energy from waste and low carbon energy capability statement
DESCRIPTION
Our capability statement for the development of Low Carbon Energy Generation and Energy from Waste projects on a global scaleTRANSCRIPT
Energy & Utilities – Low Carbon Energy Generation & Energy from Waste
1
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
o WHO TO CALL 40
o CLIENTS 30
o EXPERIENCE 31
4. PEOPLE
3. EXPERIENCE
o DETAILED SERVICE OFFERINGS 13
o OUR RANGE OF SERVICES 11
o SOLUTIONS FOR THE LOW CARBON ENERGY 12
AND ENERGY FROM WASTE MARKETPLACE
o ENERGY SECTOR SERVICES 10
2. KNOWLEDGE
CONTENTS
4
1.1_ABOUT DAVIS LANGDON
o Our Energy Sector
o Our UK Offices
o Our Global Reach
Dav is Langdon is a global construction
consultancy, prov iding managed solutions f or
clients inv esting in inf rastructure, property and
construction, worldwide.
It is the recipient of a number of industry awards
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 Year
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
worldwide.
5
1.2_OUR ENERGY SECTOR
The Energy Team
As an integrated team of engineering energy
prof essionals and our specialists serv ices group,
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
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
Our energy sector groups
6
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
7
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
10
2.1_ENERGY SECTOR SERVICES
Our offering to the energy sector
goes beyond that of traditional project and cost management. It is
categorised as either:
o “Strategic”, where we bring to
bear our corporate knowledge and experience on a continuous
role.
o “Tactical” where we deploy
specialist teams of highly
experienced and qualified staff to focus on one particular area
of the project.
The Dav is Langdon energy sector team is a product
of sector specific experience and our corporate
knowledge. It is this cross fertilisation of ideas and
best practices from all our projects with the
experience of energy prof essionals that we believ e
to be our principle diff erentiator.
Service Offer: Strategic
Program / Project Management – Includes Project
Controls and Programme Gov ernance which can be
deploy ed as indiv idual or integrated modules.
Cost Management – Including Cost Planning,
Benchmarking, Inf lation/Construction Economics
trends and f orecasts, Value Analy sis, Lif ecy cle
Costing, Procurement and Post Contract Cost
Management serv ices
Funders Technical Advisory / Due Diligence -
Helping f unders to establish the v iability of the
inv estments and identifying opportunities to cross
sell the macro risk
Global Sourcing / International Procurement –
Identify ing where and when to procure f rom the
global marketplace whilst balancing macro risk
f actors.
Service Offer: Tactical
Strategic Utilities Solutions – Adv isory serv ices
ranging f rom utilities procurement to costing and
managing utility div ersions
ESCo & MUSCo Solutions – Balancing the
commercial and communal needs of the
stakeholders
Engineering Services – Standalone technical
consultancy that capitalises on our experience and
knowledge of the sector
Asset Maximisation – Business case dev elopment
serv ice encompassing tariff and rev enue modelling
f or distributed heat, cooling and energy schemes.
Legislative Guidance – Adv isor serv ices f ocused
on utility connection costs, rev iewing the charges
lev ied by statutory undertakers and compliance to
their statutory obligations.
Ratings - Consultancy agreeing local authority
rates f or petrochemical installations
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
11
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;
12
2.3_SOLUTIONS FOR THE LOW CARBON ENERGY & EfW MARKETPLACE
We hav e dev eloped the following solution off erings
which are the most relev ant to the Energy f rom
Waste and Waste marketplaces, lev eraging our
wide breadth of skills sets f rom across the
business.
These solutions are designed around our clients
aspirations and requirements, namely ;
Funders
Supply Chain
Publ ic Sector
Commercial
& Public Deve lopers
Energy Developer
ESCo Brokerage
Landfil l Mining
> EfW >> Property
Development
Mixed Use
Development Energy
Solutions
Waste Minimisat ion
Strategy
Waste
Infrastructure
Procurement
EPC Support
Technology
Commercial isation
Energy TA /
Due Diligence
Lenders TA
(PFI/PPP)
Project
“Unlocking”
Grid Connection
Procurement
Owners
Representative
Development
Management & Support
SPV Bid
Support (PFI / PPP)
Our
Solutions
ESCo Brokerage
Landfil l Mining
> EfW >> Property
Development
Mixed Use
Development Energy
Solutions
Waste Minimisat ion
Strategy
Waste
Infrastructure
Procurement
EPC Support
Technology
Commercial isation
Energy TA /
Due Diligence
Lenders TA
(PFI/PPP)
Project
“Unlocking”
Grid Connection
Procurement
Owners
Representative
Development
Management & Support
SPV Bid
Support (PFI / PPP)
Our
Solutions
13
2.4_ESTABLISHING THE BRIEF
DLivering Success
DLiv ering Success was dev eloped by Davis
Langdon in 2005 in the wake of a number of high
prof ile construction project failures. To reinf orce its
position as a world class f irm of Construction
Consultants, Dav is Langdon dev eloped a serv ice to
rev iew all major projects in which we were, or
hoped to be, inv olv ed to maximise the likelihood of
a successf ul outcome both f or y ou and Davis
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:
•Puts projects on the right footing f rom the outset
•Enhances understanding of the project imperatives
by the whole team
•Imparts clarity, realism, commitment and
collaboration throughout the project team
•Identif ies focused, project specif ic activ ities to build
on strengths and treat weaknesses
•Prov ides a means for the project team to resolv e
any issues that are critical to success
•Embeds the principles of good Project Gov ernance
We hav e dev eloped and hav e ref ined a v ery
successful f ormat for conducting a short, intensiv e
workshop that addresses three primary questions;
Why, What and How? to maximise the likelihood of
a successf ul outcome for y ou.
