Client Name: Stone & Webster Engineering, Inc.
MDC® was asked to investigate and analyze a contract with Petroleum Development Oman (PDO) for the detailed engineering and construction of a gas-fired turbine electric generating plant located in Oman at Saih Rawl. The power plant was to supply electrical power to the national grid and to the adjacent gas processing plant. A waste heat recovery unit in the power plant was to provide process heat to an adjacent gas plant being constructed by others.
After our client experienced delays and significant cost overruns, negotiations were attempted but broke down. MDC® was retained to review the overall project to determine potential claims and to identify and quantify costs for possible recovery from the Owner. MDC® also reviewed and evaluated subcontractor claims.
Our client’s claims involved the consequences of defective preliminary engineering provided by PDO, which caused substantial delays and acceleration of the work. Other key issues involved owner-directed uncompensated engineering changes and owner interferences during start-up, testing and validation.
MDC® participated directly in the negotiations, which resulted in a settlement favorable to our client (S&W).