Photovoltaic project development will always involve many development modes, such as the most popular PPP mode and EPC mode. In a large number of engineering development models, have you been dizzy? The following Xiaobian combs out for you in detail, those engineering models in the development of photovoltaic projects......
Public-Private Partnership (PPP)
The model of non-governmental participation in public infrastructure construction and public affairs management is collectively referred to as the Public Private Partnership (PPP). Specifically, it refers to a franchise project financing model in which the government and private enterprises form a mutual cooperation relationship based on a certain project. The project company is responsible for financing, construction and operation. The government usually enters into a direct agreement with the financial institution that provides the loan. This agreement is not a guarantee for the project. It is a commitment made by the government to the lending institution. It will pay the relevant fees according to the contract signed between the government and the project company. This agreement enables the project company to obtain loans from financial institutions more smoothly. The project's expected return, assets, and government support will directly affect the number and form of loans. The essence of adopting such a form of financing is that the government will provide the long-term franchise and income rights for private enterprises in exchange for infrastructure construction and efficient operation.
The PPP model is applicable to projects with large investment, long construction period and slow return on capital, including railways, highways, bridges, tunnels and other transportation departments, electricity and gas and other energy sectors as well as telecommunication networks and other communications businesses.
Whether in developed or developing countries, the application of PPP mode is more and more extensive. The key to the success of the project is that the participants and shareholders of the project have clearly understood all risks, requirements, and opportunities of the project before they can fully enjoy the benefits of the PPP model.
advantage
1. The public sector and private enterprises will participate in the demonstration at the initial stage, which will help determine the feasibility of project financing as soon as possible, shorten the previous working period, and save government investment;
2. Risk allocation can be realized at the early stage of the project. At the same time, because the government shares some risks, the risk distribution is more reasonable, and the risks of contractors and investors are reduced, thereby reducing the difficulty of financing;
3. Private companies involved in project financing are involved in the early stage of the project, which is conducive to the introduction of advanced technology and management experience from the very beginning of private enterprises;
4. Both the public sector and the private sector participate in the construction and operation. Both sides can form long-term goals of mutual benefit and provide better services to the society and the public.
5. Integrate all project participants to form a strategic alliance and play a key role in coordinating the different interests and objectives of the parties;
6, the government has a certain degree of control.
Shortcomings
1. For the government, how to determine the cooperation company to increase the difficulty of the government, and in the cooperation to bear certain responsibilities, increase the government's risk burden;
2. The form of organization is more complicated, which increases the difficulty of coordination in management;
3. How to set the project's rate of return may become a controversial issue.
Engineering General Contracting (EPC) Model
EPC project general contracting is Engineering Procurement Construction mode, also called design, purchase, construction integration mode. It means that after the project decision-making stage, from the beginning of the design, a tender is entrusted to an engineering company to perform general contracting for design-purchase-build. Under this model, the engineering company is responsible for the management and control of the progress, cost, quality and safety of the project according to the total price or the adjustable total price stipulated in the contract, and completes the project as agreed in the contract.
EPC has a variety of derivatives and combinations, such as EP+C, E+P+C, EPCm, EPCs, EPCa, etc.
advantage
1. The owner entrusts the project's design, procurement, construction, and start-up services to the project's general contractor. The owner is only responsible for the overall, principled, and objective management and control. The general contractor can better exert his subjective initiative. Can use its advanced management experience to create more benefits for owners and contractors themselves; improve work efficiency and reduce coordination workload;
2, less design changes, shorter duration;
3. As the total price contract is adopted, there is basically no need to pay claims and additional project costs; the final price of the project and the required duration of the project have a greater degree of certainty.
Shortcomings
1. The owner cannot perform full control over the project;
2. The general contractor is responsible for the cost period and quality of the entire project, increasing the risks of the general contractor. The general contractor can obtain more profits in order to reduce the risks. It may reduce the cost by adjusting the design plan and may affect the long-term significance. The quality of
3. Due to the use of a total price contract, the contractor’s flexibility to obtain the owner’s change order and additional fees is minimal.
Project Management Contracting (PMC) model
PMC is Project Management Consultant, which is project management contracting. Refers to the project management contractor on behalf of the owners of the project for the entire process, a full range of project management, including the overall project planning, project definition, project bidding, selection of EPC contractors, and the design, procurement, construction, trial operation Management generally does not directly participate in the specific work of the project design, procurement, construction and commissioning.
