Case Studies
A fire occurred within a reformer of a chemical plant in KSA, resulting in a plant-wide shutdown. Accordingly, the Insured instigated a work program that included repair work (RW) (work required to repair the damage caused by the fire) and turnaround work (TAR) (work always required to be undertaken during a planned shutdown and which has now been completed concurrently with the repair work).
The impact of the fire was twofold. First, it caused the requirement to undertake the repair work. Second, it has resulted in the TAR work to be rescheduled, i.e., completed earlier in the year than planned.
The Insured claimed under the operational policy for losses incurred during this period of business interruption. We were instructed to calculate the net period the plant was shut down due to the damage caused by the fire.
To undertake our instructions, we modified the owner’s baseline program to enable us to assess the critical path and use it to prepare an as-built schedule. It also more accurately categorized work as either RW or TAR, and we calculated a planned shutdown for 90 days.
We then undertook a delay analysis to ascertain the net period of interruption caused by the fire and the requirement to repair the damaged work. To do this, we produced a Windows analysis and a final as-built schedule analysis. This helped ascertain that the original shutdown period increased from 90 days to 150 days, some of which were caused by the owner and unrelated to the fire damage.
Our analysis determined the net shutdown period that excluded planned TAR work and the owner’s other unrelated delays. Using this approach, we calculated the net as-built period the owner took to repair and reinstate the plant following the fire/damage.
This enabled the Insured and Insurers to reach a mutually agreeable settlement.
Joseph Bond, Llb, PGDip
Senior Managing Director
Construction Insurance Claims Services
+44 20 3334 9512
[email protected]
> Construction Scheduling & Planning
J.S. Held provides unrivaled expertise in schedule development and analysis in all aspects of construction scheduling from project planning through dispute resolution. Complexity in construction projects calls for in-depth knowledge of project planning to develop efficient and effective schedules. We provide project support throughout planning, scheduling, and, if needed, dispute resolution.
> Construction Insurance Claims Services
We have a dedicated team of experts that have consulted on and testified in complex matters involving buildings and infrastructure that have been damaged during the course of construction. Our team of global experts calls upon decades of technical field experience working for many of the largest commercial contractors in the world. We have specialized expertise in delay analysis, schedule review, construction contract interpretation, repair cost review, and estimating.