Success Stories

Delay in plant construction project

Delivery of electrical equipment for approx. 80 million € to North Africa for installation in buildings, which the customer had contracted out to a developer. Due to the delay of the developer of 8 months, the contractor of the electrical equipment suffered considerable damage. Due to public statements of politically responsible persons, the presentation of a delay claim would not be successful.

Deliverables: Documentation and costing of additional expenses to determine claim volume. Development of a strategy to enforce a politically acceptable argumentation to obtain compensation for the additional expenses.

Result: Increase in contract value by €2.5 million.

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Delayed delivery of plant construction project

Delivery of electrical equipment for approx. €80 million to North Africa for installation in buildings which the customer has subcontracted to a developer. The delay of 8 months by the developer caused considerable damage to the contractor of the electrical equipment. Due to public statements of politically responsible persons, the enforcement of a justified delay claim would only be possible via court proceedings.

Deliverables: Documentation and calculation of additional expenses to determine claim volume. Development of a strategy to enforce a politically acceptable argumentation to obtain compensation for the additional expenses. Conducting on-site negotiations with representatives of the responsible energy ministry.

Result: Increase of the contract value by € 2.5 million.

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Delay in delivery of hydropower plant in the Himalayas

Supply of electrical equipment for a hydropower plant worth approx. €20 million. Ground problems led to an extension of construction time by 2.2 years. High demands on documentation and proofs as it was a project financed by the World Bank.

Services: Documentation and calculation of additional expenses to determine claim volume. Preparation of court-proof evidence. Preparation and presentation of the claim document. Conducting on-site negotiations to enforce the claim.

Result: Increase in contract value by € 3.2 million.

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Suspension of a project for 3.5 years due to financing problems.

Delivery of components for an industrial plant in Brazil to a general contractor with a contract value of approx. € 1.5 million. Suspension of the project by the general contractor after payment difficulties of the end customer over 3.5 years led to additional expenses for the contractor.

Deliverables: Drafting of claims enforcement strategy. Drafting of formal correspondence. Documentation and calculation of additional expenses. Drafting the claim to the general contractor. Presentation and negotiation of the claim with the general contractor.

Result: increase of the contract value by 150 T€.

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Incorrect load specifications of the contractor for a reactor

Contractually binding load specifications for the manufacture of a reactor were considerably exceeded by the subcontractor. The result was considerable additional costs in the context of transport and erection, as planned routes, means of transport and cranes had to be additionally procured.

Deliverables: Elaboration of the basis for the claim. Compilation of evidence and documents. Preparation of the claim. Presentation of the claim to the subcontractor.

Result: Compensation of additional costs in the amount of 650 T€.

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Arbitration proceedings in South Africa

Poor performance of a subcontractor in the context of steel construction services leads to additional costs and delayed deadlines. To cover up the financial situation, a formal claim for €25 million was filed by the same subcontractor on the basis of false allegations.

Services: Development of a defense strategy and preparation of evidence to defend the incoming claim. Development of an enforcement strategy for additional expenses and damages due to the misdirection. Development of evidence and documentation in an expert report for the arbitration proceedings in South Africa.

Result: Defense of the incoming claim. Enforcement of own claim for € 5 million due to the poor performance.

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Project suspension due to technical problems of a contractor

Supply of auxiliary systems for a plant construction project worth approx. €25 million. Suspension of the project due to technical problems of another company over1,5 years.

Services: Development of the basis for the claim and preparation of the claim. Negotiation with the customer about compensation of the additional expenses.

Result: Increase in contract value by €2.8 million.

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Delay of the contractor due to many changes

Delivery of a plant construction project to a major corporation that continuously demanded changes to the execution. Insufficient change management on the part of the contractor at the time of the change resulted in delayed delivery and considerable additional expense due to acceleration measures. Purchaser finally demanded the contractual penalty of €3 million due to the delay in delivery.

Services: Analysis of existing documents and records to develop a basis of claim for extension of deadline. Development of a strategy to defend the customer's claim and enforce own claim for compensation of additional expenses due to delay and acceleration.

Result: defense of delay penalty and enforcement of €1.5 million for deadline delay.

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Delay in delivery by the customer in India

Delay in a plant construction project in India for which the purchaser was responsible. Difficult basis for claim, as the purchaser demanded a separate, complex contract with maximum exclusions. Significant additional work due to lack of and late cooperation by the purchaser.

Deliverables: Analysis of contracts to identify a basis of claim to compensate for the additional expense. Development of a strategy to enforce own claims. Preparation of a claim documentation to enforce the additional expenses.

Result: Increase in contract value by €0.8 million and award credit for a future project of €1.5 million.

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Contract management for a plant construction project

Assignment as contract manager in a major international project (>€1 billion).

Services: Advising project management and sub-project managers on contract interpretation regarding delivery and performance obligations. Regular coordination of strategies for defense against claims and enforcement of own claims in an international team of lawyers and project managers. Draft commercial correspondence for project management and lead contract negotiations with subcontractors.