Power plant construction contract, UK

Facts

Client: European power company

Country: UK/Switzerland

Industry: Energy

Issues

The client, an EPC contractor, approached Fenwick Elliott when it fell behind with its construction of a gas-fuelled 1200MW combined cycle heat and power plant. Fenwick Elliott was brought in to advise on the responsibility for delay and the prospects for favourably renegotiating the contract.

The first priority was to ascertain the causes of the delays. The power plant construction had suffered setbacks due to a combination of adverse weather, delayed information from the employer, employer works falling behind schedule and problems caused by underground obstructions.

The second priority was to develop with the client a strategy to settle outstanding claims and bring the project back on track.

Solutions

The first priority was to ascertain the causes of the delays. The power plant construction had suffered setbacks due to a combination of adverse weather, delayed information from the employer, employer works falling behind schedule and problems caused by underground obstructions.

The second priority was to develop with the client a strategy to settle outstanding claims and bring the project back on track.

Benefits

Fenwick Elliott’s intervention ensured that the client understood what the real causes of the delay were. Then, together with the client, we were able to formulate a negotiating strategy tailored towards securing a settlement with the employer, without the need to bring any formal claims.