Cost Estimating Methodologies for Substations and Transmission Projects

Cost Estimating Methodologies for Substation and Transmission Projects

November 4-5, 2021 | Online :: Central Time

“They did a good job interjecting real world examples to illustrate the material. A good high-level introduction to cost estimating.” – Ameren

“Speakers did a great job. It is hard when folks are remote, but the content was helpful, they kept to schedule, and I learned a lot.” – EDF Renewables

Throughout North America, the need for new utility projects is projected to grow to improve electricity delivery, increase capacities, improve reliability, and meet new standards associated with incorporating renewable energy generation into the smart grid.

In order to effectively utilize allocated and dedicated funding, it is critical for utilities, developers, sub-contractors, project managers, and suppliers to fully understand efficient utility project cost estimation, as this new infrastructure has substantial costs and risks associated with each project. In fact, new overhead transmission lines can cost $1 million or more per mile. The process of building transmission level projects often takes many years—even in the most streamlined process.

In this course, attendees will recognize the critical components to consider in a transmission project estimate. Key components of the course include all factors that impact the final cost of building this infrastructure, including permitting and siting, materials and engineering, construction, and project management.

Learning Outcomes:

  1. Discuss utility project planning process and budget considerations utilizing industry samples of typical industry projects
  2. Discuss the environmental and siting processes and the impact on schedules and costs
  3. Analyze engineering, material cost, and construction considerations for transmission lines and substations
  4. Compare and contrast contracting methods to include design-bid-build vs. OE/EPC
  5. Identify strategies to mitigate risks across the spectrum of project types and sizes

    Agenda

    Thursday, November 4, 2021 – Central time 

    8:45 – 9:00 a.m.
    Log In and Welcome

    12:30 – 1:15 p.m.
    Lunch Break

    9:00 a.m. – 4:30 p.m.
    Course Timing

    Session I: Costs for Major Utility Projects: Substations, Overhead Transmission, and Underground Transmission

    Group discussion of major components, including materials and construction

    Project Begins at the Substation

    • Planning
    • Site development

    Conduit & Grounding Plan

    • Foundations
    • Materials
    • Substation bus
    • Conductor/cables Overhead

    Transmission Lines

    • Plan & profile
    • Staking
    • Foundations
    • Structures
    • Hardware

    Underground Transmission Lines

    • Plan & profile
    • Duct bank
    • Line splice and pull-through vault
    • Line cable
    • Line substation riser details

    Session II: Permitting, Siting, and Right of Way Considerations and Costs

    • Overview of environmental siting process
    • Potential impacts to project timelines and costs
    • Urban vs rural considerations
    • Construction considerations
    • Strategies to minimize schedule obstacles

    Session III: Utility Cost Estimation Process

    • Developing budget parameters and the project plan
    • Utility estimate components
    • Cost estimating best practices during the project life cycle
    • Cost reference development
    • Risk management
    • Expected accuracy ranges
    • Measuring performance
    • Project cost estimate example

    Friday, November 5, 2021 – Central time 

    8:45 – 9:00 a.m.
    Log In

    9:00 a.m. – 12:00 p.m.
    Course Timing

    Session IV: Methods of Contracting

    • Identify common types of contracts and contract delivery methods and understand the risks and advantages and disadvantages associated with each:
      • Fixed price/lump sum
      • Cost plus
      • Time and material
      • Traditional arrangement/design-bid-build
      • EPC arrangements and risk management
      • Open book EPC variations
    • Impacts to Construction Process

    Session V: Project Cost Estimate Case Study

    Class exercise to estimate major categories of project costs compared to actual costs on two real life projects.

    Workshop

    Cost Estimating 201

    Friday, November 5, 2021 – Central time

    12:45 – 1:00 p.m.
    Log In

    1:00 p.m. – 5:00 p.m.
    Workshop Timing

    Overview

    This workshop is geared towards those who would like a further understanding of the cost estimating process and experience a more in-depth teaching session after they attended the Cost Estimating Methodologies course. Attendees will learn more of the guidelines for different types of estimating projects, as well as how to use these guides. Attendees will also be working with real-life examples so they can dig deeper into the process and gain a full understanding of cost estimating for substation and transmission projects.

