Case Study: Commercial, Contract, and Claims Services

Overview

The Project was a 6,000 tonne per day greenfield cement plan including a 45MW Power Plant.

Project Value $500,000,000.

Appointed to provide construction claims services on a disputed final account.

Key Facts

  • The Client and end-user is a major cement producer in Nigeria.
  • The Project duration was 34 months.

The Challenge

  • The Main Contractor had submitted a Final Account Application that was a 33% increase on the Contract Sum
  • The Main Contractor claims comprised uncertified works, an extension of time for completion, acceleration costs, disruption costs, prolongation costs, and instructed/variations to contract works.
  • The Client was unable to validate the Main
  • Contractor’s Final Account Application, and this led to a long-standing dispute regarding the valuation of the Final Account.
  • Significant legal costs were being incurred while this dispute continued.

Our Solution

  • We reviewed the Main Contractor’s Final Account Application and undertook validation of ambiguous quantities or items with significant variance from contract quantities.
  • Developed a chronology of events for an understanding of key influencing issues that arose on the project and provided assistance to the Engineer for contractual correspondence.
  • Prepared a detailed Employer’s Claim with contractual entitlement, delay analysis, cost calculations, verified 3rd party assessments, and a validated Final Account sum.


Case Study: Project Management and Project Recovery

Overview

The Project was a 6,000 tonne per day greenfield cement plan.

Project Value $500,000,000.

Appointed to provide project / contractual consultancy services, which later involved being appointed the Project Manager for project delivery.

Key Facts

  • The Client and end-user is a major cement producer in Nigeria.
  • Main works were awarded and involved industry leading specialist providers.
  • The Project duration was scheduled to be 32 months.

The Challenge

  • Significant design changes had occurred early in the project and it was evident these had been inadequately co-ordinated with the relevant stakeholders.
  • Design co-ordination issues were preventing adequate planning and forecast a 6-month delay to completion.
  • The master programme did not reflect the scope and timing of activities to deliver the project.
  • Significant delays were forecast.

Our Solution

  • We identified the cause of the issues as a decision to lower the entire plant, evaluated the cost & time impact and developed cohesive mitigation strategies.
  • Understood the risks and issues through stakeholder workshops, developed effective processes and procedures, and communicated and monitored the implementation of these revised ways of working.
  • Revised the Master Programme, in co-ordination with Contractor programmes, and developed a contractually acceptable and commercially beneficial project recovery strategy and plan.
  • Developed and managed a revised Master Programme that incorporated the project scope and revised Contractor programmes.



Case Study: Contract Drafting & Negotiation

Overview

The Project w as a 3,300 tonne per day brownfield cement plant.

Project Value $350,000,000.

Appointed for contract preparation and negotiation till contract signature.

Key Facts

  • The Client and end-user is a major cement producer in Nigeria.
  • The Project was to increase the cement output capacity from 1,000 tonnes per day to 4,300 tonnes per day.
  • Contract finalisation was urgently required.

The Challenge 

  • To draft and negotiate the terms of a FIDIC 1999 EPC (Silver Book) Contract with nominated Contractor where the price was already agreed.

Our Solution

  • We identified the requirements of the Employer for the Project, in co-ordination with the Employer’s team responsible for operating the plant and captured these criteria in a high-priority contractual document called the Employer’s Requirements.
  • Drafted the Particular Conditions of Contract in full recognition of the Employer’s Requirements, and in keeping with the FIDIC 1999 EPC risk proportioning.
  • Agreed a negotiation timetable with the Contractor and utilised electronic means of communication for an effective use of time.
  • Prepared a contract administration guide specific to the agreed terms of conditions for use by the Employer.