Our capability statement for the development of Low Carbon Energy Generation and Energy from Waste projects on a global scale

1. Energy & Utilities – Low Carbon Energy Generation & Energy from Waste

2. CONTENTS
1. DAVIS L ANGDON
o ABOUT DAVIS LANGDON 4
o OUR ENERGY SECTOR 5
o OUR UK OFFICE LOCATIONS 6
o OUR GLOBAL REACH 7
2. KNOWLEDGE
o ENERGY SECTOR SERVICES 10
o OUR RANGE OF SERVICES 11
o SOLUTIONS FOR THE LOW CARBON ENERGY 12
AND ENERGY FROM WASTE MARKE TPLACE
o DETAILED SERVICE OFFERINGS 13
3. EXPERIENCE
o CLIENTS 30
o EXPERIENCE 31
4. PEOPLE
o WHO TO CALL 40
1

5. 1.1_ABOUT DAVIS LANGDON
Dav is Langdon is a global construction
consultancy, prov iding managed solutions f or
clients inv esting in inf rastructure, property and
o Our Energy Sector construction, worldwide.
o Our UK Offices It is the recipient of a number of industry awards
o Our Global Reach including being v oted Top International
Construction Consultant f or fifteen successiv e
y ears and was named Building magazine’s
Construction Consultant/Surv ey or of the Y ear
2008. The f irm was named one of the Sunday
Times ‘100 Best Companies to Work For’ in last
y ear’s league table, jumping 10 places f rom 29th
to 19th on the list and the only construction
consultancy to be included in the top 50. The f irm
has in excess of 5200 staff in some 105 offices
world wide.
4

6. The Energy Team
As an integrated team of engineering energy
prof essionals and our specialists serv ices group,
1.2_OUR ENERGY SECTOR the Energy Team, prov ides a range of serv ices
expressly for clients either funding or inv esting in
energy generation, transmission and distribution
businesses.
Our prov en track record in the successf ul deliv ery
Our energy sector groups of large (>£500M), complex, high prof ile, high risk
and innov ativ e projects is v ery relev ant to this
sector.
Leveraging Experience from The Business
Our team hav e access to a f urther staff resource of
some 1800 within the network of 19 UK Off ices,
expanding to some 2400 within the Europe and
Middle East f orum of 30 off ices. Furthermore, Dav is
Langdon & Seah International as an international
partnership is supported by a staff resource of some
5500 indiv iduals across 106 offices.
Focussing on the identif ication, quantif ication and
ev aluation of project and business risk, our
inv olv ement will improv e project certainty by
Identify ing early, all factors critical to a successful
outcome
Recommending necessary saf eguards to
mitigate risk
Monitoring the on-going management /
mitigation of risk
Reporting and solv ing problems bef ore they
become a threat
5

7. 1.3_OUR UK OFFICE LOCATIONS
Davis Langdon is strategically
placed to advise your proposed
program of Low Carbon Energy
Generation and Energy from
Waste projects across the UK
and Ireland
6

8. 1.4_OUR GLOBAL REACH
Our network of global
offices, provides
international reach for
advisory services to the
Low Carbon Energy
Generation and Energy
from Waste marketplace
7

11. 2.1_ENERGY SECTOR SERVICES
The Dav is Langdon energy sector team is a product Service Offer: Tactical
of sector specific experience and our corporate
Strategic Utilities Solutions – Adv isory serv ices
knowledge. It is this cross fertilisation of ideas and
Our offering to the energy sector ranging f rom utilities procurement to costing and
best practices from all our projects with the
managing utility div ersions
goes beyond that of traditional experience of energy prof essionals that we believ e
to be our principle diff erentiator. ESCo & MUSCo Solutions – Balancing the
project and cost management. It is commercial and communal needs of the
Service Offer: Strategic
categorised as either: stakeholders
Program / Project Management – Includes Project
Controls and Programme Gov ernance which can be Engineering Services – Standalone technical
o “Strategic”, where we bring to deploy ed as indiv idual or integrated modules. consultancy that capitalises on our experience and
knowledge of the sector
bear our corporate knowledge Cost Management – Including Cost Planning,
Benchmarking, Inf lation/Construction Economics
and experience on a continuous trends and f orecasts, Value Analy sis, Lif ecy cle
Asset Maximisation – Business case dev elopment
serv ice encompassing tariff and rev enue modelling
role. Costing, Procurement and Post Contract Cost
f or distributed heat, cooling and energy schemes.
Management serv ices
o “Tactical” where we deploy
Funders Technical Advisory / Due Diligence - Legislative Guidance – Adv isor serv ices f ocused
specialist teams of highly Helping f unders to establish the v iability of the on utility connection costs, rev iewing the charges
experienced and qualified staff inv estments and identifying opportunities to cross lev ied by statutory undertakers and compliance to
sell the macro risk their statutory obligations.
to focus on one particular area
of the project. Global Sourcing / International Procurement –
Ratings - Consultancy agreeing local authority
Identify ing where and when to procure f rom the
rates f or petrochemical installations
global marketplace whilst balancing macro risk
f actors.
Sustainability – Includes Lif e Cycle Analy sis, Low
Carbon building Analy sis, Sustainable Inv estment
Decisions, Future Proof ing
Value Planning & Risk Management – Includes
Enterprise or Project Risk Management
Project Accounting - Auditing the link between
project costs and accounts
10

