Reliance data in EPC contracts - Revision history

Editor at 19:35, 24 January 2022

2022-01-24T19:35:14Z

← Older revision		Revision as of 19:35, 24 January 2022
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	* Output-based specification.		* Output-based specification.
	* Performance specification.		* Performance specification.
		+	* Submittals.
	* What is an EPC contract?		* What is an EPC contract?

	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]		[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]

Editor at 16:53, 28 December 2021

2021-12-28T16:53:40Z

← Older revision		Revision as of 16:53, 28 December 2021
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	--[[User:JFJ_Afitac\|JFJ Afitac]] 18:29, 03 Jun 2018 (BST)		--[[User:JFJ_Afitac\|JFJ Afitac]] 18:29, 03 Jun 2018 (BST)

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Contract conditions.		* Contract conditions.
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	* Output-based specification.		* Output-based specification.
	* Performance specification.		* Performance specification.
		+	* What is an EPC contract?

	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]		[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]

Designing Buildings at 07:25, 4 February 2021

2021-02-04T07:25:47Z

← Older revision		Revision as of 07:25, 4 February 2021
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	* Performance specification.		* Performance specification.

−	[[Category:~~Projects_and_case_studies~~]] [[Category:~~DCN_Project_Knowledge~~]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]

Designing Buildings at 14:21, 5 November 2018

2018-11-05T14:21:16Z

← Older revision		Revision as of 14:21, 5 November 2018
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−	The starting point of many engineering procurement and construction (EPC) tenders and contract negotiations is as follows: the owner/employer provides the contractor with the data ~~he has~~ in ~~his~~ possession regarding the project together with a specific statement that 'the employer does not give any warranty as to the completeness, accuracy or fitness for purpose' of that information.	+	The starting point of many engineering procurement and construction (EPC) tenders and contract negotiations is as follows: the owner/employer provides the contractor with the data they have in their possession regarding the project together with a specific statement that 'the employer does not give any warranty as to the completeness, accuracy or fitness for purpose' of that information.

−	~~He does~~ this to avoid any claim by the contractor during the project execution on the basis that the provided information is inaccurate or incorrect. Sometimes the situation is even worse and the owner/employer simply tries to avoid giving any information.	+	They do this to avoid any claim by the contractor during the project execution on the basis that the provided information is inaccurate or incorrect. Sometimes the situation is even worse and the owner/employer simply tries to avoid giving any information.

−	In practice, withholding information is counterproductive as it does not enable the EPC contractor to quote properly, with reasonable efforts. Contractors may walk away from the tender, overprice or underestimate the project’s cost. In the latter case, ~~contractor~~ often create trouble during the execution phase in an attempt to limit their losses.	+	In practice, withholding information is counterproductive as it does not enable the EPC contractor to quote properly, with reasonable efforts. Contractors may walk away from the tender, overprice or underestimate the project’s cost. In the latter case, contractors often create trouble during the execution phase in an attempt to limit their losses.

	FIDIC 1999 Silver Book (Clause 5.1) requires the contractor to scrutinise the employer’s requirements prior to the bid submittal. The employer shall not be responsible for any error, inaccuracy or omission of any kind in the employer’s requirements except for data and information which are stated as immutable or the responsibility of the employer and also except for data and information which cannot be verified by the contractor. Having some data on which the contractor may rely (reliance data) is therefore good industry practice and in line with the contract standards.		FIDIC 1999 Silver Book (Clause 5.1) requires the contractor to scrutinise the employer’s requirements prior to the bid submittal. The employer shall not be responsible for any error, inaccuracy or omission of any kind in the employer’s requirements except for data and information which are stated as immutable or the responsibility of the employer and also except for data and information which cannot be verified by the contractor. Having some data on which the contractor may rely (reliance data) is therefore good industry practice and in line with the contract standards.
Line 12:		Line 12:
	* The project 'black box' is somehow connected to, and interacting with, its surroundings/environment. It is physically attached to/founded on the outside world. It also receives some inflow. The 'black box' can be impacted/shaken-up by the outside environment. The quality, magnitude and characteristics of these foundations, inflows, connections and impacts are data that can, and often should, become reliance data.		* The project 'black box' is somehow connected to, and interacting with, its surroundings/environment. It is physically attached to/founded on the outside world. It also receives some inflow. The 'black box' can be impacted/shaken-up by the outside environment. The quality, magnitude and characteristics of these foundations, inflows, connections and impacts are data that can, and often should, become reliance data.

