Experience Matters

Assisted a mechanical contractor in a $7 million dispute with an EPC contractor over additional costs associated with delays, disruptions and loss of productivity on a 300 MW combined cycle power plant. Disputed items included: 1) changes in the scope of work, 2) late delivery of EPC contractor-supplied materials and equipment, and 3) late delivery of necessary design information.

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.

Provided CPM scheduling on the Molton section of the $800 million San Joaquin Hills Transportation Corridor project in Irvine. This project had over 100 new CIP bridge structures, miles of driven piles, retaining walls, and storm drains, in addition to over 1 million CY of cut/fill earthwork. The Molton Section “Working Schedule” included 1,544 activities.

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

Evaluated an owner’s project management and cost and schedule control procedures for performing major capital projects. Prepared stage gate project development procedures as well as created cost and schedule control procedures.

Reviewed an owner’s contract for the EPC of a polyethylene plant. Recommended clauses to resolve potential inconsistencies, ambiguities, and conflicts. Prepared clauses for cost and schedule control procedures. Recommended changes to project management, scheduling, and project controls provisions to improve the owner’s visibility into project progress reporting.

On behalf of an EPC contractor, analyzed an owner’s $19 million claim firm relative to home office and field cost budget overruns under a reimbursable contract for a $200 million refinery project.

Analyzed a contractor’s delay and disruption claim against the owner of a 3x1 combined cycle power plant in Philadelphia. The scope of the work included a detailed CPM schedule analysis to determine delay and acceleration responsibility.

Analyzed the expediting costs associated with the $320 million rebuild of a refinery in Alberta following a fire. Performed this work in support of an insurance company’s interest on a property damage claim that the refinery owner filed. Analyzed the trade-offs of increased time-related costs that would have been incurred had the work not been expedited compared to the increased costs as a result of a fast track schedule. Evaluated the results of the various scenarios using Monte Carlo calculations to derive a probabilistic determination of the range of costs as a function of the variables involved in the analyses. Analyses contributed to a successful settlement between the insurance carrier and the owner.

On behalf of a paint manufacturer, prepared an expert report refuting an EPC contractor’s claim for delay and disruption allegedly resulting from work associated with removal of lead-containing paint from the process plant modules and platforms of an offshore oil production facility installed in the Gulf of Mexico. Case settled prior to trial. The project also involved the defense against the owner’s delay claim for recovery of lost profits due to the delay to the achievement of first oil allegedly caused by the lead abatement program. Presented an expert report demonstrating that the project would have been delayed because of concurrent delay by the EPC contractor. Testified in deposition, which resulted in a successful settlement of the dispute.