Modernisation of signalling
system (2001/LV/16/P/PT/006)
Stage 1
• Intermediate Body: Ministry of Transport
• Employer: Latvian Railway - LDZ
• Contractor: Consortium Thales Rail
Signalling Solution Gmbh and Thales Rail
Signalling Solution Baltics
• Engineer: Systra
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1. General information of
contract:
Type of project: Plant and Design-Build (FIDIC)
Commencement date: 10.01.2005
Contract price: 47.597.197 EURO
Scope of works (7 stages):
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–
–
–
–
–
–
interlocking systems: 32 stations
Lineblock system, including cable laying: 350 km
Level Crossing systems: 83
Reconstruction of 10 kV power supply line: 182 km
2 CTC central offices
Point heating system: 21 stations
Refurbishment or installation of buildings (depends on situation):
32 stations
• Time for completion:
– Initial: 09.01.2009
– Adjusted in Addendum No.3: 31.12.2009
2. Payments
• Basis for payment:
– FIDIC Sub-Clauses 14.2, 14.4, Particular Conditions: BPQPW
– Performance of a milestone (FAT, Delivery, Installation, Testing,
Commissioning) for any of 12 types of equipment
– Invoice reaching 1% of contract Price.
• Payments made:
– Advance payment: 4759719,7 EUR (29.06.2005)
– Interim payments:
• 1-st: 2 863 610,29 EUR (Cable FAT) (27.12.2006/30.07.2007)
• 2-nd: 897 499,41 EUR (Cable FAT and delivery) (30.07.2007)
• 3-d: 484 215,21 EUR (Cable FAT and delivery) (30.07.2007)
• 4-th: 2 082 213,5 EUR (FAT of interlocking, CTC hardware, UPS;
cable delivery) (21.12.2007)
– Totally paid: 11 087 258,11 EUR (23,3 %)
• Next payments:
– Probably for equipment/cable delivery
– No more reasons: no further FAT performed, no completed installation,
no test is foreseen, no commissioning planning soon
3. Cumulative Contractor “Completed Task"
Performance
4000
Quantity of Tasks
Planned to be Completed
3500
Actually Completed
Work Programme of 24.08.2007
3000
2500
2000
Work Programme of 05.05.2006
1500
1000
500
0
Date
4. On-going Contractor Task Performance
Number of Tasks
300
Tasks which did not Progress from Previous Month
Revised Work Programme
250
Tasks which progressed from Previous Month
200
150
100
50
0
Date
5. Delays in project implementation*
• Submission of FRS documents for approval: up to 180
days
• Submission of Subsystem Technical Specifications for
approval: up to 200 days
• Submission of detailed design for approval:
– Construction part:
• Stage 1: up to 170 days
• Stage 2: up to 170 days
• Stage 3: up to 45 days
– Technological part:
• Stage 1: up to 160 days
• Stage 2: up to 170 days
• Stage 3: up to 45 days
• Construction activity:
– Stage 1: up to 180 days
– Stage 2: to be started April, 2008, not ready.
* Based on the Detailed Work Programme, document 3CR 74510 0001 UHAFA, Edition 05, dated 24.08.2007
6. Reason for delays
• Insufficiency of Contractor’s human
resources (quality and quantity)
7. Consequences of current delays
• Probable delay of project completion
• Application of conditional Delay Damages
(currently about 157.200 EUR)
• Probable delay of project Stage 2
(Contractor: Consortium Bombardier/Belam
Riga): CTC Jelgava, CTC Daugavpils
8. Measures already taken
• Contract execution extended for 1 year
(Addendum No.3)
• Discussions during monthly progress meetings
• High level management meeting with
involvement of president of Thales Rail
Signalling Solutions, held on 02.02.2008
• “Hot” management meetings with LDZ Technical
Management Director and Contractor – weekly.
9. Measures to be taken
(Contractor)
• Involve more appropriate experienced experts
for respective design areas
• Complete remaining technical solutions (CTC,
Buildings/containers, Level Crossings, Diesel
generators, 10 kV line, etc.)
• Issue documentation for approval without further
delays
• Hire many more subcontractors, especially for
performance of cable laying activities in parallel