PROJECT MANAGEMENT

FAST TRACK CONSTRUCTION OF

PROJECTS

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Presentation Outline . . . . . . .

Simhadri St.I learnings – some of the key focus

areas & drivers
Fast track construction imperatives
Need for win-win partnerships
Integrated Project scheduling & monitoring
Paradigm shift in the project construction

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Simhadri St.I Learnings:
• First coastal, coal fired thermal power project of NTPC
• Has set new bench mark for 500MW Green field projects
by commissioning first unit within 39 months.
Key Success Factors
1. Packaging Concept :

Reduction in Contract Packages to 12 (presently 33).

Main plant turnkey contract to BHEL incl. civil works
executed by M/s Simplex.

Less interface issues & improved coordination due to
less no. of agencies.
2. Timely availability of Land & Site Leveling Works.
3. Timely availability of supplies.
4. Matching manpower from NTPC & BHEL
5. Resourceful contracting agencies.
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Simhadri St.I Learnings …. Contd…:
• Dedicated 33kv/11kv Construction Power supply has been
established by 2nd month after Main Plant Contract award
date.
• Approach road from National Highway to project site
strengthened.
• Stand by arrangement for power supply has been
arranged by agencies by providing DG sets.
• Site leveling works by BHEL:
 More than 89 Lac Cu. Mtrs of earth work involved in
the site leveling completed .
 BHEL engaged 5 separate agencies for site leveling
to meet the completion target.
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Simhadri St.I Learnings …. Contd…:
• Prioritizing and sequencing of erection activities
with commissioning requirements in the hind-
sight.
• Strong state government support with regard to IR
issues and wage issues.

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 Fast track construction
imperatives
• Departure from traditional construction of
working in series.
Loading Excavation drg Foundation drg
details release release

Construction

• Concurrent & parallel working

 Standardization– need of the hour
Loading details
Saving in construction time
Foundation drg release

Construction

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 Fast track construction
imperatives
Streamlining the Award process:

• Simultaneous award of Main plant eqpmt package

& Civil works package.
 For Simhadri St.II the gap is 5 months.

• Effect of award delays on L2 schedules – not

matching with L1 commissioning schedules
 For Ex. Simhadri St.II NDCT & Station piping
pkgs.

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 Fast track construction
imperatives
• Creation of Multi Disciplinary Taskforce – Engg, CS, CMG & Site
 For speedy implementation of project specific issues
 Empowered TF
 For speedy decision making in times of ambiguities
in the scope/ contract conditions
 Reporting to RED
• Payment issues
 timely cash flows to the agencies – sub agencies
 timely submission of Statutory compliances by agencies
 clear guidelines – Central or State wages to labour
 coverage under Workmen’s compensation act Vs
ESI act/Factories Act to be clearly brought out.
 BOCW act for brown field expansion – cess duties
coverage in the contracts
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 Fast track construction
imperatives
Steel & Cement Procurement Issues :

• Steel procurement –
 Amendment of Procurement clauses 7A
 Waival of EMD clause for Notified steel
manufacturers
 Approving more SAIL conversion agents
• Cement procurement –
 DOP revisions to facilitate site level approvals.
 PPC cement – product available in the market
doesn’t match Engg. Specs.
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 Fast track construction
imperatives
Supplies delays/ expediting:
 CEG groups should transmit information on mfg
status of critical components
 Focus on Haridwar supplies
 Trichy / Ranipet supplies:

Approving more AD vendors

Reviewing our Quality insp norms. – BHEL engaging
3rd party inspector approved by NTPC for AD vendor
items.

Manpower Augmentation :
 Requirement of Middle level executives in the Project
area.
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 Need for win-win
partnerships
• NTPC should have MOU/ rate contract with
 reputed Civil agencies - (best practices of
DMRC)
 Especially for Ash dyke construction &
subsequent raisings
 Cement companies
 other notified Steel manufacturers

• Incentives for best effort schedules / ahead of L2

schedules
 For some packages we have stage wise LD clauses
 New tariff measures reward early completion of
projects
 For employees also…
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 Integrated Project scheduling
& monitoring

Contractual L2 schedules should be linked with
resource mobilization.

