JAKARTA-BANDUNG

HIGH SPEED RAILWAY

PROJECT

BEST PRACTICE IN
CONTROLLING
EPC/TURNKEY CONTRACT

Presented by:
Suryanto Supardi/
Nur Hasan Achmad

Jakarta
August 19, 2020
 PROJECT RELATED PARTIES

KCIC
PROJECT OWNER
JAKARTA-
BANDUNG HIGH
SPEED RAILWAY
PROJECT CDJO
SUPERVISION CONSULTANT

HSRCC
EPC CONTRACTOR
 Same Company

Same Company
 HSRCC PROFILE
EPC CONTRACTOR Consortium:
1. CRIC: Leader (Coordination & Project Management)
2. PT Wijaya Karya: Civil Works (Bridge, Subgrade, Station,
Depot), Track (Track Slab, Sleeper)
3. CREC: Civil Works (Bridge, Tunnel, Subgrade, Station, Depot),
Power & traction power supply system
4. Sinohydro: Civil Works (Bridge, Tunnel, Subgrade, Station,
Depot), Track
5. CRRC: EMU (Rolling Stock)
6. CRSC: Integration of Signaling, Communication, Information &
Power supply syatem
7. CRDC: Design/Engineering Works
 CDJO PROFILE

China Academy Railway Sciense

CHINA
(CARS) - Leader
PT DARDELA ACADEMY
YASA GUNA RAILWAY
SCIENCE

PT Dardela Yasa Guna

CARS DARDELA JOIN OPERATION

CONTRACTUAL RELATED
PARTIES
 EMPLOYER CONTRACTUAL RELATED
PARTIES

Contract No.:
030100/HK.02/2018
KCIC-HSRCC Contract
EPC/Turnkey Contract – FIDIC Silver Book

FIDIC
Silver Book
JKT-BDG KCIC-CDJO Contract
HSR
Contract
PROJECT Construction Supervision - FIDIC White Book
Contract No.:
0056/CA-4/KCIC/04.04.17

CONSULTANT/
Employer’s
CDJO Internal Contract
Delegated Person Join Operation Contract

HSRCC Internal Contract

Consortium Contract
EPC CONTRACTOR
 KCIC-HSRCC CONTRACT AGREEMENT
EMPLOYER Contract Documents
1. Contract Agreement No.: 0056/CA-4/KCIC/04.04.17, April 4, 2017 & Add. I

2. Particular Conditions of Contract and all its Appendix

Hierarchical 3. General Conditions of Contract – FIDIC Silver Book 1st Edition 1999
Core of the contract
4. All Minutes of Clarification & Negotiation
agreement
FIDIC
Silver Book 5. KCIC's Employer's Requirements
Contract
6. HSRCC's Proposal

7. Letter of Appointment (LOA) No. 0037/CA-4/KCIC/8.12.16, Oct 28, 2016

8. Letter of Intent (LOI) No. 0034/CA-4/KCIC/28.10.16, Dec 15, 206

9. Any other doc forming part of the Contract as agreed by the Parties
EPC CONTRACTOR
 KCIC-CDJO CONTRACT AGREEMENT
EMPLOYER
Contract Documents
1. Contract Agreement No.: 030100/HK.02/2018, dated: March 8, 2018

2. Particular Conditions of Contract and its Appendix

FIDIC 3. General Conditions of Contract – FIDIC White Book 4th Edition 2006
Hierarchical

White Book
Contract Core of the contract
4. All Minutes of Clarification & Negotiation agreement
5. KCIC's Employer's Requirement

6. CDJO's Proposal

7. Letter of Intent (LOI)

8. any other docs forming part of the Contract as agreed by the Partiess
CONSULTANT
EMPLOYER'S DELEGATED PERSON
 UNDERSTANDING
EPC/TURNKEY PROJECT
FIDIC SILVER BOOK
 The Principle of EPC / Turnkey Project

The EPC Contractor has full responsibility to deliver

the project:
❑ within the agreed fixed lump sum price
❑ within the agreed fixed completed date
❑ meet the required performance quality

Contract Value: Fixed Lump-sum Price

Payment Terms: Milestone Achievement

 Contract Price
Covering contractor's wider range Extra
of risks (unforeseen conditions) Price
and cost of fund (10-30%)

Normal Normal
Price Price

Construction EPC/Turnkey
FIDIC Red Book FIDIC Silver Book
The consultant is
fully responsible Red Book vs Silver Book
for the quality of
the work Red Book
Design by Employer
Principles of balanced risk
sharing between the
Employer and the
Contractor
Construction supervision by
Consultant (assigned by
Employer) to ensure quality
Contract: unit price
Payment: progress payment
(based on BOQ & unit price)
FIDIC Red Book
FIDIC's Traditional Contract Form
The contractor is
fully responsible
for the quality of
the work
Silver Book
Design by Contractor
Contractor to assume
responsibility for a wider/
higher range of risks
Internal supervision by
Contractor to ensure quality
w/ little involvement by
Employer
Contract: fixed lumpsum
price
Payment: milestone
achievement FIDIC Silver Book
FIDIC's Advanced Contract Form
CONSTRUCTION SUPERVISION
 CDJO Tasks in KCJB Project

KCIC Consultation
❑ Provide report and give recommendation to KCIC based on the review
result of the EPC Contractor's internal supervision report.
Consultation
❑ Provide technical assistance to KCIC for the problem solving.

