Chun Yat Street 132 kV substation, Hong Kong

Chun Yat Street 132 kV substation, Hong Kong
  • location:
    Hong Kong
  • Value:
    170 M
  • Contracts Used:

    ECC option B

  • Start-Finish:
  • Employer:
    CLP Power Hong Kong Ltd
  • Contractor:
    Hip Hing Construction Company Ltd
  • Project Manager:
    Andrew Chan, CLP POWER HK

Chun Yat Street 132 kV substation in the Tseung Kwan O industrial estate was built using the shortest time in CLP's history – 3 years from conception to commissioning. Contractor Hip Hing Construction Co. Ltd. started on site on 1 November 2012 and completed the project on 29 January 2014 without compromising quality, safety or cost.

The substation location was selected adjacent to existing data centres to minimise power loss in transmission process. The design has incorporated various 'data-centre-friendly' features so as to enhance power supply security to these customers.

Delivered using ECC option B

It was the first CLP substation superstructure work being delivered using NEC3 Engineering and Construction Contract (ECC) option B (priced contract with bill of quantities). Thanks to perceived programme risks to the project completion date being captured and mitigated in a timely fashion, the 15 month superstructure works were completed 6 weeks early.

The contract effectively encouraged a collaborative working relationship among all  parties. It also defined clear roles and responsibilities for all parties and let to project team members proactively adhering to time-critical events and notifications.

Stringent programme control was primarily achieved through procedures embedded within the contract. It was the distinct programme control procedures which differentiated this contract from those of conventional contracts, namely early avaibility of programme, transparent and realist programme, and contractual risk-reduction meetings.

Early availability of programme

Submission of the first programme was required within 1 week of signing the contract. The programme needed to be submitted within 1 week for 'acceptance' under the contract, and follow through for monthly submission of programme for acceptance. If it was not accepted, resubmission was to be completed within 2 weeks. Had there been no accepted programme in 1 month, interim payment for the work done within that month would be on hold until the programme was accepted.

To ensure the completion date was achieved, the dates of planned completion and completion date were clearly identified on the programme. The terminal float time between the planned completion and completion date was the early foresight to predict delays and prompt initiation of programme mitigation measures if needed.

Transparent and realistic programme

Critical activities with float time were clearly shown in the monthly accepted programme. The float time was time-risk allowances due to the possible programme downtime in seasonal inclement weather, delays of material delivery, delays of statutory consent and so on. These risks were owned by the contractor and therefore the float was owned by the contractor.

The programme components were more transparent and realistic than conventional contracts, givng CLP a better understaning of project progress. Extended time due to additional works was also included to reflect accurately the planned completion and completion date for programme monitoring.

Contractual risk-reduction meeting

The contract encouraged the contractor to forewarn CLP of any programme and cost risks during the course of construction work. The contract operated well under the collaborative mindset among project team members, helping them to mitigate risks as early as possible.

There were no penalties if the contractor failed to give early warning. However, a penalty was applied if a compensation event was not formally notified to CLP within 8 weeks if that event might have delayed completion. In such a case the contractor would not have been entitled to any extra time and cost.
Monthly risk-reduction meetings were conducted to capture all risks. The effects of these programme risks were then reflected in the monthly accepted programme.

Overall the Chun Yat Street substation projects was a great success and provied the benefits of using NEC3 contracts over conventional contracts.

CLP's Chun Yat Street 132 kV substation was delivered under ECC option B in record time

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