Market Review
Dav is Langdon’s inv estment in Research and Market
Intelligence is unique in our sector. Our Energy Sector
team in conjunction with our Prof essional
Dev elopment team collaborate to prov ide:
•Cost research and market intelligence with up-to-date
market knowledge taken f rom a wide range of sources
– keeping y ou ahead of the market
The DLivering Success Model • Cost inf ormation, external publications
and client f ocused research including
economic and market brief ings;
• Market brief ings f or sectors and ov erseas
markets
• Industry experts in Building Env elope Solutions,
Construction Economics and Market Conditions
enable y ou to prov ide an unriv alled lev el of industry
insight f or clients
Stakeholder Engagement
Our Management Consultancy and Value, Planning
& Risk teams pref er the term “Stakeholder
Engagement” to “Stakeholder Management”
because managing stakeholders is a purely
mechanistic mindset and is unlikely to work.
Engaging them through-out the lif etime of a
programme enhances the collaborativ e ethos that
Dav is Langdon pursues in its programmes.
Dav is Langdon has adopted the six stage
stakeholder engagement process identif ied by
Managing Successf ul Programmes (OGC). Identify -
Analy se- Def ine- Plan- Engage- Measure.
Stakeholder mapping- identifying, analy sing, and
v isualising the stakeholders- is the first step of the
stakeholder engagement strategy . We hav e
dev eloped tools and techniques to help you engage
y our stakeholders in y our project/ programme.
14
2.5_FEASIBILITY
Operational Costs – Asset Maximisation
By linking in with our clients we will be able to adv ise
on the most effectiv e modelling of operational costs by
the utilisation of our Engineering Serv ices team.
In order to maximise the opportunities that may exist
within certain dev elopment projects, Dav is Langdon
can prov ide a business case dev elopment serv ice
encompassing tariff and rev enue modeling f or
distributed heat, cooling and energy schemes. The
aim of the rev iew is to establish the lev el of potential
return on asset that f unders can achiev e by managing,
owning and operating assets.
Capital Cost Forecast - Cost Management
Prov ides clients assurance of their financial risk,
ensuring effective cost planning and budget control,
best v alue for money and ultimately, sustainable
prof itability.
For any range of projects to be f inancially
successful, costs (and risks and opportunities) must
be clearly and concisely understood by the whole
Team – including the stakeholders of the project.
We believ e that it is only by the production of
detailed cost estimates at the earliest stage of the
project, which are then regularly updated, that the
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.
Benchmarking
Benchmarking is the comparison of a proposed
scheme with other schemes of similar type and class,
looking at cost and value, and the driv ers of both.
Cost Planning
During the course of sketch design, the cost model
needs to be dev eloped into a detailed Cost Plan,
itemising the approximate quantities and rates of all
elements of the scheme.
15
2.5_FEASIBILITY
Life Cycle Costs
Whole lif e costing (WLC) and life cycle costing (LCC)
are structured approaches to analysing costs and
spend prof iles of assets, components, sy stems and/or
serv ices ov er an agreed period of time. WLC
addresses the total costs and economics of ownership
f rom inception to disposal, including LCC, whereas
LCC addresses solely the operational phase. The
primary objectiv e of these methods of analy sis is to
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.
O perating c ost
Maintenanc e c ost
Cost
Failure and
Consequential loss
total cost of owner ship
Capital cos t
OP
TIM
UM
Financial Modelling
The total system cost is a dimension that is key to
the success of any inv estment strategy in the
energy sector. The illustration below details how the
supply & demand can be modelled to prov ide
greater f idelity on the earning potential of any new
energy plant. By understanding the wider picture,
we can prov ide greater context to the numbers
underpinning the inv estment.
We are able to factor in materials price inf lation,
currency exchange rates and other macro economic
dimensions, ov er changing time periods. We can
model the S-Curv e of cashf low and bias it
accordingly to the f ront end f or LIP’s in order to
assess the potential v olatility in price of key items.
The scenarios we model usually look at contingency
management and establishing that there is suff icient
allowance f or this item along with material costs.
16
2.5_FEASIBILITY
Business Case Production
Our Business Improv ement team f ocuses on those
serv ices that hav e been ref erred to in the requirement
areas of ‘Strategy and management consultancy’ and
‘Business/corporate dev elopment’. We aim to improv e
our client’s perf ormance through better strategy ,
change, process and organisational dev elopment.
