Two critical elements of project development and management for complex projects are risk and interface management. Both require a sound awareness of the potential problems that could occur, a comprehension of the impact that would result, and an understanding of how best to reduce or eliminate the likelihood and impact of such risks.
The extensive hands-on experience of our team has helped K2 Management to excel in risk and interface management. The experience gained from working on multiple projects for a range of clients allows our team to share experiences and generate a body of collective knowledge within K2 Management that supports implementation of the latest best-practice.
K2 Management has developed expertise in the areas of package management, proactive risk management strategies, and the identification and handling of interfaces and responsibilities on multi contractual boundaries. We also develop effective business risk management processes that identify, measure, assess, mitigate and monitor overall project risks.
Helping our clients develop and implement successful projects
K2 Management’s assignment with Triton Knoll Offshore Wind Farm began in its early stages, where we delivered a full Lenders’ Technical Advisor...
K2 Management’s assignment with Triton Knoll Offshore Wind Farm began in its early stages, where we delivered a full Lenders’ Technical Advisor role for our client over a two-year period.
Commencing in the feasibility phase, our assignment supported the client through the UK CFD auction process and the mandating of lenders until financial close.
The duration of our involvement meant that bankability considerations were accounted for throughout the development process and this allowed us to mitigate risk at an early stage and ensure that the business case was bankable for the CFD process.
The scope of the LTA role saw us advising lenders on:
Triton Knoll was successful in the CFD auction project in 2018 and soon after financial close was achieved, we were awarded the construction monitoring role on the circa. 860 MW project.
The four-year construction monitoring mandate delivers monitoring of permitting, design, manufacturing and construction activities as well as monitoring of project expenditure on behalf of a consortium of international lenders.
Julian Garnsey, Project Director of Triton Knoll, said: “We are delighted to reach financial close so soon after bank launch; engaging with K2 Management as technical advisor from the early stages has allowed us together to develop a bankable and well-considered project from the beginning.”
Will Sheard, Director, Due Diligence added: “The drive for reducing the levelized cost of energy demands innovative and boundary-pushing approaches to design, financing, contracting and construction methodologies.”
“Sufficient de-risking to support financing and early involvement as technical advisor, as we have delivered on Triton Knoll, will become more common place to secure a robust business case from the earliest stages and we are already seeing a demand for this approach in projects competing in the next CFD auction round.”
K2 Management delivered full scope construction management on the €1.4bn Deutsche Bucht offshore wind farm in the German North Sea.
K2 Management delivered full scope construction management on the €1.4bn Deutsche Bucht offshore wind farm in the German North Sea.
After supporting Highland Group Holding as owner’s engineer and technical advisor since 2013. K2 Management was awarded a lump sum service agreement by Northland Power after it acquired the project in 2017.
The assignment's scope saw K2 Management deliver full construction management services, from the pre-construction phase through to the Commercial Operation Date, planned for 2019.
This two-year scope for Northland Power included:
Morten Melin, Executive Vice President, Construction at Northland Power commented:
“DeBu is a large offshore project; having a full-scope construction management provider will help to ensure its success. Northland Power has selected K2 Management for this role as a result of their extensive track-record, and their significant contribution to bringing the project to financial close.”
Hear from K2 Management and Northland Power on the Deutsche Bucht project in this video...
Our services for Highland Group Holding from 2013-17 included:
Hear what Northland Power's Boris Balan has to say about working with K2 Management:
The first foreign-owned wind farm in Vietnam, Dam Nai, has achieved successful completion, becoming commercially operational in early 2019. The...
The first foreign-owned wind farm in Vietnam, Dam Nai, has achieved successful completion, becoming commercially operational in early 2019. The project was developed in two phases using a multi-contracting strategy, split into three main contracts - turbine supply, civils, and substation.
Appointed as owner’s engineer and responsible for project and construction management, K2 Management is proud to have created significant value for both clients and stakeholders.
