules of the EPC Contractor.

Regular review of production schedules and delivery schedules of the EPCContractor.

Review and approval of factory testing procedures and factory test resultssubmitted by the EPC Contractor.

Witnessing of factory tests of major equipments, within Sri Lanka and abroadas required, and preparation of corresponding certificates as per theEmployers Requirements.

Review of test reports on factory inspections submitted by the EPCContractor.

3.2.4 CONSTRUCTION&INSTALLATIONSUPERVISION ANDMANAGEMENTThe Consultant shall undertake the following:

Establish a system and carry out overall construction & installationsupervision and management.

Check and approve the EPC Contractors temporary works and facilities withthe Clients concurrence.

Review, evaluate and approve construction method statements and additionalsite works of the EPC Contractor, in compliance with the technical andenvironmental requirements.

Evaluate and approve the EPC Contractors quality assurance/controlprogram. Issue site instructions on behalf of the Client to the EPC Contractor. Review and approve test procedures for materials, plant and equipment to be

tested on site by the EPC Contractor and witness such tests with theparticipation of the Client.

3.2.5 COMMISSIONING,GUARANTEE ANDACCEPTANCE TESTSThe Consultant shall perform the following:

Lead and co-ordinate the site commissioning meetings.


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Assist the Client during the various commissioning stages of the Project. Review, evaluate and approve the EPC Contractors commissioning start up

and the testing procedures including that of performance tests to verify theguarantees. The test procedures shall comply with the internationallyaccepted relevant standards.

Supervise and ensure that all tests are carried out in accordance with theapproved procedures.

Supervise the final acceptance tests and test operation of the plant and certifythe final acceptance test reports prepared by the EPC Contractor.

Witness the commissioning and acceptance tests with the participation of theClient and submit a detailed commissioning report to the Client.

Prepare and submit the Taking over Certificates and other AcceptanceCertificates as defined in the contract specifications subjected to the priorapproval of the Client.

Prepare the project completion report and submit to the Client.

3.2.6 TECHNOLOGYTRANSFER AND TRAINING OFCLIENTS STAFFThe Client will assign his engineers and other key personnel as CounterpartPersonnel (see Appendix 2) to work in the Consultants team and they will workclosely with the Consultant in the Work phases of design review, construction,erection, commissioning and other related project works in order to make use of theopportunity for technology transfer.

These Counterpart Personnel will work under the supervision andmanagement of the Consultant. However, the administrative matters and thepayments of the Counterpart Personnel is the responsibility of the Client.

The Consultant shall supervise the training programs implemented by theEPC Contractor for training of O & M works of the Project.

The Consultant is encouraged to conduct seminars, lectures in addition to theon-the job training to disseminate the knowledge of Counterpart Personnel.

3.2.7

ENVIRONMENTALMANAGEMENTASPECTS

The Consultant shall be responsible the following with regard to the EnvironmentalManagement.

To ensure that the envisaged environmental mitigatory measures specified inthe Environmental Impact Assessment (EIA) study report, are implementedand complied by the EPC Contractor during the Contract Period of theProject.

To establish the environmental monitoring and reporting procedures.


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To ensure implementation of environmental mitigatory measures identified inthe EIA study report and any other measures as required by the Client andother statutory bodies during the execution of the project.

3.2.8 REPORTINGREQUIREMENTSThe Consultant shall submit the following reports and schedules each in six (06)copies within two (02) weeks from the date of completion of the event unlessotherwise stated, during the period of Consultancy assignment.

a)INCEPTIONREPORTAn inception report shall be submitted within six (06) weeks from thecommencement of the Consulting services. It shall include the proposals how theObjectives of the services are to be achieved.

b)IMPLEMENTATIONSCHEDULE OF THEPROJECTAn implementation schedule shall be prepared by the Consultant, taking as an inputbasis, the Time Programme of the EPC Contract (Annex -2). This implementationschedule shall be submitted along with the Inception Report.

It is required to highlight in particular the milestones to be met in order the Projectcan be executed smoothly.

c)ENGINEERINGREPORTSThe Consultant shall prepare design audits and or design review memoranda asrequired during the implementation phase, depending on the needs to addressspecific points related to the EPC Contractors design.

d)DESIGNREVIEWCOMMENTS

e) MONTHLYPROGRESSREPORTSA progress report shall be submitted every month by the Consultant to the Client,addressed to the Project Director, on or before 10th of the following month.

The report shall cover the following items:

Status reports on engineering, procurement, construction anderection/commissioning until taking over of the works.

Engagement of different personal of the Consultants team in the worksand Utilization of man-months.


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Description of delays and steps to be taken to overcome them.

f) QUARTERLYPROGRESSREPORTSThe Consultant shall submit the Client of the Quarterly progress reports which arerequired to be submitted to the Ministries and to the Funding Agency, EDBI.

A chronological listing of significant project events. A concise summary of the major highlights of the report. Action on items, comprising a list of significant items on the Project which

require resolution by either the Client or the Consultant

g) SHOPINSPECTIONREPORTSThe Consultant shall submit for each factory inspection/shop inspection or testwitness, a formal inspection report including test details of each inspection/testconducted, within two (02) weeks of the inspection/test.

h)SITEINSPECTIONREPORTSThe Consultant shall prepare and submit site inspection reports for key installationsas defined during the implementation phase within two (02) weeks of the inspection.

They shall also include related documents and/or comments with results orsuggested remedial actions (if deemed to be necessary).

i) DISBURSEMENTSCHEDULESThe Consultant shall monitor and review the Project cost and expenditure andprepare the periodic statements in close co-ordination with the Clients relevantdivisions.

The main activities are as follows; Regular reviewing of the status of the Project cost and comparison of

scheduled disbursements with actual progress.

Preparation and regular updating of disbursement schedules. Review total project cash flow, establish an early warning system, and

prepare projections to track unfavorable cost trends pro-activity, drawaction plans and advise the Client.

Prepare S-curve depicting cost and schedule, reports for budgeted cost forEPC works scheduled, actual cost for works completed and budget costfor works performed, cost variation, schedule variation, total projectestimate to completion.


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j) UPDATING OFCONSULTANTSASSIGNMENTSCHEDULEConsultant shall prepare and submit the updated consultancy schedule as necessarydue to the change of the status and conditions of the Project according to the

progress of the Project.

k)MECHANICAL COMPLETIONWITHSUMMARYREPORTThe Consultant shall prepare for the various items the appropriate mechanicalcompletion reports, which shall be initiated following the EPC Contractorsannouncement of the mechanical completion of the particular item. The mechanicalcompletion report shall have the corresponding completion certificate attached,which allows the EPC Contractor to proceed with the commissioning.

l) COMMISSIONINGREPORTSThe Consultant shall review and approve in consultation with the Client the relevantcommissioning reports with enclosed test results for the particular systemssubmitted by the EPC Contractor. These reports shall address all Tests onCompletion and Tests after Completion including their results. The approval ofthe commissioning reports shall be a pre-condition for issue of any Taking-overCertificate and Tests after Completion.

m)FINALPLANTINSPECTIONREPORT/MINOR OUTSTANDING WORKANDDEFECTSLISTWITHENCLOSED TESTRESULTS

The final plant inspection report of the Consultant shall address the status of theplant items at the time of Taking-over by the Client.The minor outstanding works, defects, failures, shortcomings are to be listed andcompiled. Possible remedial actions by the EPC Contractor as needed, are to be listedand noted, including the given period of time the EPC Contractor is to rectify. Thematerial handed over by the EPC Contractor to the Client will be checked and listedfor status and completeness.

n)OPERATION&MAINTENANCEMANUALSThe Consultant shall review and approve in consultation with the Client, theOperation & Maintenance procedures and manuals submitted by the EPCContractor, within four (04) weeks before the commencement of the commissioning.Furthermore the Consultant shall prepare and submit a Reference Manual for theProject providing recommendations of the Consultant with cross references torelated documents along with the approved Operation & Maintenance manual.


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o)TAKING OVER CERTIFICATEThe Taking-over certificate shall be prepared and issued by the Consultant inconsultation with the Client, following the successful completion of thecommissioning of the Project provided that Consultant is satisfied that the defects ordeficiencies have been successfully rectified.

The issue of the Taking-over Certificate shall be subjected to;

The EPC Contractor having provided the operating and maintenancemanuals, as well as all the drawings and documents handled over to theClient requested in the Contract.

No major deficiencies are found and minor deficiencies are listed in thedefects list by the Consultant.

All spare parts and special tools are delivered and handed over to theClient.

p)PLANTPERFORMANCEEVALUATIONREPORTSThe consultant shall witness the plant performance tests carried out under Test afterCompletion. They will analyze, evaluate and approve the final performance testswith the concurrence of the Client. The analyses, results and conclusions withrecommendations shall be compiled in the performance evaluation report to be

submitted to the Client.

q)PERFORMANCE CERTIFICATEThe Consultant shall prepare the Performance Certificate with the approval of theClient and submit in three (03) copies within four (04) weeks after the expiry date ofthe Defects Notification Period, to the Client who will issue the PerformanceCertificate to the Contractor.

r)FINAL CERTIFICATE OFPAYMENTA written statement shall be prepared by the Consultant, to be signed by bothparties, the Client and the EPC Contractor that all financial obligations by bothparties are fulfilled. This final payment certificate shall be prepared and issued inaccordance with the relevant clauses of the FIDIC guidelines, Conditions ofContract for EPC/Turnkey Projects, first edition 1999.

consultant service for epc contract

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