12. 2.2_OUR RANGE OF SERVICES
As a global construction consultancy we f ocus on
deliv ery of the best outcomes f or Clients inv esting in
construction and property .
Our integrated approach to the Energy Sector
include the f ollowing serv ices;
11

13. 2.3_SOLUTIONS FOR THE LOW CARBON ENERGY & EfW MARKETPLACE
SP V Bid
We hav e dev eloped the following solution off erings Support
which are the most relev ant to the Energy f rom (PFI / PP P) Development
ES Co
Management &
Waste and Waste marketplaces, lev eraging our Brokerage Support
wide breadth of skills sets f rom across the
business.
Landfill Mining
These solutions are designed around our clients > E fW >> Owners
P roperty Representative
aspirations and requirements, namely ; Development
En ergy
Mixed Use Grid
D evelo per Dev elopment Connection
Energy
Solutions P rocurement
Our
Funde rs Solutions
Waste
Project
Minimisat ion
“Unlocking”
Suppl y Strategy
Ch ain
Publ ic Was te Lenders TA
Se ctor Infrastructure
P roc urement (PFI/PPP)
C ommercial Energy TA /
& Publi c
EPC
Due
De ve lop ers Support
Techn olog y
Diligence
C ommercial isation
12

14. 2.4_ESTABLISHING THE BRIEF
DLivering Success The DLivering Success Model • Cost inf ormation, external publications
and client f ocused research including
DLiv ering Success was dev eloped by Davis
economic and market brief ings;
Langdon in 2005 in the wake of a number of high
prof ile construction project failures. To reinf orce its • Market brief ings f or sectors and ov erseas
position as a world class f irm of Construction markets
Consultants, Dav is Langdon dev eloped a serv ice to
• Industry experts in Building Env elope Solutions,
rev iew all major projects in which we were, or
Construction Economics and Market Conditions
hoped to be, inv olv ed to maximise the likelihood of
enable y ou to prov ide an unriv alled lev el of industry
a successf ul outcome both f or y ou and Davis
insight f or clients
Langdon. The DLiv ering Success process is
included at the back of this document.
Key benef its resulting f rom our DLiv ering Success
serv ice:
Stakeholder Engagement
•Puts projects on the right footing f rom the outset
Our Management Consultancy and Value, Planning
•Enhances understanding of the project imperatives & Risk teams pref er the term “Stakeholder
by the whole team Engagement” to “Stakeholder Management”
because managing stakeholders is a purely
•Imparts clarity, realism, commitment and
mechanistic mindset and is unlikely to work.
collaboration throughout the project team
Engaging them through-out the lif etime of a
•Identif ies focused, project specif ic activ ities to build programme enhances the collaborativ e ethos that
on strengths and treat weaknesses Dav is Langdon pursues in its programmes.
•Prov ides a means for the project team to resolv e Dav is Langdon has adopted the six stage
Market Review
any issues that are critical to success stakeholder engagement process identif ied by
Dav is Langdon’s inv estment in Research and Market Managin g Successf ul Programmes (OGC). Identify -
•Embeds the principles of good Project Gov ernance
Intelligence is unique in our sector. Our Energy Sector Analy se- Def ine- Plan- Engage- Measure.
We hav e dev eloped and hav e ref ined a v ery team in conjunction with our Prof essional
Stakeholder mapping- identifying, analy sing, and
successful f ormat for conducting a short, intensiv e Dev elopment team collaborate to prov ide:
v isualising the stakeholders- is the first step of the
workshop that addresses three primary questions;
•Cost research and market intelligence with up-to-date stakeholder engagement strategy . We hav e
Why, What and How? to maximise the likelihood of
market knowledge taken f rom a wide range of sources dev eloped tools and techniques to help you engage
a successf ul outcome for y ou.
– keeping y ou ahead of the market y our stakeholders in y our project/ programme.
13