The project, which is now in the operation and maintenance phase, comprises of 15 2.625MW Siemens Gamesa wind turbines, constructed across two project phases. The first phase, 7.875 MW, was completed in 2017/8 with the second phase becoming operational early 2019. The project has been developed by TSV and The Blue Circle with the sponsorship of Armstrong Asset Management. BIDV, a Vietnamese bank, participated in the financing of the project.
Turning challenges into opportunities
The project was not without its challenges - tight time constraints and integrating a high number of local workforces from different contractors made for a more complex challenge, heightened by the fact that Vietnam is a relatively new market for wind energy projects.
However, attributing the right expertise to deliver the owner’s engineer, project management, construction management and strong back-office engineering, meant the project was in good hands. The client did a fantastic job, developing this project in a particularly challenging environment. Daily collaboration between the client’s development team and K2 Management’s team made this project not only feasible but also a success story in the region.
Our scope
The project management role delivered support from the early stages of development through take over, including contractor evaluation and selection, contract drafting and negotiation, insurance management, project reporting, interface and contract management and regular progress monitoring.
With a full owner’s engineer scope (Civil, Electrical, and WTGs), K2 Management undertook a design review, site inspection of the entire balance of plant, particularly around critical milestones, and wind turbine and substation activities from factory inspections through final commissioning. The team also delivered ad-hoc support for urgent engineering issues using input from our site team.
In emerging markets like Vietnam common issues can arise, such as an immature or sometimes non-existent supply chain and inadequate infrastructure. These are not insurmountable problems and being able to flex and adapt to conditions and utilize what is available locally was a part of our Owner’s Engineer scope. This approach enabled us to both mitigate risks for the client but also to comply with local content regulations and maintain a robust business case.
The construction team collaborated closely with the developer on construction activities, contractor management, health and safety issues, construction quality, project documentation and planning to secure contract, timeline and budget compliance.
Celebrating project successes!
Having a good team was not the only thing key to the success of the project - communication also played an integral part. Our construction team consisted of both international and local staff, where an international mindset, experience and practices met with hands-on local knowledge. The team’s diversity ensured that compliance with local regulation and practices were met, while still maintaining an international standard of work.
Health, Safety and Environment (HSE) is inherent in everything we do at K2 Management, and we know that a generic HSE plan will not fit every project. The HSE plan created for Dam Nai was customized to suit the individual elements of the project while considering the local market to ensure that those working on the project were fully engaged, all the while complying with international best practice. By following this detailed and bespoke plan, no accidents were reported across more than 600,000 manhours on-the site during the last two years.
Edward Douglas, Partner at Armstrong Asset Management commented: “K2 Management has an excellent reputation in the region and brought the level of expertise and guidance required to successfully commission this project. Using their vast experience on energy projects combined with local knowledge and insight into how to get construction right, we are proud to see Dam Nai operational.”
“Armstrong has a mandate to invest in renewable energy projects in Asia, and the completion of Dam Nai will contribute to our energy development goals in Vietnam.”
Patrick Architta, Business Development Director at K2 Management, stated: “We were delighted to be appointed again in this role for Dam Nai and are proud to have seen this project through from the development phase to completion. With a mix of local professionals and international experts from across the energy sector, we had a strong team in place and this is reflected in the completion of this flagship wind project for Vietnam.”
"K2 Management offshore wind and project experience has been instrumental
"K2 Management offshore wind and project experience has been instrumental
Financial close reached in short time
Construction of the 402 MW German offshore project was completed in less than 14 months and just 23 months after financial close. Commissioning activities on the last turbine were completed end May 2017 – 4 months ahead of agreed schedule and below the budget agreed at financial close.
During the construction
The project was acquired in September 2014 by investment firm Highland Group Holdings Ltd, but at
K2 Management has been supporting as owner’s engineer, technical advisor and as part of the project management team – including the role as Project Director – bringing Veja Mate to financial close in a very short time.
Services provided:
