Vogtle nuclear plant > 12 months behind schedule and $1B over budget before foundation poured
Used with permission:
Persistent and New Problems at Vogtle Nuclear Project Signal Over 12 Months of Delay and Well Over $1 Billion in Cost Overruns – Even Before Foundation is Poured- June 1st, 2012
Statement from NC WARN Director Jim Warren regarding the independent construction monitor’s testimony, which was made public today:
Although it is heavily redacted, I encourage reporters to read Dr. William Jacobs’ testimony to see the very damning verbage on many fronts, which give lie to industry claims the project is going well. This complicated construction project is a mess and it’s getting worse. A few highlights (all quotes are Jacobs’ words):
- Vogtle appears to be at least 12 months behind schedule, including Jacobs’ estimates for correcting cited problems. In addition to the 7.5 month delay Southern has admitted, Jacobs cites additional delays for reworking rebar installation and a months-long design revision that is redacted. (p. 10)
- Construction cost overruns appear to exceed $1 billion. (pp 6-7), Additional changes and costs have been requested and more are expected (p. 17). “[M]any of the potential changes with significant cost implications in my 5th VCM testimony have not been resolved.” *
- There still is no Integrated Project Schedule, which Jacobs deems a serious challenge to the project. “(pp. 10 and 13) “… a realistic, achievable IPS supported by all parties does not exist at this time. The Project is being managed based on short-term forecasts … A first of a kind project of this magnitude and complexity cannot be effectively or efficiently managed using 60 to 90 day forecasts over the long term.” (p. 17)
- Additional delays are likely. “The cause for Project delays, the responsibility for the delays, the cost of the delays and the cost for recovering some of these delays must be resolved before all parties can agree on a schedule. (p. 17)
- Performance by lead contractors and suppliers has been troubled: “The Consortium’s performance to date does not demonstrate the ability to achieve a xxxxxxxxxxx construction schedule. (p. 13). “In addition, it is likely that the xxxxxxxxxx schedule may not be achievable based on the Consortium’s poor performance to date on many Project activities.” (p. 11)
- Serious problems with Shaw’s component fabrication facility remain unsolved after over two years, and delays in delivery are already mounting: “[M]any of the issues and concerns that were identified and discussed in the Second, Third, Fourth and Fifth Semi-annual VCM proceedings have not been resolved at this time. …the Consortium has not yet demonstrated the ability to produce complete modules and CFC design packages as needed to support the Project schedule.” (p. 8 ) … Issues related to quality assurance, material and fabrication problems at the Shaw Modular Solutions facility continue to be a significant concern for the Project. … Fabrication of these modules and submodules is a very significant task and critical to the success of the Project. SMS has not yet demonstrated the ability to meet the required production rate of high quality modules needed to support the Project schedule. (p. 19)
- “Finalization of the detailed Vogtle specific AP1000 design … remains a concern.” “The number of late [design] packages continues to grow each month. Late delivery of detailed engineering packages can have a significant negative impact on the Project. Late engineering will delay required procurement activities and could result in late delivery of required equipment to the site. However, without an Integrated Project Schedule as described above, it is difficult to even determine the impact of these late engineering packages and to know which packages must be accelerated.” (p. 20)
- public claims that the project is on budget are false. “As in past reports, EPC capital expenditures continue to be under budget primarily due to the failure of the Consortium to achieve certain milestones in accordance with the Project milestone schedule.” (p. 15)
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* Cost estimates in Jacobs’ report refer to Southern Company’s 45.7% ownership of the project.
http://www.ncwarn.org/2012/06/persistent-and-new-problems-at-vogtle-nuclear-project-signal-over-12-months-of-delay-and-well-over-1-billion-in-cost-overruns-even-before-foundation-is-poured/
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