process > Industrial

JSR Photo Resist Production Plant
Sunnyvale, California, USA

Nielsen-Wurster was engaged by Chiyoda, USA, the EPC Contractor, to provide expert analyses regarding a large greenfield plant contract to duplicate JSR’s Japan production facility, but in California. The Project included demolition and clearing of an occupied site, engineering, construction and commissioning of a new plant. Facilities included the process and production plant with strict “clean room” requirements, chemical storage facilities, warehouse, support facilities and the company’s U.S. headquarters office building. Matters at issue included delay and acceleration, costs thereof, changes in the turnkey design requirements forcing untimely engineering and equipment procurement delays, workmanship issues, U.S. versus Japanese vendor equipment quality, and untimely interfacing of Owner-supplied production equipment. Nielsen-Wurster evaluated all the in-house claim materials prepared by Chiyoda, supervised revisions and improvements, prepared the negotiating team at the Project level and at the executive level for the negotiations, which were successful.

Palmetto Lime Facility
Charleston, South Carolina, USA

Nielsen-Wurster was retained by the EPC Contractor in a dispute over changes in design, and other issues, with the joint-venture Owners of this new industrial lime production facility. The EPC Contractor was retained to engineer, procure and construct the entire facility with the exception of the kiln design, which was subcontracted by the Owner to a German-based company. The plant was the only one of its kind in the Southeastern U.S. and had an initial annual capacity of 280,000 tons of lime per year. During the course of the project, the joint venture Owners changed names and parties several times, resulting in continuous Owner-initiated changes in process and design development. Maintaining startup of the plant upon completion, the Owner produced product above and beyond the planned capacity for the plant. In August 2000, the plant was shut down for emissions noncompliance, resulting from alleged dust collection problems. Nielsen-Wurster performed a detailed schedule delay analysis and labor productivity evaluation to assess the impact of various design changes to the overall project execution. The analyses entailed a comprehensive review of changes to the process that were implemented as a result of a change in plant ownership. Nielsen-Wurster’s analyses were used as the basis for cost and damages quantification that enabled the parties to reach a settlement.

Linden Recycling Facility
Linden, New Jersey, USA

Nielsen-Wurster was retained to review and evaluate claims asserted by the Contractor on the expansion projects for this facility. The claims were primarily due to work scope changes and owner interference as well as delays and wrongful termination. The contract was terminated due to inability to complete the work in a timely fashion. Nielsen-Wurster analyzed and reviewed documents and conducted interviews with project personnel determining that the work had not progressed due to inability of the Contractor to manage the Subcontractors. Also, the analysis demonstrated that the mechanical contractors work scope was underestimated at the time of bidding. Nielsen-Wurster performed a detailed estimate analysis on the HVAC work within the buildings. The project management was evaluated and the impact of changes on the work scope was clearly defined. A favorable settlement was reached.

Lyophilization Project
North Brunswick, New Jersey, USA

The Lyophilization Project involved the retrofitting of existing procession area to support new Lyophilization (freeze dryer) equipment and related processing lines. Squibb purchased the freeze dryer and the Contractor had the responsibility to design and build the remaining facility. Nielsen-Wurster was retained to review cost increases prior to contract completion in advance of any formal claim submittal. At the onset of the project, it was estimated to cost $15 million. Completion costs were estimated at $23 million. Issues included unacceptable engineering, poor planning, error and omissions, interferences, equipment procurement and under manning. Nielsen-Wurster performed an overall evaluation of the Design-Build Contractor's performance to determine the actual project issues and reasons for cost increases. Based on our analysis, Nielsen-Wurster recommended the payment amount to be released to the subcontractors and assisted in the contract closeout negotiations.

Zinc Recovery Plant
El Centro, California, USA

Nielsen-Wurster was engaged by the owner to perform a review and analysis of a delay claim submitted by the Contractor on a new commercial Zinc Recovery project. The Owner had terminated the Contractor after significant delays to the project. The project, which was located at four discrete sites within, or near, operating geothermal electric power plants, was alleged by the Contractor to have been subjected to delays from the presence in the feed brine of solid material that ultimately required modifications to the IX system. Nielsen-Wurster was retained to perform a detailed delay analysis to determine if these modifications actually caused the delay to the project and/or whether other causes of delay occurred over the course of the Project. In addition, Nielsen-Wurster was requested to opine on whether the Project achieved mechanical completion and if not, why not. The mechanical completion was tied to contractual liquidated damages to be assessed. Based on Nielsen-Wurster’s analysis, the matter was settled.

Chemical Recovery System at Pulp & Paper Mill
Columbus, Mississippi, USA

Nielsen-Wurster provided consultative advice to the senior managers of this construction Project. Weyerhaeuser had contracted with a Contractor for the design, supply of equipment and materials, construction, training, commissioning and fulfilling acceptance requirement of a Chemical Recovery System at Weyerhaeuser’s Columbus Pulp Mill located in Columbus, Mississippi. The work was performed under a lump sum contract for an approximate two-year contract. The Contractor filed for an approximate $5.7 million claim and one month relief for delay due to steel fabrication and delivery. Nielsen-Wurster advised the management team regarding productivity issues, critical path items, and concurrency to address and resolve contract disputes as they occurred during the Project. With Nielsen-Wurster’s assistance, Weyerhaeuser was successful in negotiating the dispute and arriving at a mutual settlement agreement. 

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