Our work ranges f rom assisting clients in dev eloping
strategies, usually with particular emphasis on the part
their built asset strategy aligns with the corporate
strategy.
Our consultants are trained and experienced in issue
identif ication, on data collection and analy sis, on
working collaborativ ely with the client on problem
solv ing and in the skills of presentation, report-writing
and implementation planning.
The Business Case should:
•clarify the Client's needs and the context of those
needs in business terms;
•prov ide a vehicle f or agreement and understanding of
those needs within the business and by all
stakeholders;
•prov ide an early identif ication of the v iability of a
project in terms of risk and opportunity; and
•prov ide a basis against which to assess the v iability
of the various options that will be generated during the
Feasibility Stage.
We f ocus on planning at an early stage f or tax
claims f or:
• Capital and Enhanced Capital Allowances
• VAT
• International Tax Depreciation Allowances
Cashflow Forecasting
To the majority of businesses in a competitiv e
marketplace, “cashf low is king” and can materially
affect the return on inv estment of business
v entures.
Dav is Langdon hav e the tools and resources to
f orecast cashf low of asset inv estment, utilising
different cashf low models whether either standard
or bespoke to particular clients.
By prov iding eff ectiv e cashf low f orecasting into the
Financial Model, the v iability of a scheme can be
determined, prov iding an understanding of the
capital expenditure liability a client take on through
the inv estment. Ca sh Flow
£0
£5 00 ,0 00
£1 ,0 00 ,0 00
£1 ,5 00 ,0 00
£2 ,0 00 ,0 00
£2 ,5 00 ,0 00
£3 ,0 00 ,0 00
£3 ,5 00 ,0 00
£4 ,0 00 ,0 00
£4 ,5 00 ,0 00
May-
09
Jul -0
9
S ep-0
9
Nov-
09
Jan-1
0
Mar -
10
May-
10
Jul- 1
0
Sep-
10
Dat e
Cum
ulat
ive
Va
lue
Mo
nth
ly V
alu
e
7 8 we ek - P r oj ec t ed Mo n th ly
7 8 we ek - P r oj ec t ed Cu mul a ti ve
Tax, Capital Allowances and Enhanced Capital
Allowances Planning
Our objectiv e is to identify, analy se and adv ise on
taxation liability and technical risks surrounding
construction projects, or the acquisition of existing
assets. In this way, we are able to assist clients in
reducing their tax on prof its. With Tax planning, we
can assist in the decision making process of
balancing risk and reward.
Our experience enables us to agree claims at an
optimum lev el. We do not, unless instructed
otherwise, take the easy option of submitting low
claims that will be readily accepted by the HMRC.
Howev er, we are alway s conscious that capital
allowances are only one tax issue, and we would
nev er compromise a client’s ongoing relationship
with the tax authorities.
The advantages of early tax planning
17
2.6_RISK MITIGATION & VALUE MAXIMISATION
Value, Planning and Risk Management
The Value Planning and Risk Team prov ide a
unique combination of business and project
perf ormance improv ement adv ice, geared towards
prov iding certainty of outcome f or our Clients. Our
suite of serv ices help to add v alue and reduce risk
by : def ining and articulating objectiv es; setting
direction; improv ing deliv erability and eff iciency ;
monitoring progress; and f ostering collaboration.
The Team can help y ou:
• create the conditions for success on y our
programme through our unique DLiv ering
Success serv ice
• analy se and manage y our programme/project
risks and opportunities in order to minimise
negativ e consequences and maximise
opportunities
• Make rational and explicit decisions against
objectiv e criteria through a robust Value
Management and Value Improv ement process
• monitor and analyse perf ormance against the
programme schedule by using Planning,
Programme and Project Control tools and
techniques such as Earned v alue Analysis
Risk Management
Our approach to Risk Management improv es
program or project teams’ conf idence that outcomes
will meet or exceed expectations.
We prov ide quantitativ e and qualitativ e Risk
Management as well as a Schedule Risk Analy sis
sy stem
Our main emphasis is to put in place the necessary
activ ities to manage risk, and ensure that they are
effectively implemented.Value Management
The main purpose of Value Management is to
maximise the benef its of undertaking a project,
whilst optimising the resources inv ested.
Benef its are articulated and maximised using
Function Analy sis techniques, and inv estments are
ty pically optimised through cost and time analy sis.
Value management techniques underpin our Value
Improv ing Practices such as Value Engineering,
Process Simplif ication and Waste minimisationPlanning, Programming and Project Controls
During the lif e of a project a disciplined planning
approach is essential to control its direction,
outcome and risks.
