Watson Millican & Company’s technical experts were retained to represent the construction contractor responsible for the pre-fabrication and construction of a polyethylene plant in the USA.

The Dispute

The detailed design contractor allegedly misrepresented the state of completion of the detailed engineering when the work was transferred to the construction contractor.  The construction contractor had entered into a lumpsum turnkey contract for the construction work and their costs were based on an engineering scope of work and drawings which were purported to be 90% complete by the detailed design contractor.  The subsequent increase and delay in drawings issued and revisions to many of the drawings and specifications had a major impact on the costs and time taken to complete the project.

Watson Millican & Company Scope

Watson Millican evaluated the P&IDs and line lists, the issued for construction (IFC) isometric drawings for pipework, and reviewed many of the electrical, instrument and civil engineering deliverables.

Experts reviewed a sample of the P&IDs and found that some major process design changes were made after other engineering disciplines had completed their work and issued drawings for construction.  WMC found that 80% of the isometric drawings reviewed required further major changes in a sample of 35% of the total number of drawings.

A review of the electrical line diagrams showed that less than 50% had been issued and they all required subsequent revisions which implied that the engineering was not complete when the drawings were issued. The subsequent changes meant that the electrical supply and distribution system could not be finalised. Similar reviews were carried out for the other engineering disciplines.

Waton Millican found that good engineering practice had not been followed and the detailed engineering was substantially less complete than had been represented by the detailed engineering contractor at the time of compiling the Lump sum bid for the construction.   Our review of issued for construction drawings revealed that the prerequisite engineering was not complete at issuance and thus the drawings were ultimately revised when construction was underway.  At the time of handover, the detailed engineering contractor claimed that the work was 90% complete however, through our analysis, WMC estimated the detailed engineering was, in fact, only about 75% complete at the time of handover.

Project Scope:

  • Value: US $150 Million

  • Services:  Construction and Engineering

  • Sectors: Chemicals