Client: Large International Pharma and Life-Science Company
Contract size: 21 Million Euro
Dispute: Contractor submitted an unsubstantiated 5.6 Million Euro claim threatening to delay the project if not paid in full.
Targe: Project shall not be delayed, reduce claim as much as possible.
Project details: EPC contract for brownfield project including civil works and all technical systems and plants. Tie in was planned during a general plant shutdown, time was of the essence. Contractor submitted an unsubstantiated claim for additional works and acceleration measure in the amount of 5.6 Million Euro 3 month before completion threatening to delay the project by 3 months if not agreed to. Contractor severely underestimated the works initially and tried to turn a lump-sum contract into a reimbursable contract for which contractor claimed for each hour worked.
Outcome: Dispite the brute-force behaviour shown by the contractor I still managed to reduce the claim from 5.6 Million Euro to 3.5 Million Euro. The main drives for this success were the identification the contractors lack of entitlement, the lack of actual evidence of employer risk events, the identification of contractor risk events, contractor wrongdoings, and contractors failure to cover the complete project scope in a professional manner.
Topics: Claims defense, schedule analysis, condition precedence, lack of contractual entitlement.
Above picture is only a graphical representation