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
Review Identifica tion
Ana lysisManagement
• L ik e lihood
• Im pact•Quali ta tive / Quantita tive
• Proximi ty• Val idated Ris k Regis ter
• Risk Study Report
• Pro jec t Unders tanding
• Risk Tolerance and Appeti te
• Draft Func tion Analy sis
• In i tial Ris k Regis ter
• Revise Ris k Regis ter• Reas sess L ik el ihood
and Im pac t o f Risks
• Risk Report Updates
• Es tablish Risk Owners• Agree M anagem ent
Ac tions and Ind iv idual
Owners• Set Risk Rev iew
Frequency
Risk Ma na gement
Revi ew Identifi cati on
Anal ysisMa na gement
• Likelihood
• Impact•Qualitative / Quantitative
• Proximity• Validated Risk Register
• Risk Study Report
• Project Understanding
• Risk Tolerance andAppetite
• Draft Function Analysis
• Initial Risk Register
• Revise Risk Register• Reassess Likelihood
and Impact of Risks
• Risk Report Updates
• Establish Risk Owners• Agree M anagem ent
Actions and Individual
Owners• Set Risk Review
Frequency
Optimise Costs
Fine Tune Validate
Need
Define Project
Select Options
Optimise Costs
Fine Tune Validate
Need
Define Project
Select Options
18
2.7_CONCEPT
Cost & Value Engineering
Applied at the Design Dev elopment Stage to
maximise cost eff ectiv eness of design solutions.
Facilitated brain storm of new ideas to perf orm
identif ied functions. Ideas are ev aluated and the
pref erred ones are dev eloped into proposals to
f urther inv estigate v iability. Ideas are presented to
decision makers who determine the number to be
implemented.
Value Engineering
Applied at the Detailed Design Stage to align cost
estimate with budget. Similar process to Cost
Engineering but it is undertaken later in the project
lif ecycle hence the ev aluation and implementation
criteria are more stringent.
The engineer ing team also undertake in depth
rev iews of engineering serv ices tender designs and
assess the completeness and quality of mechanical
and electrical serv ices proposals
Design Management
Improv es and optimises the design process through
analy sing and planning the design stages and
approv al procedures and through def ining the project
deliv erables when initiating the project.
This serv ice is created to steer all consultants and
disciplines to work in sy nchrony, av oiding abortiv e or
repetitiv e work. It is about managing the consultants
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.
In Dav is Langdon, a large proportion of the serv ice is
based on the accurate coordination of ev ents: and
hence is combined with our planning and
programming expertise. When using traditional
planning techniques, the design process is sculpted
into the broader v ision of a project. Through design
change management, we prov ide immediate
ev aluation of any v ariation to the scope or programme.
19
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.
20
2.9_PROJECT ‘UNLOCKING’
Funding Brokerage
Dav is Langdon has exceptional experience in
adv ising banks, inv estors and insurers alike in
respect of identify ing and managing construction
and other dev elopment risks.
This access to funding streams allows us to engage
in brokerage f or clients planning inv estment within
energy assets. Theref ore by engaging with f unders
and inv estors, we can open the f unding streams for
f urther inv estigation into project v entures. This
includes:
• Priv ate Equity
• Debt Funding
• Grant Funding
Grant Funding
For projects in the energy sector there are a variety
of grants and f unding streams av ailable that could
be harnessed to improv e the financial v iability of the
project, and reduce the amount of financing that
clients need to secure f rom other sources.
There are two key reasons f or the av ailability f or
grants and f unding:
1) The Gov ernment are keen to promote and
encourage the generation of power by sustainable
means to work towards their carbon reduction
commitments.
2) Giv en that projects can be built in depressed
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.
PPA Procurement & Brokerage
By utilising our network within the energy purchase
marketplace, our existing property and high energy
users clients f rom other sectors, Davis Langdon can
connect energy dev elopers and end users to secure
PPA’s on schemes. This often secures project
f inance and inv estment from third parties, and break
down a project dev elopment barrier.
21
2.10_BUYING BETTER
Purchase & Supply Chain Engineering
This is a diff erentiated Whole Lif e approach to buy ing
and deliv ery; we combine our Strategic Procurement
practices and our Supply Chain Management
expertise. We achiev e visibility of the supply chain at
the earliest opportunity and undertake a rev iew
against our Purchase and Supplier Engineering
Framework to ensure f itness f or
purpose/capability/capacity appetite. We implement an
integrated lateral procurement approach by
dev eloping a common component strategy , clustering
modelling and improv e partnering in the Supply Chain,
(Local/ National/ Global) which harnesses and
exploits Clients’ purchasing power. In addition we
closely monitor all Tier 1 and Tier 2 suppliers and
those of deliv ery stakeholders to ensure maximum
v alue and response to the Clients Tender
opportunities. We hav e successf ully used this
“Common Components strategy ” on London 2012 and
in doing so hav e sav ed up to 25% f rom the original
package costs.
Program Management
Our Program Management team work
collaborativ ely with clients in the conception,
management, control and deliv ery of major complex
programs.
The key outputs of our approach are the set of
policies, strategies and processes that help to
identify all necessary project requirements and
gov ern their implementation.
We prov ide the necessary leadership to run large
scale programs and set up the correct culture to
help ensure successf ul implementation.