    Learning Outcomes

    • Review how to apply AACE guides to major power projects and how the guides can be used to provide meaningful information to utility managers
    • Calculate risk management parameters based on known project information
    • Use different Estimating tools currently available to the industry
    • Participate in exercises in developing revised cost estimates throughout the project life cycle  
    • Discuss how to prepare CE for both a small EPC solar project and a large EPC transmission project

    Agenda

    • Review of Cost Estimating Principles
    • Types of Cost Estimates and How They are Used
    • Cost Estimating Guidelines – The Application of AACE Recommended Practices to Major Power Projects and How They Can Be Used to Provide Meaningful Information to Utility Managers
      • AACE 96R, 69R, 56R, etc.
      • How to use the guides for different types of projects
      • Application of contingency
      • Expected accuracy range
      • Confidence interval
    • Identification of Critical Project Elements
      • Substation
      • Transmission
      • Distribution
      • Generation
    • Cost Estimating Tools Commonly Used in the Industry
    • Class Exercise – Building a Cost Estimating from the Bottom Up For:
      • Solar garden
      • Gas turbine
      • Transmission line

     

    Workshop Instructor

    Jay Turner, EIT, PMP, Six Sigma Green Belt, Project Controls Major Projects Advisor, Southern California Edison

    Jay Turner has fifteen years of cost estimating, project management, root cause analysis, and process improvement experience in the utility, accounting, and consulting industries. He currently estimates and tracks project costs for transmission, substation, and generation projects for Southern California Edison. Jay has been certified as a Project Management Professional by the Project Management Institute and a Six Sigma Green Belt by the Institute of Industrial Engineers. He earned his M.B.A. and M.S. Systems Engineering from Loyola Marymount University and his B.S. in Engineering and Applied Science from the California Institute of Technology.

    Instructors

    Jay Turner, EIT, PMP, Six Sigma Green Belt
    Project Controls Major Projects Advisor, Southern California Edison

    Jay Turner has fifteen years of cost estimating, project management, root cause analysis, and process improvement experience in the utility, accounting, and consulting industries. He currently estimates and tracks project costs for transmission, substation, and generation projects for Southern California Edison. Jay has been certified as a Project Management Professional by the Project Management Institute and a Six Sigma Green Belt by the Institute of Industrial Engineers. He earned his M.B.A. and M.S. Systems Engineering from Loyola Marymount University and his B.S. in Engineering and Applied Science from the California Institute of Technology.


    David Tennant, Windward Consulting Group LLC

    David Tennant has successfully directed over $3.5 billion in projects, programs, and resources. With degrees in engineering and business, he has a unique perspective on projects at both the practitioner and executive levels. His experience includes engineering, operations, marketing, board leadership, consulting, training, and numerous executive roles.

    Mr. Tennant has had projects worldwide and published over 35 articles on technical and managerial topics. His experience includes utilities, manufacturing, services, telecom, R&D, and EPC (engineering) firms. He is a registered professional engineer and certified project manager (PMP).

    Online Delivery

    We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

    • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
    • You will receive a meeting invitation will include a link to join the meeting.
    • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
      • You will need to join the appropriate meeting at the appropriate time.
    • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
    • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

    Register

    Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

    If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

    Event Standard RateAttendees

    CEUs

    Credits

    AP_Logo

    EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

    EUCI is authorized by IACET to offer 1.0 CEUs for this event and 0.4 CEUs for the workshop.


    Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

    Course CPE Credits: 12.0
    Workshop CPE Credits: 4.0
    There is no prerequisite for this course or workshop.
    Program Level: Beginner/Intermediate
    Delivery Method: Group-Live presented online due to COVID-19
    Advanced Preparation: None

    CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

    Requirements for Successful Completion of Program

    Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

    Instructional Methods

    PowerPoint presentations, interactive group exercise, and group discussion will be used during this course.

    Who Should Attend 

    • Transmission and substation project managers, estimators, and contract managers who are new to the job
    • Transmission and substation engineers 
    • Supply chain and cost accounting professionals for utilities and other energy companies
    • Generation project developers and engineers who need an understanding of transmission components and costs
    • Regulatory agency staff
    • Consultants and engineering firms that work within the electricity transmission sector

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