Client Name: Black & Veatch

MDC® was retained by our client to determine if the utility had contributed in any material way to the problems associated with either the removal or installation of the new generators. MDC® developed a detailed analysis of the problems encountered during the execution of the removal and installation work. MDC® determined that much of the delay in the installation of the generators was due to delay by a subcontractor responsible to Raytheon. MDC® also determined that additional delays were the result of inadequate verification by the contractor. Thus, the majority of the underlying conditions that caused the excess costs were not due to problems created by our client.

Our client contracted with a nuclear service company to remove the existing steam generators and transport and install the new units. During the course of installation, a number of conditions arose that the contractor believed were outside the scope of its responsibility and formed the basis for additional compensation. Upon close-out of the project, the contractor sent our client a request for additional compensation totaling $6 million. The contractor identified “unforeseeable” field conditions, lost productivity and inefficiency by the field forces as the cause of its excess costs.

MDC® also developed a damage analysis that quantified the utility’s recoverable costs and assisted in presenting our client’s position to the contractor. This resulted in a favorable settlement for our client.

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