15. 2.5_FEASIBILITY
Operational Costs – Asset Maximisation
Capital Cost Forecast - Cost Management
By linking in with our clients we will be able to adv ise
Prov ides clients assurance of their financial risk, Benchmarking
on the most effectiv e modelling of operational costs by
ensuring effective cost planning and budget control, Benchmarking is the comparison of a proposed the utilisation of our Engineering Serv ices team.
best v alue for money and ultimately, sustainable scheme with other schemes of similar type and class,
prof itability. In order to maximise the opportunities that may exist
looking at cost and value, and the driv ers of both.
within certain dev elopment projects, Dav is Langdon
For any range of projects to be f inancially
can prov ide a business case dev elopment serv ice
successful, costs (and risks and opportunities) must
Cost Planning encompassing tariff and rev enue modeling f or
be clearly and concisely understood by the whole
distributed heat, cooling and energy schemes. The
Team – including the stakeholders of the project.
During the course of sketch design, the cost model aim of the rev iew is to establish the lev el of potential
We believ e that it is only by the production of
needs to be dev eloped into a detailed Cost Plan, return on asset that f unders can achiev e by managing,
detailed cost estimates at the earliest stage of the
itemising the approximate quantities and rates of all owning and operating assets.
project, which are then regularly updated, that the elements of the scheme.
design team can be expected to design within a
budget and produce the best possible building at
the minimum cost and maximising design
efficiencies.
Cost Modelling and Key Cost Drivers
At the inception stage of the project the role of cost
modelling is twof old. It needs to be a ref erence
point f or realism, looking at the key cost and v alue
driv ers of the scheme: site abnormals; plan
efficiency, shape, height and orientation; structural
f orm and system; specif ication choices;
env ironmental control etc – all considered
collectiv ely. Structures, env elopes and
env ironmental control systems work together, and
the identif ication of the best option will depend upon
an analy sis of all alternativ es, and the way that
each part of the desired specif ication impacts upon
the others.
14

16. 2.5_FEASIBILITY
Life Cycle Costs Financial Modelling The scenarios we model usually look at contingency
management and establishing that there is suff icient
Whole lif e costing (WLC) and life cycle costing (LCC) The total system cost is a dimension that is key to
the success of any inv estment strategy in the allowance f or this item along with material costs.
are structured approaches to analysing costs and
spend prof iles of assets, components, sy stems and/or energy sector. The illustration below details how the
serv ices ov er an agreed period of time. WLC supply & demand can be modelled to prov ide
addresses the total costs and economics of ownership greater f idelity on the earning potential of any new
f rom inception to disposal, including LCC, whereas energy plant. By understanding the wider picture,
LCC addresses solely the operational phase. The we can prov ide greater context to the numbers
primary objectiv e of these methods of analy sis is to underpinning the inv estment.
inf orm the user of options that can assist in making
inf ormed choices which will ensure the deliv ery of a
sustainable and cost effectiv e lif e strategy for a
project.
WLC, in particular the lif e cycle element, is of major
signif icance as it inf orms the robustness of the
phy sical elements of the project and the f unding prof ile
f or f uture capital replacements. In cost benef it terms,
this does not signify that the cheapest nor most
expensiv e products or serv ices are necessarily the
optimum choice. Analy sis through Dav is Langdon’s
cost modelling approach will determine the best value
option.
Fai ure a
l nd
Consequ entia loss
l
total cost of owner ship
Maintenan e c ost
c
Cost We are able to factor in materials price inf lation,
currency exchange rates and other macro economic
O PTIMU M
dimensions, ov er changing time periods. We can
Capi al cos t
t
model the S-Curv e of cashf low and bias it
O perating c ost
accordingly to the f ront end f or LIP’s in order to
assess the potential v olatility in price of key items.
15

17. 2.5_FEASIBILITY
We f ocus on planning at an early stage f or tax Business Case Production
Tax, Capital Allowances and Enhanced Capital
claims f or:
Allowances Planning Our Business Improv ement team f ocuses on those
• Capital and Enhanced Capital Allowances serv ices that hav e been ref erred to in the requirement
Our objectiv e is to identify, analy se and adv ise on
taxation liability and technical risks surrounding • VAT areas of ‘Strategy and management consultancy’ and
construction projects, or the acquisition of existing ‘Business/corporate dev elopment’. We aim to improv e
• International Tax Depreciation Allowances our client’s perf ormance through better strategy ,
assets. In this way, we are able to assist clients in
reducing their tax on prof its. With Tax planning, we change, process and organisational dev elopment.
Our work ranges f rom assisting clients in dev eloping
can assist in the decision making process of
strategies, usually with particular emphasis on the part
balancing risk and reward.
Cashflow Forecasting their built asset strategy aligns with the corporate
Our experience enables us to agree claims at an strategy.
optimum lev el. We do not, unless instructed To the majority of businesses in a competitiv e
marketplace, “cashf low is king” and can materially Our consultants are trained and experienced in issue
otherwise, take the easy option of submitting low
claims that will be readily accepted by the HMRC. affect the return on inv estment of business identif ication, on data collection and analy sis, on
Howev er, we are alway s conscious that capital v entures. working collaborativ ely with the client on problem
allowances are only one tax issue, and we would solv ing and in the skills of presentation, report-writing
Dav is Langdon hav e the tools and resources to and implementation planning.
nev er compromise a client’s ongoing relationship
f orecast cashf low of asset inv estment, utilising
with the tax authorities. The Business Case should:
different cashf low models whether either standard
or bespoke to particular clients. •clarify the Client's needs and the context of those
By prov iding eff ectiv e cashf low f orecasting into the needs in business terms;
Financial Model, the v iability of a scheme can be •prov ide a vehicle f or agreement and understanding of
determined, prov iding an understanding of the those needs within the business and by all
capital expenditure liability a client take on through stakeholders;
the inv estment. Ca sh F o
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7 8 w e k - P r j c t d Mo n t y
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hl
7 8 w e k - P r j c t d C u mu a t v
e l i e
•prov ide an early identif ication of the v iability of a
£4 5 00 0 00
, ,
£4 0 00 0 00
, , project in terms of risk and opportunity; and
£3 5 00 0 00
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•prov ide a basis against which to assess the v iability
Cu u ati ve V u e
a e
Mo n l y V l u
al
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of the various options that will be generated during the
th
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£1 5 00 0 00
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ay- Ju
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The advantages of early tax planning
16