Integration of drg release schedule – matching
with L2 & site conditions

Template for 500MW project execution – based
on actual project execution should be developed.

Web based project monitoring with links to Engg
drg. release process & supplies

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 Paradigm shift in the project
construction
• To go for turnkey construction in the packages -
 Civil works + Equipment supply/erection &
commissioning.
 Admin building should be part of Main plant
&OS civil works pkg.
• Structural steel fabrication can be outsourced
 Concept of pre fabrication
• Providing common batching plant –
 By outsourcing

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 Paradigm shift in the project
construction
• Hiring of high capacity/medium cap cranes
by NTPC
Initial days NTPC owned & provided on chargeable
basis smaller cap. cranes
Need for supplementing the
resources of the contractor

As construction industry matured

Present day – cranes scarcity
– this input was kept in the contractor’s
& more constr. sites
scope
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 Paradigm shift in the project
construction
• Cranes hiring :
• CC level rate contract for diff. cranes on a
global lvl.
• Concerned project to utilise the cranes on
need basis.
• NTPC owned cranes :
• A pool of diff. capacity cranes
 Sub-committee constituted to arrive at the
modalities.
Views of the house sought on the
subject
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 SIMAHDRI ST.I
CORPORATE AWARDED PACKAGES
1. MAIN PLANT  BHEL
2. COAL HANDLING PLANT  L&T
3. CW SYSTEM  KBL
4. MAKEUP WATER SYSTEM  HSCL
5. COOLING TOWERS  NBCC
6. ASH DYKE  BC BIYANI
7. RAILWAY SIDING  IRCON
8. CHIMNEY  NBCC
9. WATER TREATMENT PLANT  TRIVENI ENGG
10. DM PLANT  DRIPLEX
11. EFFLUENT TREATMENT PLANT  HDOL
12. LOCOMOTIVE  DLW

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 AFTER LAND DEVELOPMENT

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 SG#3 01.11.2008

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 SG#3 WELDED BEAM BET CGs
‘A’ & ‘B’ 01.11.2008

Derrick for lifting WBs & RBs

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 U#4 CG-B LIFTING

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 Providing Erection/Construction
Machinery to Contractors by NTPC
• 2nd Strategic Management Group (SMG) meeting
on 30.05.2009
• Issue of Executing the Projects within Contractual
Schedule
 Shortage of high capacity Erection/ Construction
Machinery such as cranes
• Decision to purchase of 6 nos. High Capacity
crawler Cranes by NTPC was taken.
• Sub-group constituted to look into modalities of
issue of cranes to contractors.

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 Providing Erection/Construction
Machinery to Contractors by NTPC
• The present tender is for 6 cranes as per the
details given below
Type A – 2 Nos Type B – 4 nos
• Barh II • Barh I
• Vindhyachal IV • Bongaigaon
• Min. 130MT below hook
with min. clear height of • Mauda
110 M under hook
• AMC for a period of 5
• Rihand III
years including supply of • Min. 76MT below hook
standard spares with min. clear height of
72M under hook
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 Providing Erection/Construction
Machinery to Contractors by NTPC
• Sub-Group :
– GM(I/C), Simhadri – Head
– GM, Dadri - Member
– GM , Korba - Member
– AGM(F) EOC, CC - Member

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 Providing Erection/Construction
Machinery to Contractors by NTPC
• Terms of reference for the sub-group:
 Issues in providing as a standby crane on hire
charge basis to agencies as & when required.
 Issues in providing these cranes to the agency
at pre-determined charges or
 on free of cost basis to be mentioned in tender
conditions.
 Philosophy for arriving at the hire charges
 Any other point relevant to the issue.

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 Providing Erection/Construction
Machinery to Contractors by NTPC
Issues related to providing 1. To be provided as and when
standby crane, on hire required on chargeable basis
or in case of failures of
charge basis: Agency’s Crane.
 Fixing of hire charges:
2. For fixing of Hire charges we
 Providing Mechanic Cum may consider market rates as
Operator and helper
present method of fixing hire
 Providing Diesel & other charges is very stringent and
consumables
may not attract agencies to
hire NTPC cranes.
3. Diesel shall be in the scope of
agency.
4. Deployment of OEM Trained
Operator through a contractor
like UPL with wages matching
the best in the industry.