Our approach to Program Management is to ‘think
big’ through the application of our program, project
management, cost management and specialist
serv ices. We continually ref ine our policies,
strategies and processes through our rigorous
Lessons Learnt process.
This integrated approach helps ensure consistency
and f low of inf ormation between the Program,
Project and Contract lev els, which is constantly
ref ined.
Project Management
Our Project Management team prov ide an
independent prof essional serv ice to plan, lead,
organise and control the management of projects and
programs, f rom inception to reality . Recognised as
one of the world’s leading prov iders of management
and consultancy serv ices, we employ highly skilled
project managers f rom a div erse mix of prof essional
disciplines.
With experience across a wide range of sectors, we
hav e the in-house skills and market expertise to
recognise potential and def ine objectiv es f rom the
outset, whilst also ensuring the deliv ery of v alue and
appropriate management of risk throughout the project
cy cle.
Our people are experienced and highly motiv ated
prof essional project managers with a commitment to
understanding the business objectiv es of our clients,
and aligning projects towards the deliv ery of optimum
business v alue.
We see that our role is to lighten the load for our
clients through the application of systems and
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.
22
2.10_BUYING BETTER
Contract Advice – Legal Support
Our Legal Support Group is recognised f or the high
lev el of specialist experience it prov ides to the legal
processes associated with ev ery stage of the
construction cycle and ev ery ty pe of construction
project.
We prov ide expert adv ice – whether prior to
commencement, at commencement, during or af ter
completion of projects – which will help av oid
disputes or, if disputes are registered, leads to their
effective resolution.
Legal Support can assist in the preparation of
contract documents and other matters where
specialist construction knowledge is required as
well as contractual awareness and appreciation of
commercial pressures.
Grid Connection Procurement – Utilities
Infrastructure
With the de-regulation of the utilities marketplace, we
hav e championed the dev elopment of competition in
this sector. With sev eral members of the Team being
members of Gov ernment regulatory steering
committees, we are uniquely placed to prov ide clients
with the latest market opportunities.
The Team can prov ide f ully detailed procurement
‘optioneering’ studies f or new utility serv ices, tailored
specif ically to dev elopments. The study explains the
adv antages and disadv antages of serv ices installed
and owned by statutory undertakers, serv ices installed
by third parties f or adoption by host statutory
undertakers, inset and priv ate networks coupled with
the reduced capital or ongoing rev enue opportunities.
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.
23
2.11_CONSTRUCTION
Project Controls
Our Project Control goal is to keep the Project on-track, on-time and within budget by comparing actual perf ormance with planned perf ormance and identifying corrective action to generate the desired outcome.
Our Project Controller will prov ide clear and detailed inf ormation to the client and Management on status and progress by establishing, with the team, the deliv ery schedule and subsequently prov iding inf ormation on status and progress.
The Project Controller will:
•Establish the Work Breakdown Structure and scope
•Def ine the stages, phases, milestones, perf ormance indicators and periodic rev iew points
•Determine the resources, budgets and costs baselines
•Agree the periodicity and f requency of the reporting cy cle
•Establish the content and construction of the v arious reports.
The f ollowing monitoring and control requirements will be prov ided:
•Periodic cost perf ormance and schedule perf ormance indices to ref lect the true project position
•Ensuring that costs are captured and aligned to schedule activ ities
•Managing the alignment of time and cost in the plan
•Ensuring that approv ed change is captured in the schedule and costs
•Identify ing exceptions and v ariances to planned perf ormance
•Facilitating appropriate management interv ention to maintain planned perf ormance, reduce and/or mitigate perf ormance degradation.
Project Management and the client will require clear
and detailed status and progress information, the
Project Controller will deliv er timely and accurate
perf ormance and update inf ormation against planned
perf ormance targets.
Earned Value Management/Analysis
Our EVM sy stem is based upon a structured approach
to planning, cost collection and perf ormance
management that can be applied to projects of vary ing
size, scope and duration and will objectiv ely and
accurately identify dev iations f rom the plan.
The key phrase is ‘structured approach’. An effectiv e
sy stem does require ▪ a clear understanding of the
contract scope of work ▪ dev elopment of a ‘baseline’
against which cost and schedule perf ormance can be
measured ▪ realistic progress and perf ormance
measurement and ▪ disciplined and timely
incorporation of approv ed changes to the ‘baseline’.
Our approach aligns with industry best practice
guidelines including the APMs ‘ Earned Value
Management APM Guidelines’, and draws upon
experience gained across a variety of sectors and
stages of a project.
It helps us to manage by ▪ prov iding v ariance
analy sis and correctiv e action reporting ▪
prov iding data that enables a clear
measurement of project status ▪ supporting the
effective management of resources and ▪
prov iding a basis f or estimating outturn (f inal)
cost, and when the project will be complete.
An effectiv e EVM system may not wholly
replace ‘traditional’ measurement methods,
but should be used as one of a number of
perf ormance indicators upon which project
managers base their decisions.
