Chinese EPC Contractor for power plant would from the time of tendering of the project, determine its intention to use Chinese Codes and Standards, considering the costs involved. Normally Chinese contractor acknowledged from early in the project a requirement to adopt the specified US codes and standards for all Key Equipment. But the Chinese codes and standards would be adopted for the Non Key Equipment. This will set out as early as in Draft Project Execution Plan.
Key Equipment refers to all high temperature/ high pressure equipment (eg high pressure pipework for both the boiler and turbine, the furnace and firing equipment, the boiler feed pump/s etc.), major equipment that is critical in the delivery of power (eg Turbine, Generator etc) and equipment that is critical in the protection of personnel safety (eg fire protection systems).
Non-Key Equipment is normally the connecting systems (eg pipework and electrical cabling), duplicated systems where there is redundancy design into the system (eg water treatment systems where there might be 2 water treatment trains capable of treating water separately etc) and other supporting systems such as sewage treatment plant, lighting etc.
Although the Chinese vendors selected for the project are, to a large extent, capable of producing the equipment and materials using US and internationally recognised codes and standards, doing so for non-Key Equipment would increase the costs of fabrication as it would require the vendors to change their existing production lines and technologies to be able to fabricate using non-Chinese codes and standards. This is because their existing production lines for the volume of work they carry out for projects within China are based on Chinese codes and standards.
In general, the equipment made in Chinese standard is much cheaper than American-Standard or international standard, such as:
“Piping in China that does not meet U.S. or international codes is significantly cheaper that piping material that meets U.S. or international codes.”