In 2013, through a publically advertised and competitive process, Chant was selected by Manitoba Hydro to prepare an independent AACE Class 2 contractor style capital cost estimate for the 695 MW Keeyask Generating Station Project on the Nelson River in Northern Manitoba.
The scope of Chant’s assignment was to evaluate the General Civil Works RFP Package, provide feedback regarding risk transfer, contract language and general constructability, and further to respond (as a contractor or contractors would) to Manitoba Hydro’s planned tender call for the General Civil Works Contract. Hydro intended to use Chant’s independent cost estimate for their internal corporate project approval processes and, ultimately, in negotiations with future proponents.
Description of Services Provided
Manitoba Hydro had set very rigid interim and final completion delivery milestones for this assignment and had made commitments to both internal and external stakeholders with respect to the timeliness of Chant’s deliverables. Chant successfully achieved all milestone delivery dates.
The assignments work scope included common and rock excavation, borrow deposit development, primary and second phase concreting (380,000 m3), aggregate production and concrete batching, superstructure erection, building development/finish work and balance of plant electrical and mechanical works. Also required were a complete quantity take-off (all disciplines), the development of a detailed project schedule (5 years), material flow plan and site haul road plan.
A Basis of Estimate described in narrative form the means, methods and sequencing logic Chant deployed. The actual cost estimate (direct and indirect expenses) was assembled using a crew oriented/past cost-driven approach. Chant also prepared a risk assessment, a cash flow, provided interim progress updates (monthly) and made a series of date certain submissions during the contract period culminating with a three (3) day presentation/defense of all assignment deliverables to Manitoba Hydro in Winnipeg.
Chant’s estimated tender amount for the Keeyask General Civil Works Contract was $1.4 billion. Chant understands that the Contract was actually awarded to the Bechtel/Barnard/Ellis Don partnership for a figure very close to Chant’s estimated tender value.