Our client, a global EPC contractor, entered an agreement to construct off-site facilities associated with an $8bn greenfield oil refinery project in the Middle East. The project incurred significant delays and the contractor failed to achieve contractual milestones. Due to uncertainty about the strength of its position and growing concerns about mounting financial losses, including exposure to delay damages, the contractor initiated commercial negotiations with the owner to obtain extensions of time and recover any associated compensation.
Accuracy’s Delay and Quantum team collaborated closely to provide the client with a coordinated and complete solution across the delay, disruption and prolongation topics. We conducted quantitative analyses to assess criticality and the accrual of delay over time as well as detailed productivity analyses, by sub-package, discipline and sub-contract. We sought commonality across factual topics to avoid duplication of effort in demonstrating causation. We adopted well-established methodologies to provide the client with preliminary findings to inform its negotiation stance and support part of its claim valued at $174m. Notwithstanding the preliminary nature of our work, we managed to produce findings that were both robust and sustainable. We accompanied our reports with suitably organised supporting documentation, meeting arbitration standards.
