NNB the developer of the Hinkley Point C project is acting as the programme manager splitting the scope into equipment supply and construction contracts, with direct responsibility for project and integration management.
NNB will contract directly with Tier 1 companies who generally subcontract to Tier 2 suppliers who in turn may contract with Tier 3 and 4 companies. NNB’s procurement strategy involved early engagement with the supply chain, selecting preferred contractors with some Tier 1 contractors having been involved on the HPC project for over 6 years prior to receiving a formal contract for their package of the works.
There is a rolling programme of contractor award, mobilisation and delivery with almost £9bn of contracts having been awarded by the end of 2017.
Several UK companies have formed Joint Ventures with French suppliers who have previous experience of working on nuclear projects. Major deals to date include the £2bn civils contract for BYLOR, a joint venture between Bouygues TP and Laing O’Rourke, and the £208m earthworks deal won by a Kier and Bam Nuttall joint venture.
Kier BAM Nuttal JV – The Earthworks package involves the preparation of the site for the Main Civil Contract and includes deep excavations, temporary roads and site utilities, and the construction of the 900 metre long sea wall. Over 4 million cubic metres of material will need to be excavated for the power station.
BYLOR a Bouygues Laing O’Rourke JV – The Main Civils contract will cover the civil construction of the main power station with a value believed to be in excess of £2 billion.
Balfour Beatty – The Marine Works involves the construction of the main cooling water tunnels and associated sea bed structures. Pre-cast components will be fabricated off site in Avonmouth. Three large tunnel boring machines will be used to create the 9 km of tunnels under the Severn Estuary.
Costain - The construction of the c.500 metre temporary jetty, Junction 24 Park & Ride and a freight management centre located near to Junction 23 of the M5. Costain were originally the preferred supplier for the marine works contract but lost out to Balfour Beatty during contract negotiations.
Balfour Beatty Bailey JV - Electrical Installation including main electrical distribution systems, cabling and equipment installation.
Babcock Noell GmbH - design, manufacturing, installation and commissioning of equipment required to process and treat solid low level and intermediate radioactive waste.
Bouygues Energies & Services - design, manufacture and on site installation and commissioning of eight emergency diesel generators.
Bouygues UK - Ancillary Buildings including the Simulator Training Centre, a Public Information Centre and a Warehouse for Areva.
Cavendish Boccard Nuclear JV - Mechanical pipework and equipment installation which are not part of the Areva’s NSSS contract.
ACTAN – JV - A joint Venture between Engie, Axima Tunzini and Doosan Babcock for heating, ventilation and air conditioning.
M+W Group - Contract for the HVAC in the Turbine Hall and Non-classified Galleries and Auxiliary Buildings.
Socea Denys are the contractor responsible for supplying and installing the cooling water infrastructure consisting of CRF pipes that take the sea water into the plant and discharge the heated water back to the sea.
UK Power Networks - The design, construction and commissioning of the construction electrical supplies network, includeing the provision of transformers and 20 km of cabling.
Veolia – The design, construction and commissioning of water demineralisation equipment.
Other construction contract awards include Hochtief for the refurbishment of Combwich Wharf, Premier Modular for Temporary Construction offices, and Laing O'Rourke for the Worker campus accommodation.
In addition to the construction contracts, supplier contracts for the major components have been awarded, the largest of these include:
Areva – The Nuclear Steam Supply System (NSSS) contract covers the supply, installation and commissioning of the nuclear reactor and primary circuit components, including the reactor pressure vessel, steam generators, pressuriser, coolant lines and pumps, all the safety support systems, the back-up systems and the control and instrumentation system needed to safely operate the power station.
Alstom Power – The Turbine Hall contract covers the supply, installation and commissioning of the conventional plant consisting of the turbines, condensers, heat exchangers, steam systems, electrical generators and water treatment plants that use the steam to generate the power supplied to the grid.
GE-Power – The design, manufacture, erection and commissioning of the turbine, the generator and feedwater plant and auxiliary systems.
ABB UK - The design, manufacture, delivery, installation, testing, and pre-commissioning of the main power transmission systems for both reactor units believed to be a valued at £99m.
Nuvia – The design, manufacture, installation and commissioning of the on line liquid sampling systems.
Ovivo - Intake water filtration systems, supply of the fish recovery systems and the design, manufacture and installation of corrosion / cathodic protection equipment for immersed mechanical equipment in the pumphouses.
Rolls-Royce - design, manufacture, installation and commissioning of four station black out diesel generators and the heat exchangers.
Rolls-Royce / Nuvia JV - Systems for coolant storage and waste processing of reactor coolant
S&B Nuclear – a Boulting Group / SNEF JV for the supply of a variety of instrumentation equipment.
Schneider Electric Ltd UK - supply of medium-voltage PIX switchgear.
SPX Clyde Union Pumps - Main pumps for feedwater system.
Weir - Pumps for the cooling water system.
There is a stated intent to use UK-sourced materials and supply chain companies wherever possible and NNB have advised that they remain on track to meet the 64% UK supply contribution. In line with these commitments six local consortia have been created to provide a range of services from catering and accommodation, to transportation and facilities management, and the provision of utilities. A Hinkley Professional Services Group has also been established to provide support to the supply chain in the areas of Human Resources (recruitment, training and employee retention), Legal, Accounting and Finance, Project Management and support to companies who are new to working in the nuclear sector.
The local consortia include:
Somerset Passenger Solutions - The venture is a 50:50 joint venture between bus operator First Bus and Weston-super-Mare based family business, Crosville Motor Services Ltd.
Somerset Larder - Six Somerset food producers coming together for the HPC catering contract.
COMA - Wessex Water, Hydroline Solutions, RM Utilities, MMES and Boultings have joined together to deliver the construction utilities package covering the maintenance, upkeep and modification of the site wide temporary construction utility networks installed by the Earthworks Contractor.
SIA - An Alliance between Skanska Infrastructure, RK Bell Ltd & Forest Traffic Management Ltd with responsibility for infrastructure operations and maintenance of temporary and permanent road networks, traffic operations & management, minor building and civil engineering work and other contracts for highway improvements including the M5 Junction 23 and Cannington Park & Ride.
HOST - Consisting of Castle Management Ltd Paragon Brooking Ruse & Co and John West (Contractors) Ltd responsible for management of the Workers' campus accommodation.
A2O People produce a regular series of blogs designed to keep people informed about the Construction Industry, the UK Energy Sector, the UK Nuclear Sector, the Hinkley Point C project, and HR / Employment Law issues impacting the Construction sector.
Shane Keaney is a director of A2O People a Recruitment and People Consultancy specialising in the Nuclear and Energy Construction sectors. You can learn more about our Recruitment, Business Advisory and Training services on our website www.a2opeople.co.uk, by emailing us at firstname.lastname@example.org or calling 01278 732073.
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