−	~~Concrete example of the 'black box' concept:~~	+	In case of building a hydro power plant for example, the following can be reliance data:
−		+
−	in case of building a hydro power plant, the following can be reliance data:	+

	* Geo-technical baseline data: reference characteristics of subsurface conditions like rock classes ('foundations').		* Geo-technical baseline data: reference characteristics of subsurface conditions like rock classes ('foundations').
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	* Performance specification.		* Performance specification.

−	[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]	+	[[Category:Projects_and_case_studies]] [[Category:DCN_Project_Knowledge]] [[Category:Contracts_/_payment]]

Editor at 12:57, 26 October 2018

2018-10-26T12:57:35Z

← Older revision		Revision as of 12:57, 26 October 2018
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	* Contract conditions.		* Contract conditions.
	* Employer's requirements.		* Employer's requirements.
−	* Engineering procurement construction contract.	+	* Engineering procurement and construction contract.
	* EPCM contract.		* EPCM contract.
	* Output-based specification.		* Output-based specification.

Editor at 12:57, 26 October 2018

2018-10-26T12:57:06Z

← Older revision		Revision as of 12:57, 26 October 2018
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−	The starting point of many EPC tenders and contract negotiations is as follows: the ~~Owner~~ / ~~Employer~~ provides the ~~Contractor~~ with the data he has in his possession regarding the project together with a specific statement that ~~«the Employer~~ does not give any warranty as to the completeness, accuracy or fitness for ~~purpose»~~ of that information. He does this to avoid any claim by the Contractor during the project execution on the basis that the provided information is inaccurate or incorrect. Sometimes the situation is even worse and the Owner / Employer simply tries to avoid giving any information. In practice, withholding information is counterproductive as it does not enable the EPC Contractor to quote properly, with reasonable efforts. Contractors may walk away from the tender, overprice or underestimate the project’s cost. In the latter case, Contractor often create trouble during the execution phase in an attempt to limit their losses.	+	The starting point of many engineering procurement and construction (EPC) tenders and contract negotiations is as follows: the owner/employer provides the contractor with the data he has in his possession regarding the project together with a specific statement that 'the employer does not give any warranty as to the completeness, accuracy or fitness for purpose' of that information.

−	~~FIDIC 1999 Silver Book (Clause 5.1) requires the Contractor~~ to ~~scrutinise~~ the ~~Employer’s Requirements prior to~~ the ~~bid submittal. The Employer shall not be responsible for any error, inaccuracy or omission of any kind in~~ the ~~Employer’s Requirements except for data and~~ information ~~which are stated as immutable~~ or ~~the responsibility of the Employer and also except for data and information which cannot be verified by the Contractor~~. ~~Having some data on which~~ the ~~Contractor may rely (reliance data)~~ is ~~therefore good industry practice~~ and ~~in line with~~ the ~~contract standards~~.	+	He does this to avoid any claim by the contractor during the project execution on the basis that the provided information is inaccurate or incorrect. Sometimes the situation is even worse and the owner/employer simply tries to avoid giving any information.

−	~~The difficulty starts when identifying precisely the “reliance data”~~, ~~“baseline data” or whatever word~~ is ~~defined in~~ the ~~contract~~ to ~~introduce~~ the ~~same concept~~. ~~The data is usually parked~~ in an ~~appendix containing a limited list of data for which the Employer takes responsibility~~. ~~An objective methodology to establish "reliance data" is to look at the project (to be executed) as a “black box”:~~	+	In practice, withholding information is counterproductive as it does not enable the EPC contractor to quote properly, with reasonable efforts. Contractors may walk away from the tender, overprice or underestimate the project’s cost. In the latter case, contractor often create trouble during the execution phase in an attempt to limit their losses.

