Using Risk Management to Reduce Cost and Customise a Contract for a Water Reuse Desalination Plant

摘要

This paper presents the results of a study into reducing the construction and operating costs of arnsmall desalination plant built for the purpose of treating effluent from a waste water treatmentrnplant and recycling it to industrial and irrigation users. Detailed modelling of the plant and itsrnassociated pump stations and pipelines revealed how the risks of the project could be allocatedrnbetween the plant builder and operator and City West Water, the client of the enterprise. Thernstudy also revealed how the design of the contracts themselves could be used to also reduce costsrnby striking a balance between the commercial objectives of the contractor and the socialrnobjectives of the client. Sufficient detail is included in the paper to permit others the option ofrnconsidering a similar approach in engaging a contractor to design, construct and operate arntreatment plant.