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 Providing Erection/Construction
Machinery to Contractors by NTPC
Issues related to Not feasible for already
providing standby crane, awarded contracts.
on free cost basis: Throws more complex
Providing Mechanic Cum issues and disputes and
Operator and helper: hence not recommended.
Providing Diesel & other
consumables

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 Providing Erection/Construction
Machinery to Contractors by NTPC
• Issue of De-mobilisation, transportation &
assembly:
 Job contract on expert agencies.
 Training few NTPC executives for over-seeing.
 Booking of cost on case to case basis.
 Space identification for parking of knocked down
sub-assemblies.
 Hiring of small cranes for disassembly / assembly
• Issue of Asset Capitalisation :
 Corporate level.

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 Simhadri II-
overview of corporate packages
• No. of corporate packages -29 no.’s

• No. of corporate packages scheduled for award in FY07-08 as

per MNW : 28 no.’s

• No. of packages awarded in 07-08 : 19 no.’s

• No. of pacakges awarded in 08-09 : 8 No’s
• No. of pacakges awarded in 09-10 : 1 No
• No. of Packages Awarded till date : 28 nos

• Award is delayed by more than two months : 18 no.’s

• Award is delayed by more than Six months : 8 no.’s

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 Stage II- Corporate Packages award status

Sl.No Package name MNW Actual Remarks

award dt. award dt.
1 Main Plant SG with ESP 21.03.07 26.3.07
2 Main plant TG 23.04.07 30.3.07
3 Main plant & Offsites area 30.06.07 01.08.07 One month delay
civil works (ERA)
4 Coal Handling plant(L&T) 30.09.07 15.10.07
5 CW & Make up water 25.08.07 03.10.07 One month delay
system equipment package
(WPIL)
6 DM plant & CW treatment 30.09.07 17.10.07
(Driplex)
7 Chimney & Chimney 30.07.07 26.10.07 Three months
elevators (Gammon) delay

8 Power Transformer 30.10.07 30.11.07 One month

(Crompton Greaves) delay
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 Stage II- Corporate Packages award status

Sl.No Package name MNW Actual Remarks

award dt. award dt.
9 LT switchgear & LT bus 20.11.07 17.12.07 One month
ducts (GE) delay
10 Ash Handling 30-10-07 19.12.07 One and half
system(Indure) month delay
11 Water pre-treatment & 16-08-07 08.01.2008 Four and half
ETP(Driplex) months delay
12 Gen. Bus duct & associated 25-11-07 02.01.2008 One month
equipment (C&S)) delay

13 33Kv,11KV & 3.3 KV Switch 15-11-07 15-01-08 Two months

gears (Bids opened on 12.10.07) delay
14 Consultancy 28-03-07 31-01-08 10 months
delay
15 Outdoor transformers 28-12-07 22-02-08

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 Stage II- Corporate Packages award status

Sl.no Package name MNW Actual Remarks

LOA dt. LOA Dt

16 Ventilation 30-12-07 31.03.08 3 month delay

17 Air conditioning 29-12-07 28.05.08 5 months delay

18 Fire detection & protection 30-11-07 31.03.08 4 months delay

system

19 Condensate polishing unit 30-03-08 31.08.08 Five months

delay
20 Instrument cable 15-01-08 30.06.08 Related to award
of Station C&I(5
months delay)
21 Railway siding 05-12-07 31.08.08 8 month delay

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 Corporate Packages - Award status

Sl.no Package name MNW LOA dt. Actual LOA Remarks

Dt
22 Electrical equipment Supply 30-12-07 31.03.08 3 month delay
& erection
23 Station C&I 30.05.07 23.05.08 12 months delay

24 400 Kv switch yard) 15-11-07 14.05.08 06 months delay

25 Station Piping 30.11.07 25.05.09 17 months delay

26 Ash Dyke Package 30.09.07 05.09.08 11 months delay

27 CW & MU civil pkg. 30.08.07 31.03.08 7 months delay

28 NDCT 30.10.07 06.05.08 7 months delay

29 Shunt Reactor Not yet awarded
NIT dt-23.02.09
OBD: 16.04.09

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