Experience Matters

The executive management of this EPC contractor desired to make its project financial forecasting more robust after suffering a number of project write-downs. After verifying that these write-downs were more than an accounting exercise, the EPC contractor wanted an independent third party to evaluate its bidding and execution practices, benchmark them against industry practices, and develop an integrated project risk management/project governance system that executive management could rely upon. Engaged to evaluate the written procedures and practices of each of the four divisions against industry practices. After the steps required to make those procedures and practices more robust were defined, the team worked with the client to revise the procedures and adjust its practices to make the output of the bidding and execution processes more reliable and transparent to management. This work also involved developing a client custom project governance program to identify high-risk bids and projects during execution and define the tools/staff needed to address these high-risk situations.

On behalf of an owner, performed a detailed schedule quality assurance review of the engineering, procurement, construction, commissioning and start-up activities of a central processing facility (CPF). The CPF consisted of utilities, inlet separation, two oil trains, associated gas compressors, natural gas liquids and injection gas units. Identified logic problems and overuse of constraints, which made the indicated critical and near-critical paths questionable.

Provided a claims prevention training seminar for project management, contract administration, and legal personnel of a major U.S. oil company.

On behalf of an owner, analyzed entitlement, schedule delay and damages related to a contractor’s $12 million claim against a major international chemical company associated with the construction of two process units in an existing chemical plant. The initial EPC contractor was terminated and sought recovery of its cost overruns as a result of field change orders. The owner alleged that the work was defective as a result of engineering errors, field installation errors, and welding defects.

On behalf of an owner, reviewed a contractor’s expert’s schedule delay analysis and damages claim for a wastewater treatment project.  Reviewed the as-planned and as-built schedules, impacted as-built schedule, delay issues, bid data, labor cost overrun data, damages calculations, and project correspondence.  Prepared observations and findings and a draft letter response from the owner to the contractor regarding claim.

The project centered on the installation of a 230 kV transmission line: 24 miles underground and 3.5 miles overhead, through an extremely diverse and environmentally sensitive and challenged series of districts. The major infrastructure subcontractor alleged major delay and disruption impacts caused by the main contractor. Engaged to provide claim support services to the main contractor against the subcontractor’s claims. Prepared a defense position paper involving a CPM analysis, disruption analysis, and contract entitlement to rebut the subcontractor’s expert report, which ultimately resulted in mediation proceedings and a series of settlement negotiations. Also provided claims avoidance training and lessons learned reviews to the main contractor construction team to facilitate improved management of future similar projects.

On behalf of a contractor, analyzed schedule delays on a naval facility electrical substation project including: outage delays, switchgear design deficiencies, SCADA design deficiencies, and ground mat deficiencies.

Provided technical and project management consulting advice to the project management consultant who represented the owner of a refinery in Russia that was undergoing a revamp. Additional advice included the identification of key performance indicators and EPC contracting issues.

On behalf of a contractor, analyzed an EPC contractor’s change order and delay claims on a chemical plant project.

On behalf of an owner, evaluated outstanding contractual payments, unresolved change orders, and alleged delay costs alleged by a contractor for the fabrication, transportation, and installation of Pipeline End Terminations and Jumpers for an offshore oil production facility.