18. 2.6_RISK MITIGATION & VALUE MAXIMISATION
Value, Planning and Risk Management Risk Management
The Value Plannin g and Risk Team prov ide a Our approach to Risk Management improv es
Fine
unique combination of business and project program or project teams’ conf idence that outcomes Tune Validate
Need
perf ormance improv ement adv ice, geared towards will meet or exceed expectations.
prov iding certainty of outcome f or our Clients. Our
We prov ide quantitativ e and qualitativ e Risk Optimise
Optimise
suite of serv ices help to add v alue and reduce risk Costs
Costs
Management as well as a Schedule Risk Analy sis Define
by : def ining and articulating objectiv es; setting Project
Project
sy stem
direction; improv ing deliv erability and eff iciency ; Select
Options
monitoring progress; and f ostering collaboration. Our main emphasis is to put in place the necessary
activ ities to manage risk, and ensure that they are
The Team can help y ou:
effectively implemented.
Value Management
• create the conditions for success on y our
Risk Ma na gem en t
programme through our unique DLiv ering Revi ew
Review Iden tifi catition
Identifica on The main purpose of Value Management is to
Success serv ice • Proje tUn e rrs t ndi g
Pro j c Und s ta d n n
e d e a i g
n maximise the benef its of undertaking a project,
• Re v s e Ri k Re g te r
vi i R Re i is t
se is g s e
s r • Ris k Tol ra n e a nd
Ri sk T l e ra ce a d
o n c n
• Re a s e s Li e i li ood
s s s Likeh o
se ss k l h d
o
a n d m p a c o f Rsksk
nd I m p c t tof Ri s
I i s
Appe tit
Ap p ti e
• Dra ft F n i o n An ly s
e te
Fu c t ti An a si s i
u nc n a l s
o y whilst optimising the resources inv ested.
• analy se and manage y our programme/project • Ris k Re portUpd e s
Ri sk Rp o r Up a t te
e t d as • Initia Ri kk R gi te
In i i a l Ris Re i s r r
tl s e s te
g
risks and opportunities in order to minimise Benef its are articulated and maximised using
• Es ta b sh Ri k k Owne r
b lis Ris Own rs s
l h s
i e • Lik e h o
L i e liho
k l o od
i d
negativ e consequences and maximise • Ag re M a a g m e t
e n e n
Ac ti n s a In di idu l
tion a n n i v u l a
o s nd I v i a
d d d
• Im p ct t
•Qua l ta tiv Qu a ti a a ti
pa
•Qu a lita ve / / Qu ntitve e
i i et a t i v
n t
ac
Function Analy sis techniques, and inv estments are
Owne
Own e rs • Prox m ity
Pro xi i y
mi t
opportunities • Se t Ri kk Re v e w
s Rv i i w
Fre q e nc
qu n cyy
u
e e • Va lid te d Ri kk R gi te
l i a te Ris Re i s r r
d d s e s te
g
• Ris k Stud Re po
Ri sk St d y Re o rt
u y p rt ty pically optimised through cost and time analy sis.
Ma nagement
Mana gem en t Anal ysis
Ana lysis
• Make rational and explicit decisions against Value management techniques underpin our Value
objectiv e criteria through a robust Value Improv ing Practices such as Value Engineering,
Management and Value Improv ement process Planning, Programming and Project Controls Process Simplif ication and Waste minimisation
• monitor and analyse perf ormance against the During the lif e of a project a disciplined planning
programme schedule by using Planning, approach is essential to control its direction,
Programme and Project Control tools and outcome and risks.
techniques such as Earned v alue Analysis
It allows the management team to be in control of
each step leading towards conclusion of the project;
to understand and communicate progress and
control changes required at any giv en time in the
process; and prov ide an early warning system
when deliv ery dev iates f rom the plan and a
structured record of ev ents
17

