Experience Matters

Performed expert analysis reviews pertaining to a dispute in relation to the construction of a Steam Assisted Gravity Drainage (SAGD) oil sands extraction project in northern Alberta.

On behalf of an owner, performed a schedule quality assurance review and schedule risk assessment of the integrated master schedule for a $14 billion oil sands project.

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.

Lead cost and schedule consultant retained by a group of insurance companies to evaluate the reasonableness of a $200 million cost estimate and cost/schedule risks associated with the repair of fire damage to four electrostatic precipitators and enclosures in a large oil sands plant in Alberta. The engagement involved site visits, interviews, and the evaluation of rebuild cost and schedule estimates and supporting documentation, with particular emphasis on assumptions, construction means and methods, labor costs and productivity, field indirect costs, contingency, and expediting and delay costs. Final work products included written reports, which addressed the bases for and reasonableness of the repair schedule and cost estimate, and the cost impact of several expedited repair schedule alternatives, and oral presentations to loss adjusters and insurance company representatives.

On behalf of interested underwriters, performed cost and data analysis and prepared an expert report for an insurance adjuster. The claim related to a fire loss that was the result of a line failure that caused an oil-based thinning agent to leak at a bitumen upgrader settling basin. The loss occurred for one of the largest operators in the Canadian oil sands industry and its joint venture companies. The facility is an embankment dam that was, by volume of construction material, the largest earth structure in the world in 2001.

On behalf of an owner, performed an in-depth integrated cost and schedule risk analysis for a CAD$14 billion oil sands project. Added logic ties and key interface milestone details into the Level II schedule to develop a Risk Analysis Schedule. Provided an assessment as to whether the current schedule and cost forecast was achievable. Provided a “to go” risk analysis on schedule and cost for each project area as well as an assessment of the overall cost (including indirects) and schedule risks. Evaluated current trends in the schedule and cost forecast including field productivity effects. Reviewed the project control processes, provided an assessment including: evaluation of systems/flow of data from EPCs/GCs to the owner, change management processes, and contracts processes for back-charging and processing of claims. Reviewed how material quantities were being managed. Delivered recommendations to further de-risk and improve the probability of achieving project goals.

On behalf of an insurance company, analyzed a $500 million claim for business interruption losses due to delays to the startup and commissioning of an upgrader refinery that was built to process synthetic crude oil from an oil sands production facility. The delays were allegedly caused by a fire at the oil sands production mine site, which delayed the transport of bitumen to the refinery through a 200-plus-mile pipeline. Prepared detailed CPM schedule analyses and an expert witness report. Designated as a CPM expert witness in support of the ICC arbitration in Alberta.

Analyzed a major fire at an upgrader in Alberta that processed synthetic crude oil from an oil sands facility. The client, a major construction company and its insurer, was defending against liability for property damage and business interruption damages totaling $1 billion.