CDJO Supervision
❑ Ensure whether the EPC Contractor has conducted internal supervision
Supervision
of the quality and performance of the works in accordance with the
provisions of the EPC Contract.
❑ Review the EPC Contractor's internal supervision report.

HSRCC ❑ Random inspection, patrol inspection, special inspection, witness

inspection and parallel inspection based on review result.
FIDIC White Book CDJO Scope of Services

❑ Quality Management
❑ Progress Management
❑ Investment Management
❑ Contract Management
❑ HSSE Management
❑ Suggestions on Project Operation
❑ Compulsory Review of Construction
Drawings
❑ Related Services for KCIC's
Financing Party
 Matrix of CDJO Supervision in KCJB Project
Know &
Participate Review Check Verify Inspection Witness Request
Monitor
Quality
Management
Progress
Management
Investment
Management
Contract
Management
HSSE
Management
Project
Operation
Construction
Drawings
Provisional
Sum

Ref.: Contract No: 030100/HK.02/2018 - Appendix 1 Scope of Services

 Milestone Achievement

DK 93 Tunnel 1

DK 28
DK 93 Outlet Tunnel 6
Sub-grade Bridge & Culvert Tunnel & Open Cut
PROJECT QUALITY CONTROL
 Execution of EPC/Turnkey Projects

Operation &
Engineering Procurement Construction Maintenance

➢ Detailed Eng Design ➢ Purchasing/ ➢ Construction ➢ Operation

➢ Design Drawings Manufacturing ➢ Quality Control ➢ Maintenance
➢ Logistic Services ➢ Installation
➢ Quality Control ➢ Commissioning Taking Over
Certificate

Operation &
Maintenance

EPC Contractor

Deliverable: Jakarta-Bandung High Speed Railway, Ready for Operation

 Main Elements in Quality Assurance

Quality
Quality
Quality Equipment & Quality
Construction's
Materials Temporary Personnel
Method
Facilities

➢ Concrete Materials ➢ Casting Yard ➢ Management ➢ General & Special

➢ Steel Materials ➢ Batching Plant ➢ Engineers Method
➢ etc ➢ TBM ➢ Supervisors/ ➢ Work's Schedule
➢ Heavy Equipments Inspectors ➢ Equipments used
➢ Supporting Staff ➢ Number of Personnels
➢ Labor

High quality material Appropriate and Competent and Effective and efficient
adequate equipment experienced personnel work method
[PCC Sub-clause 7.3 Inspection
[GCC Sub-clause 4.17 [GCC Sub-clause 6.9 [GCC Sub-clause 8.3
& 7.4 Testing]
Contractor’s Equipment] Contractor’s Personnel] Programme]
 Provisions of the Contract for Quality Control

EMPLOYER Contractual References

1. Contract Agreement No.: 0056/CA-4/KCIC/04.04.17, April 4, 2017 [EPC]

2. Particular Conditions of Contract (PCC):

❑ Sub-clause 4.1 Contractor’s General Obligation [EPC Principles]
❑ Sub-clause 4.9 Quality Assurance [Quality Management System]
❑ Sub-clause 7.3 Inspection [Quality Materials & Production]
EPC/Turnkey ❑ Sub-clause 7.4 Testing [Quality Materials & Production]
Contract
3. General Conditions of Contract (GCC):
❑ Sub-clause 4.9 Quality Assurance [Quality Management System]
❑ Sub-clause 4.17 Contractor’s Equipment [Quality Equipment]
❑ Sub-clause 6.8 Contractor’s Superintendence [Internal Supervision]
❑ Sub-clause 6.9 Contractor’s Personnel [Quality Personnel]
❑ Sub-clause 8.3 Programme [Quality Construction Method]
EPC CONTRACTOR ❑ Sub-clause 4.21 Progress Report [Quality Deliverable]
 EPC CONTRACTOR’S
INTERNAL SUPERVISION
 EPC Contractor’s Internal Supervision
To fulfil the Contractor’s obligations, the Contractor shall provide all
HSRCC necessary superintendence to plan, arrange, direct, manage, inspect
and test the works

Internal
Supervision Superintendence shall be given by a sufficient number of persons
having adequate knowledge of the operations to be carried out
(including the methods and techniques required, the hazards likely to
be encountered and methods of preventing accidents), for the
PT MEMBER

PT MEMBER
PT MEMBER

PT MEMBER

PT MEMBER
PT MEMBER
PT MEMBER

satisfactory and safe execution of the Works.

Self supervision/inspection/test
must be conducted by HSRCC &
Internal PT Members
Supervision
HSRCC & PT Member’s Inspector
must qualified, skilled & Ref.: GCC Sub-clause 6.8
Subcontractors experienced
Contractor’s Superintendence
PROJECT DELIVERABLE
 JBHSR EPC/TURNKEY PROJECT
What do KCIC pay for? What do HSRCC deliver?

JBHSR
Money

Deliverable:
JBHSR Ready for Commercial Operation

Contract Price Jakata-Bandung High

USD 4,701,182,062.18 Speed Railway: 142.3 km
THANK YOU