Case Studies

Power Generation - Delay Analysis & Dispute Resolution

J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts

Read More close Created with Sketch.

The Situation

The project involved developing a new combined heat and power plant in Eastern Europe. The scope of work included the supply, installation, commissioning, and trial run of a circulating fluidized bed (CFB) boiler plant designed to produce power from waste refuse-derived fuel, biomass, and bituminous coal.

The dispute between the parties relates to the causes of the delay in the milestones of the boiler being ready for the first steam to turbine and taking over. The progress on the project was primarily according to plan, with a limited critical delay before the client’s notification of the boiler ready for the first steam to turbine. From that date, the hot commissioning activities were continually disrupted, with the trial run starting significantly later than the planned date under the contract.

The plant owner claimed that due to several design and construction errors, our client failed to complete the commissioning of the boiler on time. The owner claimed liquidated damages for the delay caused.

How We Advised

J.S. Held was instructed by counsel for the client to provide an independent expert opinion for causes of delay to the key milestone of “Boiler Ready for First Steam to Turbine” and to the overall completion time by applying an appropriate delay analysis methodology. The instruction additionally covered expert opinion for the quantum of claims raised by our client.

J.S. Held prepared a delay analysis, identifying the delay events for which the owner was responsible and assessed their impact on the progress of the works. Likewise, our team verified delay events allegedly attributable to our client. We further prepared an impact analysis of the identified and verified delay events on the critical path of the project.

Finally, our team prepared a quantum analysis, verifying the calculations of our client’s counterclaims and the substantive evidence regarding own costs incurred and costs derived from prolongation (site and head office overheads).

Based on our analysis and opinion, our client reached an amicable settlement before issuing an arbitral award. Our client felt comfortable engaging in settlement discussions with the owner, backed up by our assessment and substantive argumentation about the claims and counterclaims raised by the parties.

Key Contact

Viktor Warkentin
Senior Managing Director
Construction Advisory
+49 611 71186757
[email protected]

Related Practice Areas

> 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.

> Dispute Resolution & International Arbitration
Our experts support clients in the resolution of challenging issues that can arise in engineering and construction projects, through all forms of dispute resolution. We have an unwavering commitment to delivering the news in clear, defensible analysis and testimony addressing the issues at hand.

Our Experts