capital project dispute resolution - pwc uk...capital project dispute resolution a pragmatic...
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Capital projectdispute resolution
A pragmatic approach forsecuring high quality,business driven outcomesin capital project disputes
www.pwc.com
Admiredas advisersthat adopta rigorousbusiness focusedapproach toresolve capitalproject disputesworldwide
May 2016
Capital project services
Parties are generally in disputeway before they think they are“
Daryl Walcroft, PwC US Capital
Projects and Infrastructure Principal
”
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When things go wrong in capital projects,contentious, costly disputes can sometimes beinevitable. But with the right governance andcontrols in place, contractors and owners canminimise delays and keep projects on course.
PwC’s Capital Project Services adopts a rigorousbusiness case approach to help our clientsresolve disputes. From the outset, we focus onachieving a high quality business driven outcome.That may mean resolving the dispute quickly to keepa project moving forward and costs down. Or wherethere’s a solid case, with robust evidence in support,it may mean fighting – no matter how long it takes.
It’s all about taking a big picture view and doingwhat’s best for the business. Working on more than800 infrastructure projects across the globe, we havein-depth experience in assessing owners’ andcontractors’ positions and resolving any disputes –pragmatically, rapidly and cost effectively.
Our expertise includes
Financial impact of delay, evaluationof change, project financing and debtfunding effects and loss of profits claims.
Quantum
Critical path analysis, causation,variations, prolongation, disruptionand acceleration, concurrency, float andpacing arguments.
Delay
Time is moneyFor every pound we spent with PwC preparing forthe dispute, we gained 40 through the settlement
“”
Senior Commercial Manager for a
contractor on a major airport dispute
Winning is vitalI have a lot of confidence that with PwC I have the right people whocan go to court and wipe the floor with the opposition
“”
Government sector client on a rail project dispute
Why PwC?
Individualexperts
Winninganalysis
Our team includes over 70engineers with wide ranginginternational experience ofmajor project delivery acrossall industry sectors,including: transport, oil andgas, real estate, defence andinformation technology.
Capital project disputes canarise and escalate extremelyquickly. Our global, multi-disciplinary teams can bemobilised at short noticeto help clients head offemerging threats or reactto claims quickly and regainthe initiative.
We leverage cutting-edgeforensic technologies toassist with analyses oflarge datasets and enableinnovative presentationof findings.
When disputes do occur, thequality of documentation can bekey to the outcome. Our reportsare well-structured and compelling,authored by leading practitionersand subjected to rigorous peerreview and challenge. We’re alwaysclear about what is fact and whatis opinion.
Our delay and quantumexperts have deepexperience of disputeresolution in theirspecialist industries.Their advice is priced tosuit differing budgets.
We tailor our approach to deliverrobust, defensible analysis,proportionate to the budget,presented with precision andclarity. Where appropriate, we useindustry standard methods. We canalso develop bespoke methods tosuit specific client requirements.
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Deep experience in capital projects
• ICC arbitration over delays to theUS$500m construction of 1000MWCCGT power station in the Philippines.
• Assessment of critical delays to theconstruction of a €650m 1200MWpower station in Spain.
• Arbitration over delayed construction ofan irrigation project in the Middle East.
Energy and utilities
• Advised a real estate client on therecovery of a delayed and over-budget£1bn development in the UK.
• Dispute over the delayed construction of a£750m iconic sports stadium in the UK.
• Arbitration concerning the timescale forthe development if two new townshipsin India.
Real estate
• Binding mediation regardingdelayed airport construction project inthe Middle East.
• ICC arbitration concerning the delayedconstruction of a US$400m airportterminal building in the Middle East.
• Arbitration regarding termination of aconcession to design, build and operate anew airport in the Asia Pacific region.
Airports
• ICSID arbitration regarding thedelayed construction of 28 bridges inTurkmenistan.
• Mediation regarding the delayedconstruction of an elevated highwayin Hong Kong.
• Oral evidence to a DAB regarding thecriticality of delays to the construction ofa large infrastructure project in Dublin.
Roads
• Supported the renegotiation of a multi-billioneuro military aircraft contract betweenEuropean nations and suppliers, to resolvethe underlying dispute.
• Reviewed the contractor’s estimated time andcost to complete a multi-billion poundsterling naval asset on behalf of governmentduring contract renegotiation.
Defence
• Analysed delays to the engineering andconstruction of a chemical process plantin Saudi Arabia.
• Assessment of critical delays to cementplant construction in Nigeria, enablingthe parties to negotiate a settlement.
Process
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• Dispute in Belgium regarding the delayeddevelopment of an IT project for theBelgian courts.
• Arbitration of a complex multi-partyIT implementation in the UK.
IT
• Supported the government in a publicinquiry of the causes of significantlydelayed and over-budget high-speedrail project in Asia.
• Mediation on a £300m+ railway disputein Hong Kong.
Rail
• Assessment of the critical delays caused tothe construction of a £68m luxury yacht(commissioned 74 weeks late).
• Assessment of delays and additional costsof new dock facilities in the UK.
Marine
• Review of the governance and controlsfailings that caused significant costincreases on the construction of aUS$9bn oil refinery in Russia.
• Arbitration regarding delays to theinstallation of topsides for an FPSO.
Oil & Gas
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Deep experience in capital projects
Services
• When disputes arise in capital projects, it’s always helpful to involve objective advisers who canbring a fresh view of the challenges ahead. Whether companies are dealing with an emerging threat,the early stages of a dispute or have already entered a formal procedure, we can help.
• We always deliver a level of evidential rigour, supporting analysis, effective communication andproportionality appropriate to the situation – from supporting a commercial claim to acting asan impartial expert.
Services
We carry out independent project reviews thatidentify any systemic risks and emergingthreats, as well as areas of susceptibility tocontractor claims.
We provide a range of credible experts, withinternational experience in the delay andquantum aspects of disputes. Skilled in varioussectors, our experts provide services that arepriced to suit various budgets. They are fullysupported by an experienced team.
We advise clients throughout contract-resetnegotiations and other change events.This includes analysis of delay impacts andquantum of loss, along with an assessmentof any entitlement to additional costs.
To support client’s preparation for adispute, we carry out whatever analysis isneeded to place them in the strongestpossible commercial position. This enablesthe client to make informed decisions ondispute strategy – in particular, whether itmakes business sense to proceed, or avoidthe dispute and seek a settlement.
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A global team supporting clientsworldwide
PwC’s Capital Project Disputes team helps clients worldwide to achieve business-focusedoutcomes in dispute situations. Where possible, we aim to defuse problems before theyescalate. But if negotiations fail, we bring our leading experience in dispute resolution to bearto help clients prevail.
In emerging markets we bring local knowledge of business practices, culture andregulations to bear in assisting our clients to find the best route to resolve the commercialissues they face.
Anthony Morgan
+44(0) 7710 331674
Paul Steen
+44(0) 7889 642665
David Savage
+44(0) 7786 314288
To find out more about PwC’s Capital Project Disputes team, please contact
PwC | Capital project dispute resolution | 7
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You shouldnot act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty(express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permittedby law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty ofcare for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or forany decision based on it.
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