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Transportation >
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Yanpet Ethylene Plant
Saudi Arabia
Engaged by ABB Lummus, the project Lump Sum
Turnkey, Design-Build Contractor, to prepare
expert analyses relative to delays and changes on this ethylene
plant in Saudi Arabia. The Project included various structures and
heater systems. The scope of the Project was impacted due to
client’s actions throughout the execution period. After evaluating the extent and nature of performance deviations
including the impact of equipment delivery to project and
construction schedule, a comprehensive schedule
delay analysis and disruption impact analysis was prepared. Our
analyses were employed by the parties to reach an amicable
settlement.
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Ethylene Plant
Taft, Louisiana,
USA
Engaged by the EPCM, Stone & Webster (SWEC),
to provide Dispute Resolution Services and expert analyses in the
defense and assertion of claims against the Owner, Union Carbide,
on a new Ethylene Plant in Louisiana. Excessive costs and schedule
delays were incurred, which the Owner alleged were the result of
SWEC deficiencies in project design, procurement and execution.
The Owner further alleged misrepresentation and fraud by the
engineering team. We performed a Phase I analysis to
evaluate the primary issues that led to project delays, changes
and cost overruns. The expert analysis included an
evaluation of SWEC’s design development process, conceptual and
detailed design adequacy, performance delays, causation /
responsibility, and damage quantification. Based upon our
findings, a framework was developed for SWEC’s project management
team to perform a more detailed analysis.
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Energy S.r.l. Integrated
Gasification
Combined-Cycle Power Plant Priolo Gargallo
Siracusa, Sicily, Italy
Engaged by
Consorzio Snamprogetti-Foster Wheeler-Energy (SFW) to prepare expert analyses in support of its
claims regarding the heavy oil Integrated Gasification
Combined-Cycle Project located in Sicily, Italy. This multi-unit
plant is owned and operated by ERG Petroli S.p.A. (the refining
arm of the Italian energy company ENI), and Mission Energy
International, through a joint venture known as ISAB. It is
designed to process, in an environmentally acceptable manner,
high sulphur residues from the nearby ERG refinery, to produce
500 MW electrical power and to process steam. We analyzed SFW’s
project management and issues of delay, acceleration, disruption
and cost quantification. Further evaluations were necessary into ISAB allegations of SFW design
errors, omissions and impacts and ISAB’s project management.
Results of our expert analyses were presented in
testimony at an UNCITRAL Arbitration in Geneva. All remaining
issues of Quantum were settled prior to the Tribunal’s decision.
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BASF/Fina Steam Cracker
Orange, Texas, USA
Engaged to provide Dispute Resolution
Services and expert analyses on behalf of the Design-Build E&C
Contractor, ABB Lummus Global, regarding schedule and cost
issues on the construction of the largest steam cracker in the
world. Following initial delays in ABB’s detailed engineering,
ABB entered into an agreement with the Subcontractor for
non-long lead equipment procurement, construction and
installation, for an extension of time and all impacts that had
previously been incurred during procurement, including delays,
acceleration and disruption costs. The Subcontractor proceeded
to incur further delays and increased performance costs for
structural steel erection and mechanical, electrical,
instrumentation, control and commissioning works; the costs of
which the Subcontractor sought recovery from ABB.
We evaluated the root causes of the delays,
disruption and cost impacts to claimed by the Subcontractor and
prepared ABB’s response and counterclaims of project
mismanagement, safety and workmanship issues, and labor
resources and productivity problems. Our expert
report was employed in the ensuing mediation to successfully
negotiate a settlement of all issues in this matter.
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Tupras CCR – ISO Refinery
Izmir, Turkey
Foster Wheeler Italiano (FWIt) was the Lump Sum Turnkey (LSTK)
Contractor for the design, supply of equipment and materials,
construction, training, commissioning and fulfilling acceptance
requirements of the CCR Reforming and Isomerization Units
Project at the Tupras Refinery in Izmir, Turkey. The LSTK,
28-month Project had a lump sum contract value of US$161
million. We were engaged by FW to perform expert
evaluations of FWIt impacts of US$13.5 million and two months
relief for delay from Force Majeure events (earthquakes),
engineering changes and onerous contract application by the
Owner. Our independent efforts strengthened the
presentation of the FWIt requests for use in negotiating
settlements with the Owner.
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PET Production Plants
Rotterdam, Holland
San Roque, Spain
Buenos Aires, Argentina
Foster Wheeler Iberia (FWIb) was contracted by Eastman Chemical
Corporation (ECC) to undertake a Program of PET Production
Plants around the world. The only three plants executed were in
Rotterdam, Holland; San Roque, Spain; and Buenos Aires,
Argentina. The Spain Plant was based on ECC-prepared Basic
Design employing ECC technology on a Lump Sum Turnkey basis. The
Holland and Argentina plants were to employ the same design and
have lump sum prices based on the Spain Plant design and bid
(using an open book estimate). All three plants had extensive
ECC-directed changes that eliminated the duplication concept,
caused delay, and significantly increased costs. We were engaged by FWIb to prepare expert analyses in International
Chamber of Commerce (ICC) Arbitration.
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