Experience Matters

Provided analysis in defense of a $7.1 million claim brought by a mechanical erection subcontractor for increased scope, delay, extended overheads, and lost productivity on a $189 million simple cycle cogeneration plant.

On behalf of an owner, performed an assessment of a Change Order Request for Labor Productivity Impacts and Extended General Conditions Cost. The assessment revealed that the contractor did not follow the MCAA instructions on the use of MCAA’s Labor Factors found in MCAA Management Methods Manual Bulletin No. PD2 (Revised 2011). The assessment also identified that the claim for General Conditions Cost was not supported by any schedule analysis and was a total cost claim even though there were numerous executed change orders, which included a 14 percent markup for supervision, quality control, and safety.

On behalf of an insurance company, analyzed a $200 million insurance claim for non traditional coverages resulting from delays and cost overruns on the construction of an oil sands mine facility and upgrader unit in Alberta. Prepared expert witness reports in support of the ICC arbitration.

On behalf of an owner, analyzed various contractor’s delay and change order claims on a major gasoline optimization project, including modifications to an existing FCCU unit, a new alky-acid unit, an isomerization unit, a new heavy naphtha hydrotreater and continuous catalytic regeneration platformer unit, and offsites facilities modifications. Claim evaluations included an assessment of the integrity of the contractor’s baseline and schedule updates, preparation of alternative impact analysis of delays allegedly caused by scope changes as well as concurrent delays caused by the contractor. Also conducted cost support reviews for the change order amounts, recalculation of time-related costs based on delay analyses, and determination of damages based on assessment of contractual entitlements under the terms of the contract. Participated during negotiations to achieve settlement of the change order claims.

The project involved disputes among an owner, main contractor, and joint venture power island equipment supplier regarding damage to the combustion turbine (CT) caused by through projectiles in the power stream. The multi-party dispute involved both contract and insurance claims for delay, disruption, liquidated damages, and direct damage reparation works to the CT start-up operations. Managed claims team that was engaged to consult on both the contract and the insurance claims for the main contractor, which involved delay, disruption, and damages analyses for a series of settlement negotiations and mediation. Ultimately, the completion of the damaged CT works had to be factored into the process and the plant restored to full operational capability. Settlement talks ultimately succeeded, and formal litigations proceedings were avoided.

On behalf of an electrical subcontractor, evaluated delays and increased labor costs on the construction of a large highway project in Colorado.

Performed an analysis in support of an owner’s claim against an international EPC contractor’s performance, delays, and $100 million cost overrun regarding a Spar production facility that was fabricated in Finland for installation in the Gulf of Mexico. Issues involved material delays, welding rework, quadrupling of labor man-hours, wet mating of hard and soft tank/truss, delay, liquidated damages, conversion of contract issues, and related damages.

On behalf of an owner, analyzed rework costs caused by defective engineering and poor project management performance by the EPCM contractor of a LNG facility. Developed a basis for estimating the rework costs and prepared several comprehensive reports that the owner used to facilitate a large settlement against the contractor.

Prepared detailed as-planned and as-built schedule analyses for a contractor on a dam project. Participated in negotiations between the contractor and the Province of Alberta.

Prepared a contractor’s $250,000 change request for delay and disruption associated with structural, mechanical, and electrical design changes in the construction of a correctional facility.