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careful planning, closely managing and
distributing project risk.
“Our contract agreement established
a foundation for managing risks and to
assign risk to the party best suited to manage the risk,” said Steve Duling, program
director for Springs Utilities. “When planning the project, we had discussions on
how and when risks would transfer from
one party to another.”
TACKLING RISK WITH
The Unit 1 Nixon scrubber project would
retrofit its 225-MW coal-fired electric gen-
erating unit with a flue gas desulfurization
system and a activated carbon injection
(ACI) system to control mercury emissions.
Along with needing to comply with Colo-
rado’s haze control plan, the other emis-
sions issue was the EPA’s sulfur compliance
deadline of Dec. 31, 2017. The new equip-
ment is designed to reduce emissions to
less than 0.085 lbs/MMBtu for sulfur and
less than 0.8 lbs/TBtu for mercury.
Springs Utilities hired Stanley Consultants to serve as their owner’s engineer
providing construction and project oversight. The first task was to generate a performance specification to contract an
engineering, procurement, construction
and commissioning(EPCC) contractor.
Stanley Consultants was also called on
to design new transformers, an isophase
bus duct, a new fire suppression system
and to assist in procuring new ultra-low
The EPCC method of project delivery
came with a guaranteed maximum price
for the installation of the scrubber. While
the EPCC format was followed in principle, the contract in effect could be described as more of a hybrid, where all
parties shared various risks at different
phases of the project. The owner wanted
to place the appropriate execution risk
on the EPCC contractor, cap the owner’s
the project, we had
discussions on how
and when risks would
transfer from one
party to another.”
- Steve Duling, Springs Utilities