Value: $12+ Billion

Location: North America

Services: Delay Analysis, Loss of Productivity Analysis, Quantum of Damages

Problem:

Delta Consulting Group’s scheduling and construction claims specialists were retained to work on one of the world’s largest construction projects on behalf of the joint venture (“JV”) team constructing the project. The JV was ramping-up material and labor forces approximately halfway through the completion of the EPC project.  As the ramp-up was significantly underway, a Category 4 hurricane struck the coastal facility, decimating the regional supply chain, on-site material, and labor force, causing wide-spread destruction to the area and eventually becoming one of the costliest hurricanes in the history of North America. Well-over a year and tremendous resources were expended to remedy the impacts and get the project completed as quickly as possible.

Our experts performed a schedule and productivity analyses on the project impacts that occurred as a result of the hurricane, as well as quantify the damages resulting from those impacts.

Solution:

Delta analyzed the contemporaneous project schedules to measure the delays occurring to each LNG train in the facility, along with the delays to other major areas of the project. This involved a detailed forensic review of the engineering, supply chain, fabrication, and construction progress to determine pre-and-post impact status of the work and whether the JV was ready to achieve the work in the manner illustrated in the schedule. Delta supported its conclusions using charts, timelines, and other graphics to simplify the explanation of the how each of these facets was impacted, and how it delayed the overall project. Delta’s experts also analyzed the amount of additional and out-of-sequence work performed; the added management and direct field resources to accelerate the hurricane recovery effort, along with the resulting acceleration of supply chain, fabrication, and on-site construction to mitigate the damages. 

In addition, Delta used the historical productivity and performance information to determine the productivity losses incurred after the storm, quantifying the additional labor and equipment expended while the JV concurrently remedied the damages and re-started the construction effort.

Delta’s work product was used for time extension submissions to the facility owner, along with additional cost requests to both the facility owner and insurance companies. Delta’s team also assisted not only in the analytical aspects of the project, but also worked with the insurance companies and its advisors to expedite recovery for the JV.

Outcome: 

Delta’s work product helped the client recover large settlements with both entities.