24
2.11_CONSTRUCTION
Cost Management
Dav is Langdon’s cost management serv ices
prov ides clients assurance of their f inancial risk,
ensuring effective cost planning and budget control,
best v alue for money and ultimately, sustainable
prof itability f or inv estments.
Cost Forecasting & Reporting
Establish a ‘traff ic light’ sy stem of cost forecasting.
By liaising closely with the Design Teams on a
regular basis we will be in a position to forecast, in
terms of cost, potential design changes and options.
By identify ing (Red f or imminent, etc) when
decisions need to be made, in order to minimise /
remov e effect on programme, the Client can make
changes in a timely fashion.
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.
Cashflow and Cost Management
Establishing the f ramework, and then administering
the f inance prov isions of the Contract(s) to control the
Client’s cash f low and the cost effects of change,
whilst securing perf ormance f rom the Contractor(s).
Risk & Value Engineering
See 2.6_Risk Mitigation & Value Maximisation
Project Management
See 2.10_Buy ing Better
CDM Co-ordinator
The CDM Co-ordinator role prov ides the client with
adv ice in respect of construction health and saf ety
risk management matters. The Co-ordinator assists
and adv ises the client on the appointment of
competent designers and contractors and the
adequacy of management arrangements; ensures
proper co-ordination of health and saf ety aspects of
the design process; facilitates good communication
between project team members and prepares the
health and saf ety file.
The Co-ordinator wi ll make a signif icant contribution
to reducing risk to workers during construction, and
to contractors and end users who work on or in the
dev elopment af ter construction.
The Co-ordinator wi ll f acilitate CDM workshops to
highlight hazards and risks and assist the
construction team to prov ide solutions as to how
they may be managed.
25
2.12_COMMISSIONING & HANDOVER
Financial Closure – Cost Management
Throughout the construction project numerous
challenges will hav e been f aced in the scheme, but
all v ariations, claims and disputes will require
closure to ensure a smooth transition between the
construction and operation phases.
By the use of proactiv e Cost Management
throughout the construction phases, the financial
closure procedure should be more efficient.
Howev er at the closure of projects, numerous
stakeholders and contractor’s rev iew their internal
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
possible. Our Cost Managers will instil an
importance on f inancial closure, to ensure the client
has limited cost exposure and liability f or v ariation
claims.
Tax, Capital Allowances and Enhanced Capital
Allowances Claims
Once the project is on site there will be regular
updates on the level of allowances and we can also
work with the design team to make sure the
solutions they prov ide are dealt with in a tax
efficient manner.
When the building is constructed it is important to
consider any contributions to f itting out works and
also with new rules f or leases of ov er 5 y ears, how
that may impact on the lev el of allowances.
Where an asset is sold Dav is Langdon will be able to
assist by giv ing estimates of allowances inherent on a
sale, whether it is by means of transferring the an
asset or the sale of assets within a company .
Lessons Learnt Workshops
A tailored independent study to retrospectiv ely
analy se project perf ormance and suggest
improv ements f or incorporation into other projects, as
part of a programme of work or a Corporate portf olio.
The Lessons Learnt Process we follow
Key f eatures:
•Undertaken at the conclusion of signif icant
milestones – ty pically post construction stage
•Collection of qualitativ e and quantitativ e data
•Analy sis of original targets and the teams
perf ormance to them
•Ref lection and collaborativ e problem solv ing
undertaken in workshops f acilitated by experienced
staff
•Compilation of an Action Plan to implement change
Capture Learning (through questionnaires)
Qualitative:
• What worked wel l?
• What didn’t work well?
• What was no t included?
• Wha t should be avoided?
Quantitative:
• Cost, Time, Qual ity
• Opinions on sta tements
(through interviews)
• Discuss questionnaire r esponses
• Ga ther more information
Analyse Resul ts
• Draw trends
• Design workshop
sessions
Embed Actions:
• Processes
• Systems
• Approaches
Capture Learning
(through workshop)
• Targeted e xercises to discuss key lessons
• Develop an Action P lan
Report Results
• Questionnaires, interviews
• Workshop sessions
• Next Steps
Review:
• Ensure effect iveness of
Processes, Systems
& Approaches
26
2.13_ESCO BROKERAGE
We understand the technicalities of the v arious
renewable 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.
27
2.14_FUNDER DUE DILIGENCE
Energy Technical Advisory
Initial Assessment
We specialise in the deliv ery of detailed
independent adv ice by experts on behalf of funders,
inv estors, insurers and insolv ency practitioners into
cost, timing, perf ormance and other risks inv olv ed
in the construction and operation of buildings and
other assets.
Furthermore, we capitalise on the technical strength
of our engineering serv ices team combined with our
team’s appreciation of f inancial institute concerns to
produce an initial Technical Adv isors report for a
wide range of energy generation projects – both
renewables and traditional.
Where we operate in an international context, we
often offer additional f orms of analy sis such as
global sourcing strategies, contingency v olatility
modelling and currency stress testing.