The PMC model reflects the separation of the preliminary design and the construction drawing design. The construction drawing design enters into the field of technical competition, except that the preliminary design is completed by the PMC.
advantage
1. It can give full play to the management contractor's professional skills in project management, harmonize and manage project design and construction, and reduce conflicts;
2. It is conducive to the saving of investment in construction projects;
3. This model can optimize the design of the project and can achieve the lowest cost within the lifetime of the project.
4. While ensuring good quality, it is beneficial to the contractor to obtain the right to issue shares or proceeds for the project in the future. The construction period can be shortened. In high-risk areas, the company usually uses the deeds to stabilize the team.
Shortcomings
1. The degree of owner involvement in the project is low, the right to change is limited, and coordination is difficult;
2. The owner's big risk is whether he can choose a high-level project management company.
3. This model is generally applicable to: Large-scale projects with a project investment of over 100 million U.S. dollars; Projects in countries and regions with lack of management experience, the introduction of PMC can ensure the successful completion of the project, and at the same time help these countries and regions improve project management; Projects built by banks or foreign financial institutions, consortium loans, or export credits; large and complex process installations, and large projects that the owners are not familiar with.
Design-Build (DB) Model
That is, Design And Build, also known as Turn-Key-Operate internationally. In China, design-construction general contracting model (Design-Construction). After the principle of the project was determined, the owner selected a company responsible for the design and construction of the project. This method is based on a total price contract when bidding and entering into a contract. The design-build general contractor is responsible for the cost of the entire project. He first selects a consulting and design company for design, and then uses competitive bidding to select subcontractors. Of course, he can use the company's design and construction strength to complete part of the project.
Avoid the contradiction between design and construction, can significantly reduce the cost of the project and shorten the construction period. However, the main concern of the owners is that the project is delivered and used according to the contract, and does not care how the contractor implements it. At the same time, when selecting a contractor, the merits and demerits of the design plan are taken as the main evaluation factors, which can guarantee the owner to obtain high-quality engineering projects.
advantage
1. Work closely with the contractor to complete project planning and acceptance, reducing coordination time and costs;
2. The contractor may incorporate his knowledge, experience, materials, construction methods, structure, price, and market into the design at the initial stage of participation;
3, to help control costs and reduce costs. According to foreign experience, the implementation of DB mode can reduce the average cost by about 10%;
4, is conducive to schedule control and shorten the duration;
5, a single responsibility. Generally speaking, the contract relationship of the construction project is the relationship between the owner and the contractor. The responsibility of the owner is to pay according to the contract. The responsibility of the general contractor is to provide the products required by the owner on time, and the general contractor The entire process of construction bears full responsibility.
Shortcomings
1, the ability to control the final design and details is low;
2. The design of the business has a great influence on the economic efficiency of the project. Under the DB model, the contractor bears greater risks;
3. Quality control mainly depends on the quality of the function description book when the owner tenders, and the level of the general contractor has a great influence on the design quality;
4. Shorter time, lack of specific laws and regulations, no special insurance;
5, the method is complex and less competitive.
Parallel Delivery (DBB) mode
That is, Design-Bid-Build, which is one of the earliest projects in the world and one of the earliest projects. It means that the owner commissions an architect or consulting engineer to carry out the preliminary work (such as conducting opportunity research, feasibility study, etc.), and then design after the project evaluation is approved.
In the design phase, the construction bidding documents are prepared, and then the contractor is selected through bidding; while the subcontracting of individual projects and the procurement of equipment and materials are generally contracted by the contractor and subcontractors and suppliers, and organized and implemented. In the implementation phase of the project, the engineer provided construction management services for the owner. The most prominent feature of this model is that the implementation of the project must be emphasized in accordance with the order of the DBB. Only one phase can be completed before the other phase.
advantage
The advantages are expressed in mature management methods. All parties are familiar with the relevant procedures. Owners are free to choose consulting design personnel. They can control the design requirements. They are free to select engineers. Standard contract texts that are familiar to all parties can be used to facilitate the contract. Management, risk management and reduction of investment.
Shortcomings
1. The project has a long period of time. The owner and the design and construction party sign the contract separately and manage the project by themselves. The management fee is relatively high;
2. Poor construction of the design, the ability of the engineer to control the target of the project is not strong;
3, is not conducive to the division of responsibilities of engineering accidents, due to drawing problems and disputes and more claims. This management model is the most common in the world. All projects based on World Bank, Asian Development Bank loan project and FIDIC contract conditions adopt this model. The "Project legal person responsibility system", "Tender bidding system", "Construction supervision system", and "Contract management system" commonly used in China today basically refer to this traditional model of the World Bank, ADB, and FIDIC.