19. 2.7_CONCEPT
Cost & Value Engineering Design Management
Applied at the Design Dev elopment Stage to Improv es and optimises the design process through
maximise cost eff ectiv eness of design solutions. analy sing and planning the design stages and
Facilitated brain storm of new ideas to perf orm approv al procedures and through def ining the project
identif ied functions. Ideas are ev aluated and the deliv erables when initiating the project.
pref erred ones are dev eloped into proposals to
This serv ice is created to steer all consultants and
f urther inv estigate v iability. Ideas are presented to
disciplines to work in sy nchrony, av oiding abortiv e or
decision makers who determine the number to be
repetitiv e work. It is about managing the consultants
implemented.
deliv ering a scheme, ensuring their process aligns
with the client’s processes and identif ies the common
objectiv es for the v arious stakeholders.
Value Engineering
In Dav is Langdon, a large proportion of the serv ice is
Applied at the Detailed Design Stage to align cost
based on the accurate coordination of ev ents: and
estimate with budget. Similar process to Cost
hence is combined with our planning and
Engineering but it is undertaken later in the project
programming expertise. When using traditional
lif ecycle hence the ev aluation and implementation
planning techniques, the design process is sculpted
criteria are more stringent.
into the broader v ision of a project. Through design
The engineer ing team also undertake in depth change management, we prov ide immediate
rev iews of engineering serv ices tender designs and ev aluation of any v ariation to the scope or programme.
assess the completeness and quality of mechanical
and electrical serv ices proposals
18

20. 2.8_ENVIRONMENTAL PERMITTING & LAND
Contaminated Land Strategy
We hav e dev eloped a Remediation Cost and Risk
Management (RCRM) off er which integrates issues
of cost, land remediation tax relief , liability
identif ication (e.g. regulatory risk) and management
risk into a single commercially f ocussed report with
clear adv ice on the actions and recommendations.
These reports are lev el I, II or III depending on the
complexity of the site and the amount of inf ormation
av ailable.
We adv ise on the cost and procurement strategy f or
specialist contractors and prov ide contract
administration during the remediation works
themselv es to maintain the programme on track,
resolv e disputes and deal with claims. We can work
in a number of way s f rom discrete ad-hoc serv ices,
such as prov ision of bespoke cost plans, through to
a f ully comprehensiv e ‘one stop' serv ice cost and
project management of the whole remediation, if
required. This RCRM reports can be usef ul at pre
acquisition, post acquisition or dev elopment
stages.
19

21. 2.9_PROJECT ‘UNLOCKING’
Grant Funding
PP A Procurement & Brokerage Funding Brokerage
For projects in the energy sector there are a variety
By utilising our network within the energy purchase Dav is Langdon has exceptional experience in
of grants and f unding streams av ailable that could
marketplace, our existing property and high energy adv ising banks, inv estors and insurers alike in
be harnessed to improv e the financial v iability of the
users clients f rom other sectors, Davis Langdon can respect of identify ing and managing construction
project, and reduce the amount of financing that
connect energy dev elopers and end users to secure and other dev elopment risks.
clients need to secure f rom other sources.
PPA’s on schemes. This often secures project This access to funding streams allows us to engage
f inance and inv estment from third parties, and break There are two key reasons f or the av ailability f or
in brokerage f or clients planning inv estment within
down a project dev elopment barrier. grants and f unding:
energy assets. Theref ore by engaging with f unders
and inv estors, we can open the f unding streams for 1) The Gov ernment are keen to promote and
f urther inv estigation into project v entures. This encourage the generation of power by sustainable
includes: means to work towards their carbon reduction
commitments.
• Priv ate Equity
• Debt Funding 2) Giv en that projects can be built in depressed
• Grant Funding locations, these areas may be subject to the
requirement f or regeneration. It is likely that grants
and f unding streams could be secured f rom regional
dev elopment agencies and the like.
We are able to assist in maximising grants and
f unding for projects. Our serv ice includes
researching and identifying the most relev ant
sources which f it with the project programme and
outputs, co-ordinating the applications, negotiating
with the f unders and partners and importantly,
managing the interaction of tax and grants to
maximise av ailability of f unds. We prov ide up to
date insightf ul knowledge and adv ice on new
initiativ es and prov iders as they emerge.
20