Monthly Reporting
Once engaged into a monthly monitoring role, our
sy stems and procedures ensure that diligence is
maintained and consistent. The f unders can be
assured that the cost and time parameters are
being tracked and that the position of the
dev elopment is up to date.
At any one time, our cash f low tracking tool can
identify:
• what the cost and time to complete is,
• the v alue of any outstanding v ariations,
• the probability of any other v ariations arising,
• the impact of macro economic conditions,
• the env elope within which the deal is operating
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
30
3.1_CLIENTS & EXPERIENCE
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.
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.
31
Low Carbon Energy Generation & Energy from Waste
DRUMSH ANGIE ENERGY FROM W ASTE
CENTRE, SCOTL AND
Client: Gillespie Inv estment Group
Completion: Feasibility & Planning Stage
Value: Approx. £300 million
Description: 300,000T per annum waste
processing f acility for energy generation.
Role: We are currently adv ising the inv estment
group f or the early f easibility, inceptional planning
and v alue engineering stages of the proposed
energy f rom waste facility in Scotland.
Our primary inv olvement has centered around the
cost viability and opportunities f or capital and
operational sav ings as part of the business case
study for the inv estment.
BIO MASS CHP GASIFICATION POWER PLAN T,
ENGL AND
Client: Conf idential
Completion: Feasibility
Value: Approx. £150 million
Description: 40 MWe Bio mass Gasification Power
house f or energy generation.
Role: Adv ising the inv estment partnership on the
early feasibility, inception planning stages of the
proposed Power Plant and surrounding business
park dev elopment and district Heating & Cooling
inf rastructure and 33MVA utilities inf rastructure
connection.
Cost viability and opportunities on the capital and
operational cost as part of the business case study
f or the Partnership Inv estors.
ENERGY FROM W ASTE PL AN T, UK
Client: CNIM
Completion: 1995
Value: Circa £100 million
Description: The plant was designed to meet the
challenge of modern waste management and
utilised best av ailable technologies, the majority of
which was designed and manuf actured CNIM.
The CNIM proposals demonstrated that an
env ironmentally -f riendly process which produces
electricity f rom household and commercial waste is
the best solution to the specif ic waste management
requirements of Wolv erhampton.
Procurement Route: In packages using a selection
of contracts including ICE, MF/1 and FIDIC.
Role: We prov ided post contract cost management
f or the redev elopment and upgrading of existing
f acilities.
32
RACKHEATH ECO-COMMUNITY, NORFOLK
Client: Barratt Strategic and Building Partnerships
Completion: Concept / Feasibility stage
Value: Approx. £200 million
Description: On site renewable energy from a
Biomass Gasif ication CHP plant of 40MWe f or 5000
houses. Including site district heating and off site
utilities inf rastructure connection for 33Mv a supply .
Role: Davis Langdon are currently adv ising the
dev eloper partnership on the early f easibility stages
of the proposed Power Plant as part of a Eco Town
dev elopment. Our inv olv ement is prov iding cost
v iability and opportunities on the capital and
operational cost as part of the business case study
f or the dev eloper Partnership Inv estors.
Outline Tax/Grants Strategy with potential tax
sav ings f or the lif e time of the scheme; Analysis of
Potential Dev elopment energy and heat usage;
Negotiations and f easibility studies into the utilities
inf rastructure and grid networks connections.
BIOMASS F ACILITY, NORWICH
Client: Univ ersity of East Anglia
Completion: 2009
Value: £2.2 million with ov erall £8 million budget
Description: Construction of a new Biomass f acility
to serv e the Univ ersity campus in Norwich. The
highly insulated building is approx 1,100m² with an
operational height of 12m tall.
Role: Cost Management and Contract
Administrator serv ices.
Low Carbon Energy Generation & Energy from Waste
BIODIESEL PROCESSING PLANT
Client: Bio f uels Corporation
Location: Seal Sands, Middlesbrough, Lancashire
Background: The plant was constructed during
2005 to 2006, being officially opened by the then
Prime Minister, Tony Blair, in June 2006. The
f acility has a capacity to produce 250,000 tonnes of
bio diesel annually from renewable v egetable oils;
making it the largest such plant in Europe.
The Project: The plant uses cutting edge
technology to process the v egetable oils into bio
diesel and other usef ul by products. It is located
adjacent to a deep sea port to allow easy access for
the imported oils and also f or the export of the bio
diesel. The capital cost of dev eloping the site was
approximately £50 million.
Tax relief has been identif ied in the f orm of plant
and machinery allowances and industrial building
allowances.
33
ELEAN D ATA CENTRE AND ECO VILLAGE –
CAMBRIDGE
Client: BNB Dev elopments
The philosophy of the Elean Data Campus is to
prov ide world-class data centre facilities in a
discrete rural setting, using energy -eff icient
techniques to deliv er low running costs, supported
by a 400-home Eco Village which would be heated
by the waste energy f rom the Campus. Plans for
the Eco Village are currently being discussed with
East Cambridge District Council.