Construction Management Contract (CM) Model
Construction Management Approach also known as "edge design, construction side" approach. In phased contracting mode or rapid track mode, the CM mode is entrusted by the owner to the CM unit. As a contractor, the conditional “edge design and edge construction†is adopted, focusing on shortening the project cycle, also called the fast path method. That is, Fast Track's production organization method is used for construction management, directly directing construction activities, and to a certain extent affecting design activities, and its contract with the owner usually adopts such a contracting mode of “cost + profitâ€. This way through the construction manager to coordinate the design and construction of the contradiction, so that decision-making open.
It is characterized by a joint team of engineering project managers and engineers entrusted by owners and owners to jointly organize and manage the planning, design, and construction of the project. After completing a part of the sub-item (single item) engineering design, the part will be tendered and issued to a contractor. Without the general contractor, the owner will directly sign the contract with the contractor according to each individual project.
This is a contract management model widely popular in foreign countries in recent years. This model differs from the continuous construction production model in which bidding was completed after all the design drawings of the past were completed.
Two forms of implementation of CM mode: CM unit service, sub-agent type and non-agent type.
1. Agency-type CM ("Agency" CM): Work as an agent for the owner and collect service fees.
2. Risk-type CM ("At-Risk" CM): As a general contractor, it can directly distribute packages, sign contracts directly with subcontractors, and assume the maximum engineering cost GMP for the owners, if the actual engineering costs exceed GMP. , More than part of the CM unit.
advantage
1. In terms of project schedule control, the CM model adopts decentralized contracting and centralized management so that design and construction can be fully overlapped, which will help shorten the construction period;
2. The CM unit's coordination with the designer can reduce the delays caused by the modification of the design;
3. In terms of investment control, through the coordinated design, CM units can also help owners adopt value engineering and other methods to provide reasonable suggestions to the design, so as to tap the potential of saving investment, and can also greatly reduce the design changes in the construction phase. If a CM model with GMP is adopted, the CM unit will assume more direct economic responsibility for the control of the project cost, which can greatly reduce the owner's risk in project cost control;
4. In the aspect of quality control, the combination of design and construction and coordination with each other, and the adoption of new processes and methods in the project will be conducive to the improvement of construction quality; 5) The selection of subcontractors shall be jointly decided by the owners and contractors. It is thus wise.
Shortcomings
1. The requirements for the qualification and reputation of CM managers and their organizations are relatively high;
2. Subcontract tendering may result in higher contracting fees;
3. The CM model generally adopts a "cost plus premium" contract, which requires a relatively high contract model.
Build-operate-transfer (BOT) model
That is Build-Operate-Transfer mode. Refers to the consortium of a country's consortium or investor as a project, obtaining a concession for the construction of a project's infrastructure from a national government, and then independently establishing a project company in conjunction with other parties responsible for the financing, design, and construction of the project. Operating. Throughout the concession period, the project company obtained profits through the operation of the project and used the profits to repay the debt. At the end of the concession period, the entire project was handed over to the host government by the project company at no cost or at a nominal price.
The most important feature of the BOT model is that due to obtaining government permission and support, preferential policies are sometimes obtained and financing channels are broadened. BOOT, BOO, DBOT, BTO, TOT, BRT, BLT, BT, ROO, MOT, BOOST, BOD, DBOM, and FBOOT are all different evolution methods of standard BOT operations, but their basic characteristics are the same, that is, the project company must Get the concession granted by the relevant government department. This model is mainly used for infrastructure projects such as airports, tunnels, power plants, ports, toll roads, telecommunications, water supply, and sewage treatment, which have large investments, long construction periods, and can operate profitably.
advantage
1. It can reduce the government’s sovereign debt and debt service obligations;
2. It is possible to transfer the risks of public organizations to private contractors, so as to avoid public organizations taking full risks of the projects;
3. It can attract foreign investment to support the construction of domestic infrastructure and solve the problem of lack of construction funds in developing countries;
4. BOT projects are usually contracted by foreign companies. This will bring advanced technology and management experience to the country where the project is located. It will not only bring more development opportunities to the contractors in the country, but also promote the integration of the international economy.
Shortcomings
1. Within the concession period, the government will lose control of project ownership and operating rights;
2. There are many parties involved, the structure is complex, the project is too long and the financing cost is high;
3, may lead to a large number of tax losses;
4. It may cause predatory operations of the facility;
5. After the project is completed, there will be a large amount of foreign exchange outflow;
6, risk asymmetry and so on. Although the government has transferred risks such as construction and financing, it has assumed more other responsibilities and risks, such as interest rates and exchange rate risks.
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