22. 2.10_BUYING BETTER
Purchase & Supply Chain Engineering Program Management Project Management
This is a diff erentiated Whole Lif e approach to buy ing Our Program Manag ement team work Our Project Management team prov ide an
and deliv ery; we combine our Strategic Procurement collaborativ ely with clients in the conception, independent prof essional serv ice to plan, lead,
practices and our Supply Chain Management management, control and deliv ery of major complex organise and control the management of projects and
expertise. We achiev e visibility of the supply chain at programs. programs, f rom inception to reality . Recognised as
the earliest opportunity and undertake a rev iew one of the world’s leading prov iders of management
The key outputs of our approach are the set of
against our Purchase and Supplier Engineering and consultancy serv ices, we employ highly skilled
policies, strategies and processes that help to
Framework to ensure f itness f or project managers f rom a div erse mix of prof essional
identify all necessary project requirements and
purpose/capability/capacity appetite. We implement an disciplines.
gov ern their implementation.
integrated lateral procurement approach by
With experience across a wide range of sectors, we
dev eloping a common component strategy , clustering We prov ide the necessary leadership to run large
hav e the in-house skills and market expertise to
modelling and improv e partnering in the Supply Chain, scale programs and set up the correct culture to
recognise potential and def ine objectiv es f rom the
(Local/ National/ Global) which harnesses and help ensure successf ul implementation.
outset, whilst also ensuring the deliv ery of v alue and
exploits Clients’ purchasing power. In addition we
Our approach to Program Management is to ‘think appropriate management of risk throughout the project
closely monitor all Tier 1 and Tier 2 suppliers and
big’ through the application of our program, project cy cle.
those of deliv ery stakeholders to ensure maximum
management, cost management and specialist
v alue and response to the Clients Tender Our people are experienced and highly motiv ated
serv ices. We continually ref ine our policies,
opportunities. We hav e successf ully used this prof essional project managers with a commitment to
strategies and processes through our rigorous
“Common Components strategy ” on London 2012 and understanding the business objectiv es of our clients,
Lessons Learnt process.
in doing so hav e sav ed up to 25% f rom the original and aligning projects towards the deliv ery of optimum
package costs. This integrated approach helps ensure consistency business v alue.
and f low of inf ormation between the Program,
We see that our role is to lighten the load for our
Project and Contract lev els, which is constantly
clients through the application of systems and
ref ined.
procedures which combine f lexibility to respond to
specif ic challenges with rigorous control of cost, time,
quality and f unctional perf ormance.
We believ e that the best way to achiev e these
ambitions is to listen to our customers and inv olv e the
deliv ery team in dev ising project.
21