−	* Whatever is in the ~~box are~~ the ~~works~~ to ~~be executed~~. ~~These are defined in a functional,~~ not ~~detailed~~, ~~not prescriptive specification. The reliance~~ data ~~should not include any~~ information ~~from within~~ the ~~project “black box”.~~	+	FIDIC 1999 Silver Book (Clause 5.1) requires the contractor to scrutinise the employer’s requirements prior to the bid submittal. The employer shall not be responsible for any error, inaccuracy or omission of any kind in the employer’s requirements except for data and information which are stated as immutable or the responsibility of the employer and also except for data and information which cannot be verified by the contractor. Having some data on which the contractor may rely (reliance data) is therefore good industry practice and in line with the contract standards.
−	* The project “black box” is somehow connected to, and ~~interacting with, its surroundings/environment. It is physically attached to/founded on the outside world. It~~ also ~~receives some inflow. The “black box” can~~ be ~~impacted/shaken-up~~ by the ~~outside environment~~. ~~The quality, magnitude and characteristics of these foundations, inflows, connections and impacts are~~ data ~~that can, and often should, become~~ reliance data.	+

−	Concrete example of the ~~“black box”~~ concept:	+	The difficulty starts when identifying precisely the 'reliance data', 'baseline data' or whatever word is defined in the contract to introduce the same concept. The data is usually parked in an appendix containing a limited list of data for which the employer takes responsibility. An objective methodology to establish 'reliance data' is to look at the project (to be executed) as a 'black box':
		+
		+	* Whatever is in the box are the works to be executed. These are defined in a functional, not detailed, not prescriptive specification. The reliance data should not include any information from within the project 'black box'.
		+	* The project 'black box' is somehow connected to, and interacting with, its surroundings/environment. It is physically attached to/founded on the outside world. It also receives some inflow. The 'black box' can be impacted/shaken-up by the outside environment. The quality, magnitude and characteristics of these foundations, inflows, connections and impacts are data that can, and often should, become reliance data.
		+
		+	Concrete example of the 'black box' concept:

	in case of building a hydro power plant, the following can be reliance data:		in case of building a hydro power plant, the following can be reliance data:

−	* Geo-technical baseline data: reference characteristics of subsurface conditions like rock classes (~~“foundations”~~)	+	* Geo-technical baseline data: reference characteristics of subsurface conditions like rock classes ('foundations').
−	* Water quality: chemical composition of water quality for which the penstocks and turbine equipment should be designed; maximum water temperature to be taken into consideration for the design of the cooling system; hydrological data (~~“inflow”~~)	+	* Water quality: chemical composition of water quality for which the penstocks and turbine equipment should be designed; maximum water temperature to be taken into consideration for the design of the cooling system; hydrological data ('inflow').
−	* Grid connection information: data related to the transmission line and grid characteristics (voltage, frequency). The electric grid often still has to be expanded under a separate contract (~~“connections”~~)	+	* Grid connection information: data related to the transmission line and grid characteristics (voltage, frequency). The electric grid often still has to be expanded under a separate contract ('connections').
−	* Maximum wind speed or seismic acceleration coefficient: design requirements that the ~~“black box”~~ will have to withstand (~~“impacts”~~).	+	* Maximum wind speed or seismic acceleration coefficient: design requirements that the 'black box' will have to withstand ('impacts').
		+
		+	Some concept of reliance data is healthy for a balanced EPC contract. It is necessary to minimise the information to those design inputs that are essential and cannot reasonably be verified by the contractor during the tender stage. This includes information that is the result of long-term data series or unaccessible or needing unreasonable efforts and resources to obtain during the tender stage (when the contractor is not sure to be awarded the contract).
		+
		+	--[[User:JFJ_Afitac\|JFJ Afitac]] 18:29, 03 Jun 2018 (BST)

−	Some concept of reliance data is healthy for a balanced EPC contract. It is necessary to minimise the information to those design inputs that are essential and cannot reasonably be verified by the Contractor during the tender stage. This includes information that is the result of long-term data series or unaccessible or needing unreasonable efforts and resources to obtain during the tender stage (when the Contractor is not sure to be awarded the contract).	+	= Related articles on Designing Buildings Wiki =

−	-~~-[[User:JFJ Afitac\|JFJ Afitac]] 18:29, 03 Jun 2018 (BST)~~	+	* Contract conditions.
		+	* Employer's requirements.
		+	* Engineering procurement construction contract.
		+	* EPCM contract.
		+	* Output-based specification.
		+	* Performance specification.

