Watson Millican & Co.’s technical experts were retained through counsel to review claims proposed by a contractor for an arbitration regarding a floating LNG regasification project dispute. Several significant changes had to be made to the project which caused a major delay and the liability for the changes was to be established.

The Dispute

The contractor won a bid to refurbish an LNG tanker into a floating regasification facility and build a jetty and onshore facilities to treat and export the natural gas into the local gas network. During the development of the project, it was discovered that some of the information provided to the contractor was not correct and changes had to be made to the design which resulted in delay of the construction of the receiving facilities.

Watson Millican & Company Scope

Watson Millican’s experts reviewed the bid documents and key project documents and met with the contractor project team prior to completing the analysis of the claims proposed by the contractor. Watson Millican determined that for several claims, the contractor had not carried out sufficient due diligence of the project documents provided by the client at the time of the bid such that the contractor was liable for the changes to the design. In a claim related to the product quality, Watson Millican determined that the client was liable as their specification was not consistent with industry practice.

Project Scope:

  • Value: US $200 Million

  • Services:  Construction Disputes, Project Development

  • Sectors: LNG

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