23. 2.10_BUYING BETTER
Contract Advice – Legal Support Grid Connection Procurement – Utilities
Infrastructure
Our Legal Support Group is recognised f or the high
lev el of specialist experience it prov ides to the legal With the de-regulation of the utilities marketplace, we
processes associated with ev ery stage of the hav e championed the dev elopment of competition in
construction cycle and ev ery ty pe of construction this sector. With sev eral members of the Team being
project. members of Gov ernment regulatory steering
committees, we are uniquely placed to prov ide clients
We prov ide expert adv ice – whether prior to
with the latest market opportunities.
commencement, at commencement, during or af ter
completion of projects – which will help av oid The Team can prov ide f ully detailed procurement
disputes or, if disputes are registered, leads to their ‘optioneering’ studies f or new utility serv ices, tailored
effective resolution. specif ically to dev elopments. The study explains the
adv antages and disadv antages of serv ices installed
Legal Support can assist in the preparation of
and owned by statutory undertakers, serv ices installed
contract documents and other matters where
by third parties f or adoption by host statutory
specialist construction knowledge is required as
undertakers, inset and priv ate networks coupled with
well as contractual awareness and appreciation of
the reduced capital or ongoing rev enue opportunities.
commercial pressures.
The Team hav e f acilitated benef its f or clients by
procuring new incoming serv ices utilising these
alternativ e methods. The Team also improv e deliv ery
certainty by implementing contractual saf eguards with
the alternativ e contractors that statutory undertakers
are unable to enter into.
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24. 2.11_CONSTRUCTION
Project Controls
Our Project Control goal is to keep the Project on- •Identify ing exceptions and v ariances to planned It helps us to manage by ▪ prov iding v ariance
track, on-time and within budget by comparing perf ormance analy sis and correctiv e action reporting ▪
actual perf ormance with planned perf ormance and prov iding data that enables a clear
•Facilitating appropriate management interv ention to
identifying corrective action to generate the desired measurement of project status ▪ supporting the
maintain planned perf ormance, reduce and/or mitigate
outcome.
perf ormance degradation. effective management of resources and ▪
Our Project Controller will prov ide clear and prov iding a basis f or estimating outturn (f inal)
detailed inf ormation to the client and Management Project Management and the client will require clear
cost, and when the project will be complete.
on status and progress by establishing, with the and detailed status and progress information, the
team, the deliv ery schedule and subsequently Project Controller will deliv er timely and accurate An effectiv e EVM system may not wholly
prov iding inf ormation on status and progress. perf ormance and update inf ormation against planned replace ‘traditional’ measurement methods,
perf ormance targets. but should be used as one of a number of
The Project Controller will:
perf ormance indicators upon which project
•Establish the Work Breakdown Structure and managers base their decisions.
scope
Earned Value Management/Analysis
•Def ine the stages, phases, milestones,
perf ormance indicators and periodic rev iew points Our EVM sy stem is based upon a structured approach
to planning, cost collection and perf ormance
•Determine the resources, budgets and costs
baselines management that can be applied to projects of vary ing
size, scope and duration and will objectiv ely and
•Agree the periodicity and f requency of the reporting
cy cle accurately identify dev iations f rom the plan.
•Establish the content and construction of the The key phrase is ‘structured approach’. An effectiv e
v arious reports. sy stem does require ▪ a clear understanding of the
The f ollowing monitoring and control requirements contract scope of work ▪ dev elopment of a ‘baseline’
will be prov ided: against which cost and schedule perf ormance can be
measured ▪ realistic progress and perf ormance
•Periodic cost perf ormance and schedule
perf ormance indices to ref lect the true project measurement and ▪ disciplined and timely
position incorporation of approv ed changes to the ‘baseline’.
•Ensuring that costs are captured and aligned to Our approach aligns with industry best practice
schedule activ ities guidelines including the APMs ‘ Earned Value
•Managin g the alignment of time and cost in the Management AP M Guidelines’, and draws upon
plan experience gained across a variety of sectors and
•Ensuring that approv ed change is captured in the stages of a project.
schedule and costs
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25. 2.11_CONSTRUCTION
CDM Co-ordinator
Cost Management
Cashflow and Cost Management The CDM Co-ordinator role prov ides the client with
Dav is Langdon’s cost management serv ices
Establishing the f ramework, and then administering adv ice in respect of construction health and saf ety
prov ides clients assurance of their f inancial risk,
the f inance prov isions of the Contract(s) to control the risk management matters. The Co-ordinator assists
ensuring effective cost planning and budget control,
Client’s cash f low and the cost effects of change, and adv ises the client on the appointment of
best v alue for money and ultimately, sustainable
whilst securing perf ormance f rom the Contractor(s). competent designers and contractors and the
prof itability f or inv estments.
adequacy of management arrangements; ensures
proper co-ordination of health and saf ety aspects of
the design process; facilitates good communication
Cost Forecasting & Reporting
between project team members and prepares the
Establish a ‘traff ic light’ sy stem of cost forecasting. Risk & Value Engineering health and saf ety file.
By liaising closely with the Design Teams on a See 2.6_Risk Mitigation & Value Maximisation The Co-ordinator wi ll make a signif icant contribution
regular basis we will be in a position to forecast, in
to reducing risk to workers during construction, and
terms of cost, potential design changes and options.
to contractors and end users who work on or in the
By identify ing (Red f or imminent, etc) when
dev elopment af ter construction.
decisions need to be made, in order to minimise /
remov e effect on programme, the Client can make Project Management The Co-ordinator wi ll f acilitate CDM workshops to
changes in a timely fashion. See 2.10_Buy ing Better highlight hazards and risks and assist the
construction team to prov ide solutions as to how
they may be managed.
Variation & Change Management
Implement pro-activ e change management
procedures. Effective change management is the
duty of the outline project team, in order to furnish
the client with all the f acts, to enable business
decisions to be made. A robust change order
process needs to be established f rom Scheme
Design onwards, where all changes are assessed
f or cost and programme implications, rev iewed and
approv ed by clients representativ e, prior to
incorporation within the design.
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26. 2.12_COMMISSIONING & HANDOVER
Key f eatures:
Financial Closure – Cost Management Where an asset is sold Dav is Langdon will be able to
assist by giv ing estimates of allowances inherent on a •Undertaken at the conclusion of signif icant
Through out the construction project numerous
sale, whether it is by means of transferring the an milestones – ty pically post construction stage
challenges will hav e been f aced in the scheme, but
asset or the sale of assets within a company .
all v ariations, claims and disputes will require •Collection of qualitativ e and quantitativ e data
closure to ensure a smooth transition between the
•Analy sis of original targets and the teams
construction and operation phases.
Lessons Learnt Workshops perf ormance to them
By the use of proactiv e Cost Management
A tailored independent study to retrospectiv ely •Ref lection and collaborativ e problem solv ing
throughout the construction phases, the financial
analy se project perf ormance and suggest undertaken in workshops f acilitated by experienced
closure procedure should be more efficient.
improv ements f or incorporation into other projects, as staff
Howev er at the closure of projects, numerous
part of a programme of work or a Corporate portf olio.
stakeholders and contractor’s rev iew their internal •Compilation of an Action Plan to implement change
and external costs to understand areas of
div ergence and potential claims. The resolution of
these claims need to be carried out as quickly as Ca pture Learning
possible. Our Cost Managers will instil an Analyse Resul ts Capture Learning
(through questionnaires)
(through workshop)
importance on f inancial closure, to ensure the client Qualitative: • Draw trends
• Targeted e xercises to
• W hat wo rked wel l? • Design workshop
has limited cost exposure and liability f or v ariation discuss key l esson s
• Wh at did n’t wo rk well ? sessions • Devel op an Action P lan
claims. • W hat wa s no t i nclud ed?
• Wha t shou ld b e avoid ed?
Quantitative:
• Cost, Time, Qual ity
Tax, Capital Allowances and Enhanced Capital Rep ort Re sults
• Opi nio ns o n sta tements
Allowances Claims • Questionnaires,
interviews
(through interviews)
Once the project is on site there will be regular • Discu ss questio nnai re
• Workshop
sessions
updates on the level of allowances and we can also r esp onses
• Ga ther more i nformati on • Next Steps
work with the design team to make sure the
solutions they prov ide are dealt with in a tax
Review: Embed Actions:
efficient manner. • Ensure • Processes
eff ect iveness of
When the building is constructed it is important to Processes, Systems
• Systems
consider any contributions to f itting out works and & Approaches • Approaches
also with new rules f or leases of ov er 5 y ears, how
that may impact on the lev el of allowances.
The Lessons Learnt Process we follow
25

