Page 261 - Sustainable On-Site CHP Systems Design, Construction, and Operations

234 C o ns truction

All parties need to perform a self skills evaluation and carefully evaluate the challenges,
risks, as well as opportunities. CHP owner operators need to understand various
project delivery methods and their respective advantages and disadvantages, and
determine which is in their facility’s best interest. All parties should understand all
contract provisions, and those contract provisions must cover common construction
scenarios, such as changes in the work, as well as conditions specific to CHP plants such
as thermal and electric output performance guarantees. The contract provisions should
properly balance risks and responsibilities so that the lowest project costs are achieved.
Effective project management, by all team members, is a key component of a successful
CHP plant project.

References
AIA Document A201, Article 7 (1987 ed.); EJCDC Document 1910-8, Article 10 (1983 ed.);
FAR 52.243-4 (1987).
Currie, Abernathy, and Chambers, “Changed Conditions,” Construction Briefings No.
84-12 Federal Publications (1984).
Loulakis, M.C., Gilmore, and Hurlbut, S.B. “Contracting for the Construction of Power
Generation Facilities,” Construction Briefings No. 89-5, Federal Publications
(1989).
Loulakis, M.C. and Love, “Exploring the Design-Build Contract,” Construction Briefings
No. 86-13, Federal Publications (1986).
Loulakis, M.C., Thompson, and West, “Managing Construction Risks-The Owner’s
Perspective,” Construction Briefings No. 91-5 Publications (1991).