Client Name: Sun Oil Company

MDC® was retained to review engineering, procurement and construction issues concerning the development of a coke (coal) manufacturing plant in Indiana. Our client’s damages stemmed from the differential movement of the sub-grade beneath the coke oven battery foundations and the failure of the coke ovens’ exhaust gas system to maintain adequate negative process pressures.

The contractor entered an agreement to engineer, procure and construct 1,330,000 tons per year coke making plant. This plant was to employ a proprietary coke making process that had been developed over the course of 30 years while in use at a similar plant in Virginia. The Indiana plant was constructed on land that was reclaimed during the course of 25 years by placing fill material consisting of slag, fly ash and other miscellaneous materials in an enclosure that extended into Lake Michigan.

After an extensive analysis and review of information, visiting the site and conducting research, MDC® concluded that the Contractor failed to perform its contractual obligations under the Contract; failed to engineer, procure, and construct the facility in accordance with the contract, the specifications, and the custom and practice of the industry. MDC® concluded that the Owner was entitled to be reimbursed by the Contractor and a settlement favorable to our client was reached.

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