Industry publication, December 2001

NYC 9/11 Public Portal Document

I' / Let us control your Nox THE emissions with our new and hot power market. “We think the market CHEMICAL improved urea solutions. will continue to grow. It will mature in Carbamide XL® some places,” he allows. “The southeast COMPANY We have the answer at has a tremendous amount of activity at this moment,” especially Mississippi and regular urea solution prices. Alabama. “If you really have deregula­ Why pay more? tion, they’re going to have to replace all these 50-year-old powerplants.” PO Box 436 RISK TAKERS BBSSSSM 19 Narragansett Avenue Jamestown, RI 02835-0436 Allocation of risk is the www.tliecheinca.coin Tel. 40L423.3100 Fax: 40L423.3102 factor that will make or break a contractor, says VECO’s Szabo. “You’ve got to be very selective. ■ V You can lose your pants if you don’t have prop- levy er contracts.” Equip- ment manufacturers, such as GE or ABB, will accept responsibility for perfor­ mance, but not for schedule. If the equipment malfunctions, “the EPC con­ tractor can be left holding the bag for delays,” Szabo says. “There are liquidated damages associated with nearly every proj- n ect today. That’s the H biggest concern.” Dan Zabilansky, senior vice president of Ii Lockwood Greene, Charlotte, N.C., notes KNAPP that liquidated dam­ 1 ages for powerplant ! EPC contracts run from $50,000 to $80,000 per day, “so you better know what you’re doing.” One pitfail for unwary EPC contrac­ tors is in the purchase order for power island equipment, says Al Knapp, senior vice president at Steam- boat Springs, Colo.- based contractor TIC K Holdings Inc. Manufac- Ta turers often provide |A' ‘ 'jl boilerplate purchase r . orders signed by devel- dcW opers and then as- BB vi_ signed to the EPC con- zabilansky tractor, whose terms BRILLIANT THINGS include a 90-day grace period after start­ up for necessary equipment modifica­ HAPPEN WHEN PEOPLE tions. “[Equipment makers] are in a learning environment as well,” Knapp WORK TOGETHER acknowledges. But the manufacturer’s liquidated damages, typically $400 per From project concept to asset management, day, are not nearly as highly motivating ) Accord Development Group is committed to as the contractor’s. The EPC contractor thus must pick up on the grace period’s providing its clients with professional and significance and be prepared to mitigate cost effective project development services. the risk in such contract language. 972.715.7600 4100 Spring Valley Our experienced teams will enhance your “Financial strength is a problem in Suite 800 success in both the domestic and interna­ our industry,” says Chris Tye, senior vice Dallas, Texas 75244 president of project services for Wicu th’evil’ TuMKwi' accorddg.com tional energy markets. Duke/Fluor Daniel, Charlotte, N.C. The

Powerplant Construction-17

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