27. 2.13_ESCO BROKERAGE
We understand the technicalities of the v arious
renewab le sources both in terms of technical and
operational issues. Similarly, we hav e an appreciation of
the economic balance required to create an ESCO that
appeals to the end user, client, dev eloper and f under
alike.
We hav e prov en this time and time again on some of the
largest projects in the UK including, Kings Cross and
London 2012 to name a f ew.
Our objectiv es in deliv ering this serv ice are focused on
the three parties that usually make up an ESCO:
• Funders: Create an appealing inv estment that
affords a good ROI based on sound financial
f undamentals and mitigated dev elopment risk.
• Dev elopers: Minimise the risk of becoming, in
effect, an energy supplier and maximise the
rev enue potential whilst mitigating the operational
risk.
• Energy Companies: Broker a balanced f inancial
model that satisfies all stakeholders key issues
whilst prov iding an amicable risk sharing strategy
ov er the lif ecy cle of the asset.
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28. 2.14_FUNDER DUE DILIGENCE
Energy Technical Advisory
Initial Assessment
Monthly Reporting
We specialise in the deliv ery of detailed
Once engaged into a monthly monitoring role, our
independent adv ice by experts on behalf of funders,
sy stems and procedures ensure that diligence is
inv estors, insurers and insolv ency practitioners into
maintained and consistent. The f unders can be
cost, timing, perf ormance and other risks inv olv ed assured that the cost and time parameters are
in the construction and operation of buildings and being tracked and that the position of the
other assets. dev elopment is up to date.
Furthermore, we capitalise on the technical strength At any one time, our cash f low tracking tool can
of our engineering serv ices team combined with our identify:
team’s appreciation of f inancial institute concerns to
produce an initial Technical Adv isors report for a • what the cost and time to complete is,
wide range of energy generation projects – both
• the v alue of any outstanding v ariations,
renewab les and traditional.
• the probability of any other v ariations arising,
Where we operate in an international context, we
often offer additional f orms of analy sis such as • the impact of macro economic conditions,
global sourcing strategies, contingency v olatility
• the env elope within which the deal is operating
modelling and currency stress testing.
Furthermore our monthly reporting ensures clarity
ov er:
• the progress of critical technical aspects
• the progress of relev ant permits and
permissions
• the coordination of communication across all
share & stake holders
• the key macro risks that could adv ersely
impact energisation, generating capacity and /
or rev enue generation
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31. 3.1_CLIENTS & EXPERIENCE
Please f ind on the f ollowing pages a range of our
extensiv e people’s experience in the Low Carbon
Energy and Energy from Waste sector.
Our position as a top construction
consultancy is demonstrated through
our continued success in receiving
industry awards and through being
trusted by some of the biggest
clients to be their advisor.
30

32. Low Carbon Energy Generation & Energy from Waste
DRUMSH ANGIE ENERGY FROM W AS TE BIO MASS CHP G ASIFICATION POWER PLAN T, ENERGY FROM W ASTE PL AN T, UK
CENTRE, SCOTL AND ENGL AND Client: CNIM
Client: Gillespie Inv estment Group Client: Conf idential Completion: 1995
Completion: Feasibility & Planning Stage Completion: Feasibility Value: Circa £100 million
Value: Approx. £300 million Value: Approx. £150 million Description: The plant was designed to meet the
Description: 300,000T per annum waste Description: 40 MWe Bio mass Gasification Power challenge of modern waste management and
utilised best av ailable technologies, the majority of
processing f acility for energy generation. house f or energy generation.
which was designed and manuf actured CNIM.
Role: We are currently adv ising the inv estment Role: Adv ising the inv estment partnership on the
group f or the early f easibility, inceptional planning early feasibility, inception planning stages of the The CNIM proposals demonstrated that an
env ironmentally -f riendly process which produces
and v alue engineering stages of the proposed proposed Power Plant and surrounding business
energy f rom waste facility in Scotland. park dev elopment and district Heating & Cooling electricity f rom household and commercial waste is
inf rastructure and 33MVA utilities inf rastructure the best solution to the specif ic waste management
Our primary inv olvement has centered around the requirements of Wolv erhampton.
connection.
cost viability and opportunities f or capital and
operational sav ings as part of the business case Cost viability and opportunities on the capital and Procurement Route: In packages using a selection
study for the inv estment. operational cost as part of the business case study of contracts including ICE, MF/1 and FIDIC.
f or the Partnership Inv estors. Role: We prov ided post contract cost management
f or the redev elopment and upgrading of existing
f acilities.
31