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Hospital Expansion
Design Firm
USA

This hospital expansion is an ongoing $250 million effort to build a new critical care center and a new nine-story bed tower. Early phases of the six-year project included the demolition of both a power plant and the construction of a new $63 million energy plant on the hospital campus.

Challenge
After construction of the bed tower was well underway, it was determined that each of the nine floor slabs, previously placed, contained the same design error, which negatively affected the structural integrity of the tower. While construction was still taking place, the contractor issued a $15 million claim against the designer.

Solution
The designer retained Helmes&Co to review, analyze, and negotiate several components of the contractor's claim, which involved:

  • Performing a schedule analysis to evaluate the $5 million portion of the claim submitted to address the contractor and subcontractor delay-related costs
  • Negotiating approximately $6 million of costs for the revised subcontractor work and rework without causing any additional delays to the project
  • Evaluating $4 million of submitted costs to perform the direct remedial work to resolve the design deficiency

Helmes&Co reviewed all subcontractor cost proposals to perform the remedial work and to resequence their originally planned work to mitigate the delays caused by the design error. This process was successfully completed in a timely manner and the work proceeded throughout the negotiating period.

Value
The contractor's original claim was approximately $15 million with a potential to grow to a much greater amount due to the qualifications and exclusions included in the contractor and subcontractor proposals. As a result of Helmes&Co's efforts, the final total amount paid on this claim was less than $8 million.

Note: To ensure client confidentiality is maintained, certain project details have been sanitized.