Business case
Our client, a global supplier of plant and equipment for the metallurgical industry, was awarded a €1 billion contract for the design, engineering, supply, supervision and commissioning of a new ferroalloy plant at an existing industrial site. The project encountered issues related to alleged flaws in design, engineering and construction supervision, resulting in claims for lost profits and remedial costs. The dispute led to arbitration proceedings under ICC rules.
Our mandate involved reviewing the opposing party’s financial model and performing a thorough critique, conducting sensitivity analyses to test the financial impact of key assumptions – particularly around the effect of additional supply on commodity prices – and evaluating the timing and financial consequences of raw material shortfalls.
We were appointed as independent experts to respond to the claimant’s damages assessment, which included both a loss of profits claim and a claim for remedial costs. We developed a detailed model to quantify the financial impact of internal raw material constraints and reviewed the credibility of claimed remedial costs. Our work also included a careful analysis of the contractual framework underlying the alleged breaches. We submitted two expert reports during the arbitration proceedings and provided continuous support to our client’s legal team throughout the process, reinforcing the defence with robust technical and financial arguments.