	[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]		[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]

Editor: moved Reliance data in EPC Contracts to Reliance data in EPC contracts

2018-10-26T12:51:10Z

moved Reliance data in EPC Contracts to Reliance data in EPC contracts

← Older revision

Revision as of 12:51, 26 October 2018

JFJ Afitac at 17:29, 3 June 2018

2018-06-03T17:29:11Z

← Older revision		Revision as of 17:29, 3 June 2018
Line 18:		Line 18:

	Some concept of reliance data is healthy for a balanced EPC contract. It is necessary to minimise the information to those design inputs that are essential and cannot reasonably be verified by the Contractor during the tender stage. This includes information that is the result of long-term data series or unaccessible or needing unreasonable efforts and resources to obtain during the tender stage (when the Contractor is not sure to be awarded the contract).		Some concept of reliance data is healthy for a balanced EPC contract. It is necessary to minimise the information to those design inputs that are essential and cannot reasonably be verified by the Contractor during the tender stage. This includes information that is the result of long-term data series or unaccessible or needing unreasonable efforts and resources to obtain during the tender stage (when the Contractor is not sure to be awarded the contract).
		+
		+	--[[User:JFJ Afitac\|JFJ Afitac]] 18:29, 03 Jun 2018 (BST)

	[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]		[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]

JFJ Afitac: Created page with "The starting point of many EPC tenders and contract negotiations is as follows: the Owner / Employer provides the Contractor with the data he has in his possession regarding the ..."

2018-06-03T17:21:52Z

Created page with "The starting point of many EPC tenders and contract negotiations is as follows: the Owner / Employer provides the Contractor with the data he has in his possession regarding the ..."

New page

The starting point of many EPC tenders and contract negotiations is as follows: the Owner / Employer provides the Contractor with the data he has in his possession regarding the project together with a specific statement that «the Employer does not give any warranty as to the completeness, accuracy or fitness for purpose» of that information. He does this to avoid any claim by the Contractor during the project execution on the basis that the provided information is inaccurate or incorrect. Sometimes the situation is even worse and the Owner / Employer simply tries to avoid giving any information. In practice, withholding information is counterproductive as it does not enable the EPC Contractor to quote properly, with reasonable efforts. Contractors may walk away from the tender, overprice or underestimate the project’s cost. In the latter case, Contractor often create trouble during the execution phase in an attempt to limit their losses.

FIDIC 1999 Silver Book (Clause 5.1) requires the Contractor to scrutinise the Employer’s Requirements prior to the bid submittal. The Employer shall not be responsible for any error, inaccuracy or omission of any kind in the Employer’s Requirements except for data and information which are stated as immutable or the responsibility of the Employer and also except for data and information which cannot be verified by the Contractor. Having some data on which the Contractor may rely (reliance data) is therefore good industry practice and in line with the contract standards.

The difficulty starts when identifying precisely the “reliance data”, “baseline data” or whatever word is defined in the contract to introduce the same concept. The data is usually parked in an appendix containing a limited list of data for which the Employer takes responsibility. An objective methodology to establish "reliance data" is to look at the project (to be executed) as a “black box”:

* Whatever is in the box are the works to be executed. These are defined in a functional, not detailed, not prescriptive specification. The reliance data should not include any information from within the project “black box”.
* The project “black box” is somehow connected to, and interacting with, its surroundings/environment. It is physically attached to/founded on the outside world. It also receives some inflow. The “black box” can be impacted/shaken-up by the outside environment. The quality, magnitude and characteristics of these foundations, inflows, connections and impacts are data that can, and often should, become reliance data.

Concrete example of the “black box” concept:

in case of building a hydro power plant, the following can be reliance data:

* Geo-technical baseline data: reference characteristics of subsurface conditions like rock classes (“foundations”)
* Water quality: chemical composition of water quality for which the penstocks and turbine equipment should be designed; maximum water temperature to be taken into consideration for the design of the cooling system; hydrological data (“inflow”)
* Grid connection information: data related to the transmission line and grid characteristics (voltage, frequency). The electric grid often still has to be expanded under a separate contract (“connections”)
* Maximum wind speed or seismic acceleration coefficient: design requirements that the “black box” will have to withstand (“impacts”).

Some concept of reliance data is healthy for a balanced EPC contract. It is necessary to minimise the information to those design inputs that are essential and cannot reasonably be verified by the Contractor during the tender stage. This includes information that is the result of long-term data series or unaccessible or needing unreasonable efforts and resources to obtain during the tender stage (when the Contractor is not sure to be awarded the contract).

[[Category:Projects_and_case_studies]] [[Category:Contracts_/_payment]]