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Thermal Power Station Construction
Global EPC Firm
Africa

A global engineering/procurement/construction firm in conjunction with a turbine manufacturer built a $200 million 300MW combined-cycle thermal power plant in Africa.

Challenge
The EPC contractor was given a late notice to proceed, creating an initial project delay. In addition, the contractor encountered differing site conditions, owner delays, acceleration, inefficiencies, changed conditions, extra work, and force majeure events. All of these conditions resulted in significant cost overruns to the EPC contractor who sought appropriate reimbursement.



Solution
Helmes&Co was retained by the contractor to develop a comprehensive claim document against the owner and prepare the supporting schedule/delay analysis. We provided the following services:

Claim Development
Our consultants worked in conjunction with the EPC firm's project personnel and internal counsel to develop a comprehensive Request for Contract Price Adjustment. This effort involved the development and submission to the owner of 19 volumes of detailed claims analyses.

These analyses delineated the factual considerations associated with the impacts, entitlement, and damage analysis. We also developed a negotiation strategy in preparation for mediation.

Delay/Disruption/Acceleration Analysis
All aspects of the power facility were affected and the impacting events were numerous and varied. Our consultants conducted a detailed schedule analysis to establish the pricing for indirect impacts. This analysis identified:

  • Events and quantified impacts to the project schedule as a result of differing site conditions
  • Changed scope of work
  • Owner directives
  • Acceleration efforts
  • Productivity losses

We were active in the request submissions and led the development of the negotiation strategy and presentation for mediation.

Supplementary Advisory Services
We also provided advisory services on issues related to offshore piping, excessive owner representative involvement, explosion impacts, and procurement activities.

Value
The case settled favorably through pre-mediation structured negotiations.

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