How to approach complex remediation projects

Mid-Atlantic Contaminated Sediment/Soils Symposium
March 24, 2010
Liberty Harbor Restaurant, Jersey City, NJ
How to approach complex remediation projects:
some European examples
Guy Pomphrey – Area Manager USA
Stany Pensaert – Research & Development Manager
Procuring a Complex Remediation Project
• Procurement of Complex Remediation Projects is
often not given the attention it deserves
• Badly thought through procurement can lead to:
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Unsafe execution
Delays
Poor workmanship
Cost overruns
• These outcomes can of course have far reaching
consequences for you, your organisation and even
the wider community
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Procuring a Complex Remediation Project
Corby children win High Court birth defects claim
“A group of 18 young people born with deformed hands and
feet after their mothers were allegedly exposed to toxic
materials before their birth have won a group action lawsuit
against Corby Borough Council.”
Daily Telegraph Newspaper UK 29th July 2009
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Content of this presentation
• Contractor selection
• New contract forms
• Public Liaison
• Case Studies
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Contractor selection
Preparing bids is costly – do not waste bidders’ time and money:
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Preselect a shortlist of no more than 5 companies
Only select companies with proven track record
Try to use companies with experience and technologies available inhouse –
too much subcontracting can lead to conflicts and lack of control
Provide sufficient information – obvious isn’t it?
Allow sufficient time for a meaningful proposal
However money isn’t everything!
Do not use price as the only factor in assessing proposals at least
give the technical proposal a similar weighting or higher – 60% is
common
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Form of Contract
The more risk you pass to the contractor the higher the average
outcome price
• Lump Sum Fixed Price – All risk on contractor and he will price
accordingly unless he is desperate – then beware!
• Remeasurable priced bill of quantities – quantity risk taken by
client
• Cost plus fee – all risk on client
• Cost plus fee with target price and risk reward sharing – our
recommendation – is the best approach
Involve the contractor as early as possible in the remediation
design – with his experience he is the best person to optimise the
process
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NEC Engineering and Construction
Contract
Design of a new contract form:
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Simplified and clear structure to:
• Framework for compensation events, avoiding open-ended claim situations.
• Minimise incidence of disputes
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Incentivisation:
• Foresighted and cooperative management of the interactions between
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parties: collaborative employers-designers-contractors
Reduced risk to employer (cost and time overruns, poor performance)
Reduced risk to contractors (losses)
Mechanism: unforeseen events: “early warning system” and compensation
events: contractor prices various options to the project manager at the time
the problem is identified => certainty for cost implications and planning
implications
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Public Liaison
Get the public onboard – what you are doing is good!
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Regular community liaison meetings
Regular newsletters/press releases
Good quality up to date website
Contact person and appropriate respond if any complaints
Visitor Centre including viewing
Jobs for locals
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CASE STUDY 1
Avenue Coking Works Site - United Kingdom
Case Study 1 – The Avenue Coking
Works, Chesterfield UK
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Former coking works, located in
Chesterfield (UK)
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Operated from 1956 to 1992
• Production of smokeless fuels
• Procession of by-products of
coal carbonisation (sulphuric
acid, ammonium sulphate, pure
benzene and toluene, xylene,
naphthalene and other acids
and organic compounds)
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Heavy contamination of site and
adjacent river “Rother”
• Surface of 98 ha around the
former coking works: saturation
with hydrocarbons and tar
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
PLANT AREA
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
NEC Target Price Contract: three Stages; Bid, design and execute.
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Stage 1 Bid - Design was not fixed at time of RFP
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Contractors priced based on a best guess quantity of contaminated soil and sludge taking into account
the Client’s assumptions.
Contractors had to select appropriate remediation design
Bids were assessed 60% technical quality
Stage 2 Design - Successful bidder executed further site investigation and process
design in order to establish the work scope and a target price in negotiation with Client.
Risks to be covered by further site investigation and process design:
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Impact of lagoons and waste tip
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Depth of contamination
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Preliminary remediation criteria
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Complex pollutant mix and uncertainty on remediation technologies for soil and groundwater.
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Final landscaping profiles
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Planning applications
Specialised joint venture consortium: DEC – SITA Remediation – Volker Stevin
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
NEC Target Price Contract: three Stages; Bid, design and execute.
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Stage 3 Execution - Payment of cost plus fees
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“Open book” accounting
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Contractor and client gain from savings
• Savings split 50% Client – 50% Contractor
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Client has small cost overrun risk
• Cost overrun up to 10% of target Client pays 50%
• Further cost overruns all paid by Contractor’s JV
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
Stage 1: Design phase
“Pragmatical” site investigation.
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
Stage 1: Design phase
Process design
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Case Study 1 – The Avenue Coking
Works, Chesterfield UK
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2.6 million yd³ of soils to be excavated
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Logistical challenge: synchronisation excavations –
stockpiling – treatment – reuse of various qualities
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Treatment of the contaminated soil with mobile
treatment plants:
• Thermal desorption treatment: 350 000 yd³
• Separation and soil washing: 420 000 yd³
• Bioremediation: 100 000 yd³
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Treatment of the contaminated groundwater at 7500
gallons/h with a bespoke water treatment plant:
• Aerobic biologic degradation
• Chemical oxidation
• Adsorption
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CASE STUDY 2
TOTAL Site - Belgium
Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Lagoon I:
Liquid tars
Lagoon II: Liquid-Paste
tars and Filtercells
Lagoon III: Solid and
Paste tars, Filtercells
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Some boundary conditions for the remediation design:
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High potential SO2-emissions from acid tars
Live piperack at the dykes of the lagoons
High pressure hydrogen and natural gas along the lagoons
Approximity of village at 100 meter
3 operational petrochemical plants within a radius of 500 m
Last but not least…
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Result driven contract
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Stage 1 Bid - Tendering based on preliminary design by Total
and Haskoning: Stabilisation/Solidification and on-site storage
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Limited knowledge on variability and composition of materials in the lagoons.
Limited knowledge on risks: UXO, sulphur dioxide emissions,…
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Stage 2 Lot A Design – Further sampling in order to finetune
process design and manage risks
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Stage 3 Lot B Full Scale Performance validation
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Stage 4 Lot C Full scale works
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Design phase: lot A contract:
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Thorough sampling of the acid tars, surface water,
groundwater,…
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Bench-scale testing for optimal
Stabilisation/Solidification mix formulation for acid tar
treatment.
Full-scale pilot testing on small amounts of lagoon
materials for choice of equipment.
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Bench-scale testing of various water treatment
options.
Pilot testing water treatment.
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Assessment of emissions
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Historical research on UXO
Design of
acid tar treatment
process and plant
Design of
Water treatment
process and plant
Design of
Excavation methodology and
mitigation measures
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 2: Lot A Design
Process design
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 3: Lot B Full scale performance validation
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 4: Lot C Full scale works – April 2006
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 4: Lot C Full scale works – May 2007
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 4: Lot C Full scale works – March 2009
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Case Study 2: Acid Tar Total – Belgium
Design and Build contract
Stage 4: Lot C Full scale works – September 2009
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Conclusions
• Complex remediations projects are a Pandora’s box: a good
design however results in a flexible and safe working method.
• The best design is made by an expert group gathering various
disciplines and expertise. “Hands-on” expertise is important.
• Contract forms do exist to formalize a flexible, cost-efficient, and
optimal cooperation between
CCC = Client + Consultant + Contractor
CCC = Consolidated Competence Centre
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Thanks for your attention !
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