Contract structure for nuclear power projects

The UK government chose an unusual contract structure for the procurement of their programmes of civil nuclear power projects. British manufacturing and construction companies were invited to form consortia to compete for ‘turnkey’ contracts to design and supply complete power stations. The government continued with this structure until late in their second programme of projects. The results met the objective of national independence in power supply, but at a cost. This paper reviews the structure used in the UK, its evolution through two programmes of projects and lessons to be learned for new projects. The paper draws on published material, official papers, private records and reports from other countries. The most important lessons are that project sponsors should give rigorous attention to the choice of contract structure when initiating such major projects and that the structures open to them are not unique to their industry.