Workshop on Contracts Management, Vientiane Laos
The Asia Region is unique in terms of water resources and hydropower development. It has some of the world’s largest number of dams and hydro power plants, as well as many thousands of small-scale hydro and irrigation schemes in rural areas. The region’s remaining potential is vast and can offer enormous opportunities to develop clean renewable energy, while using the associated water storage to bring other benefits to communities. Advancing sustainable hydropower and multipurpose water infrastructure in Asia will help the region develop further and build resilience to climate change.
However, water infrastructure in Asia faces some tough challenges associated with natural phenomena such as extreme floods, large magnitude earthquakes, challenging site conditions, and sedimentation issues. Designing hydropower projects well, helps guard against these risks and ensures that the large upfront investment will deliver benefits for generations to come.
One of the common challenges hydropower project managers face is managing project contracts effectively. Good contract management is key to mitigation measures; however, hydropower projects are often criticized for time and cost overruns. Understanding the specificities of contract management will help ensure project success in meeting delivery deadlines and staying within estimated budgets.
The World Bank Group is assisting the growing hydropower sectors in Asia and the Pacific. Since the International Federation of Consulting Engineers (FIDIC) Conditions of Contract are being increasingly used by the hydropower construction industry in the region, the Bank invests in training key stakeholders in the practical use of the FIDIC Conditions of Contract.
With support from the Asia Sustainable and Alternative Energy Program (ASTAE), the Bank organized a two-day training workshop in Vientiane, Laos on February 28 - 29, 2016 with the aim to help build the capacity and confidence of engineers and managers working with these frameworks. The workshop was held before the large Hydro Asia Conference organized by Aqua Media International to allow participants to attend both.
More than 30 participants attended the workshop representing private or public enterprises, employers, consultants or contractors from all over the region, specifically from World Bank client countries such as Afghanistan, Bhutan, Cambodia, India, Indonesia, Laos, Myanmar, Nepal, Pakistan, Papua New Guinea, Solomon Islands, Sri Lanka and Vietnam.
Lectures were delivered by Zoltan Zahonyi, FIDIC, Dietmar Scheel and William Dobbs of MWH Global (USA), all renowned experts in FIDIC with solid experience in contracts management in hydropower and other major river and marine projects. The workshop followed a participatory approach during the in-class training sessions. The rich agenda focused on:
i. Comprehensive explanation of the Practical Use of Conditions of Contract for Construction for Building and Engineering Works designed by the Employer (First Ed. 1999, Red Book) with practical real life case studies.
ii. Explanation of the Construction Contract MDB Harmonized Ed (Version 3: June 2010 Harmonized Red Book).
iii. A brief introduction to other FIDIC forms of contract (Yellow and Silver Books, others) and likely forthcoming revisions to them.
iv. Introduction to good practice of contracts and project management, claims and dispute resolutions and settlements.
v. Handling of issues that are unique to hydropower and other water mega-projects, and how they may differ from other types of construction.
The workshop was an opportunity for participants to engage in interactive discussions, not only with the presenters but also among themselves and learn from each other’s experience. Based on workshop evaluations, the majority of participants felt that the training has helped build their capacity in this area and that they will be able to apply the knowledge gained in their everyday work.
- Hydro Asia 2016: Training Course on Contracts Management
- Water Resources and Hydropower Developent in Asia
- Adopting FIDIC Conditions for Hydropower Contstructions: Top 10 Issues
- Risk Management Principles in Hydropower Tunnelling
- FIDIC Conditions of Contract in the Hydropower Construction Industry Session 1
- FIDIC Conditions of Contract in the Hydropower Construction Industry Session 2
- FIDIC Conditions of Contract in the Hydropower Construction Industry Session 3
- FIDIC Conditions of Contract in the Hydropower Construction Industry Session 4
- Where Do I Start? Session 5
- FIDIC Conditions of Contract in the Hydropower Construction Industry Session 5
- Dams & Hydro Specific Considerations Session 7
- Contracts Management in Hydrolectric Projects: An Interative Case Study of a Differing Site Condition Session 8
- Contracts Administration Session 9