The six data centre buildings will be powered f rom
multiple redundant sources, principally f rom the
adjacent 38MW straw-burning combined heat and
power plant, deliv ering demonstrable energy
conserv ation. The plant will only use 100% carbon-
neutral waste as a power source, reducing its
env ironmental impact and further establishing its
sustainability credentials.
The waste heat f rom the plant will be av ailable as
an energy source f or the Eco Village to heat the
homes and also to cool the data centres through
absorption cooling.
The absorption chillers operate through a simple
heat exchange process using super-heated lithium
bromide, which would be energised using the off -
take heat f rom the power station, which consumes
almost no new energy .
Dav is Langdon are adv ising BNB Dev elopments in
all commercial aspects associated with all incoming
utility serv ices, negotiations f or the heat and power
connections to the adjacent straw burning power
station, all on-site energy distribution serv ices whilst
also working with the dev elopment team to
establish energy rev enues and tariffs.
Power Transmission
KING’S CROSS DEVELOPMENT, LONDON
Client: Argent
Dav is Langdon not only prov ide cost planning and
commercial management and procurement f or the
site wide inf rastructure serv ices to this major city
centre redev elopment project but also prov ide staff
on secondment to Argent to assist in the
commercial negotiations f or the procurement of an
ESCo partner f or the dev elopment.
The roles encompass all aspects of the utility
serv ices including major off-site reinf orcement
measures, on site primary substation coupled with a
secondary substation distribution network, gas and
water reinf orcement, on-site energy centre utilising
sev eral renewable energy sources, on-site heat
distribution, water distribution and communications
duct networks.
34
NOTTINGH AM EASTSIDE
Client: Eastside & City Dev elopments
Regeneration of 35 acres of central Nottingham to
f orm a new mixed use dev elopment comprising
residential, commercial, retail, leisure, Parkland and
New Canal area’s.
Planned Utility Serv ices:
Extension to an existing waste to heat energy
centre (CHP) to prov ide renewable on site
electricity, heating mains and chilled water serv ices.
Full utility serv ices distribution network on the site to
prov ide serv iced dev elopment plots for f uture
independent dev elopment.
Dav is Langdon’s role included Master planning cost
planning, procurement negotiation, rev enue stream
assessment and capital cost comparison
calculations.
STR ATFORD CITY, LONDON
Client: Westf ield Shopping Towns
Dav is Langdon prov ide resource on full time
secondment to Westf ield Ltd. We prov ide all
commercial leadership in the procurement of the
utility serv ices to the dev elopment, which will
ultimately be Europe’s largest shopping centre
when completed. The dev elopment includes
commercial and residential aspects too. Part of the
dev elopment will f orm an element of the Oly mpic
v illage f or the period of the 2012 games.
The utilities scope includes serv ices to the site,
large scale serv ices div ersions, two large on site
energy centres, on-site utility serv ices distribution
including district heating main pipework and
management and procurement of an ESCo for the
entire dev elopment.
A f urther appointment on the project is f or tariff and
rev enue modelling along with metering and billing
strategy analysis.
WHITE CITY (INFRASTRUCTURE &
REDEVELOPMEN T)
Site clearance including the relocation of a major
London Underground depot f ollowed by the
f ormation of a new shopping centre, cinema, leisure
and key worker housing.
Servives Installed:
Underground Tra in Sidings Relocation,Serv ices
Div ersions, Utility Inf rastructure, Site Wide M&E
Serv ices
Our role was expanded to include f inancial
modelling of utility tariff and rev enue opportunities
f or on site distributed energy.
Power Transmission
37
4.1_WHO TO CALL
When you require our services or if simply wish to discuss with us your
options, you can rely on the national coverage and local delivery from a
close network of key leaders.
Chris Trew – Power Transmission
Tel: +44 (0) 20 7061 7518
Jon Dedman – Head of Energy
Tel: +44 (0) 20 7061 7000Matthew Hicks – Energy from Waste & Low
Carbon Energy Generation
Tel: +44 (0) 1733 362 000
Neal Kalita - Banking & Finance
Tel: +44 (0)20 7061 7913
We hope that we have been able to communicate to you our capability, knowledge and
experience, both as a team and as an organisation. We embody our core val ues and
seek to bring them to bear on ever y commissi on: C ollabor ati on, Integrity and
Innovati on.
We also hope that you have found our pr esentation, clear, concise and r elevant to your
needs.
Should you wish to contac t us for further infor mation or to discuss a potential pr ojec t,
please contact M atthew Hicks on the details bel ow.
Matthew Hicks
Address details
Dav is Langdon LLP
Clarence House
Minerv a Business Park
Ly nchwood
Peterborough
PE2 6FT
Tel: +44 (0) 1733 362 000
Fax: +44 (0) 1733 230 875
Mob: +44 (0) 7930 931674
Email: matthew.hicks@dav islangdon.com
Cost Management | Project Management | Program Management | Banking Tax & Finance | Building Surveying | CDM-C | Design Project Management
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