Petrochemical Dispute for Loss Adjuster

Acting on behalf of the insurance loss adjuster, Matthew was appointed to demonstrate how a contractor delay caused by poor workmanship delayed the staged commissioning of a petrochemical combined heat and power (CHP) plant.

The upstream commissioning of a petrochemical plant was delayed, which delayed the downstream M&E works contractor. The client claimed that although the plant commissioning was delayed due to a subcontractor’s poor workmanship, the contractor could not commission the CHP as no CHP fuel was available due to upstream delays. The Contractor applied for an Extension of Time to the practical completion date under the Contract and associated delay costs. The insurance loss adjuster working on behalf of the client requested us to review the EOT and associated programme for a replacement major piece of mechanical plant.

We assessed contemporaneous project records and established a detailed analysis demonstrating culpability for the delay to the CHP plant commissioning. We also undertook a tri-party detailed programme analysis for this Delayed Start-Up (DSU) claim on behalf of the insurance loss adjuster to assess culpability. Due to the nature and complexity of the logistical deadlines for the replacement of major items of plant, Matthew was requested to review the most economically advantageous option to mitigate further DSU risks.