Project Development Decision Tree

1. Project Development Decision Tree Permitting In-house Reqmts. Energy Sales Fuel Consumption Schedule Constraints Plant Configuration Risk Assessment Capital Costs Project Revenue Cost and Schedule Risk Project Financing Control, Flexibility Reqmts. Project Delivery System Quality and Cost Mgmt. Coordinated Agreements Time Phased Progress Risk and Interface Mgmt.

2. Owner’s Basic Project Management Functions Development Delivery Comm. Ops. • Permitting and Reg. Compliance • Fuel & Energy Agreements • Utility Coordination & Interfaces • Financing Draw Certifications • Contractor Progress Payments • Submittals & Design Review • Project Risk Mgmt. • Existing Facility Interface & Coord. • Contract Change Orders & Claims • Coord. Owner’s Suppliers, Contractors • O&M Training & Documents • Purchase Consumables, Spares, Tools • Project Counsel Interface

3. Project Delivery Contract Framework EPC Owner Engineering, Procurement & Construction Contractor Trade Subs Basic Proj. Mgmt. Functions Material Suppliers Equip. Rentals Specialty Subs Service Providers Equipment Suppliers Field based Engrg. Support Commissioning and Testing Services Design Documents Production Submittal Coordination • Notes: • Owner’s flexibility and control during project delivery are limited by “turnkey” nature of EPC agreements: offsetting contractor’s assumption of liability for timely and within-cost performance. • Owner’s project management responsibilities are least among contracting options. • Fixed price and schedule depend on fully developed equipment and design specifications, site and permitting data included in the contract documents.

4. Project Delivery Contract FrameworkDesign – Bid - Build Owner Architect / Engr Constructor Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin. Design Documents Production Trade Subs Material Suppliers Submittal Coordination Equip. Rentals Equipment Suppliers Field based Engrg. Support Specialty Subs Commissioning and Testing Services Service Providers • Notes: • Owner assumes burden of coordination and liability for performance of both designer and builder. • Owner preserves flexibility during design and equipment selection; later engaging constructor, generally resulting in longer project schedule compared to EPC configuration. • Owner logically takes on engineered equip. purchase and commissioning responsibilities, thus requiring robust technical and commercial team. • Owner captures cost saving with reduced contractor risk and scope compared to EPC configuration.

5. Project Delivery Contract FrameworkDesign – Build Owner Contractor Architect / Engr Basic Proj. Mgmt. Functions Plus Technical Compliance Team Submittal Coordination Service Providers Field based Engrg. Support Trade Subs Design Documents Production Specialty Subs Material Suppliers Equip. Rentals Equipment Suppliers Commissioning and Testing Services • Notes: • Shorter Schedule and contained cost depend on successful coordination between Contractor and its designer. • Owner retains less control and risks design compromise in favor of Contractor’s interests. • Owner may require more robust team depending on allocation of scope of supply and start-up work.

6. Project Delivery Contract Framework Multiple Primes Owner Architect / Engr Co-PrimeContractor Co-PrimeContractor Design Documents Production Equipment Suppliers Trade Subs Service Providers Specialty Subs Submittal Coordination Equip. Rentals Material Suppliers Field based Engrg. Support Basic Proj. Mgmt. Functions Plus Robust Field Mgmt. Team Plus Coord. Multiple Contractors Commissioning and Testing Services • Notes: • Robust field management team and precisely coordinated prime contracts ensure orderly progress by horizontal organization, mitigation of potential claims and project delays, and delivery of quality project to commercial operation. • Owner control is maximized, and allocation of risk and scope is flexible.

7. Project Delivery Contract Framework Construction Manager At Risk Owner Architect / Engr Construction Mgr. At Risk Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin. Trade Subs Design Documents Production Material Suppliers Equip. Rentals Submittal Coordination Equipment Suppliers Specialty Subs Field based Engrg. Support Commissioning and Testing Services Service Providers • Notes: • Owner allocates construction work progress, payment and coordinaton responsibilities to C.M. At-Risk, but retains coordination of design documents, major equipment deliveries, and commissioning works. • Owner is required to have less on-site presence than multiple-primes configuration, and maintains high degree of control and flexibility in all areas. • Differing from Design-Bid-Build arrangement, Owner retains C.M. during design phase and benefits from continuity of his expertise throughout project completion.

8. Project Delivery Contract Framework Construction Manager - Agent Owner Architect / Engr Constr. Mgr. Agent Constructor Trade Subs Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin. Design Documents Production Material Suppliers Equip. Rentals Submittal Coordination Specialty Subs Field based Engrg. Support Equipment Suppliers Service Providers Commissioning and Testing Services • Notes: • Owner retains contract risks of multiple-primes configuration and relies on C.M. Agent to coordinate design and supply logistics with construction requirements and constraints. • Owner retains robust project team, flexibility and control over project operations.

9. Project Development Milestones PrecedingProject Delivery Structure Formation Capital Justification, Consolidation of Project Objectives & Strategy Decisions Substantial completion desirable in all cases Environmental Permit Applications Substantial completion desirable in all cases Energy Sales, Fuel Purchase, Water Supplies Agreements Substantial completion desirable in all cases Site Plan, Geotech, U/G Utilities, Existing As-Built & Infrastructure Dwgs. Substantial completion desirable in all cases Preliminary Design Docs – Cycles, Schematics, Gen. Arrangements, Site Plan Conceptualization complete Equipment Specifications and Purchase Forms Outline Technical and Commercial Forms

10. Preliminary Project Delivery Documentation Development - 1 • Existing Site and Infrastructure Drawings • Site plan, Grading and Drainage, Roads and Rights-of Way, Utility Tie-ins, U/G Obstructions • Soil Survey and Geotech Report including sample borings • As-built U/G Construction Drawings, facility tie-ins, raw water take-off, waste water discharge • Preliminary Design Documents • Water and Heat balance diagrams • Power Distribution Schematics, HV, 15kv, 6kv • Project Site Plan including grading and drainage, major equipment foundations, Building outlines, roads, and fuel storage yard • Schematic Plant Control Outline and Existing Facility Interfaces • Major Foundations Outline Plan including piling and U/G services • Civil and Structural Specifications for concrete, Buildings, Foundations, Structural Steel, Fencing, Erosion Prevention, • Electrical Specifications relating to utility ties, grounding, • Major Equipment Specifications including boiler, turbine generator, step-up transformer, fuel conditioning, AQCS, distributive control system • General Arrangement Drawing showing piping and raceway routing, access and laydown areas, major equipment location

11. Preliminary Project Delivery Documentation Development - 2 • Project Contract Exhibits for each contractor, supplier and service provider • Scope of Work • Site Conditions • Referenced Specifications and Third Party Agreements • Site Safety Rules, Work Permits, Security Protocols • Coordinated Insurance Requirements • Forms of Lien waiver, performance/payment bonds, change orders, payment applications, • Special Terms and Conditions • Project Contract Outlines tailored to Owner’s business and risk strategy • Capture Owner’s commercial & management priorities preserving desired degrees of control, involvement, flexibility and Risk in project delivery process leading to commercial operation. • Coordinate terms governing approvals, notices, reporting, technical transfer protocols flowing from other Owner Agreements with utilities, insurers, lenders, sureties, neighbors, and other parties of interest to the project • Develop Precise Price and Payment terms ensuring reliable cost and cash flow controls • Articulate and coordinate Owner’s preferred commercial approach to: liability, insurance scheme, dispute resolution, choice of law, terminations, events of default and remedies, payment and performance bonding, confidentiality, warranties, among other key elements to be included in contract terms