Construction Dispute Services
Watson Millican & Company consultants have represented both owners and construction companies in contractual disputes over the design and construction of pipelines, offshore platforms, FPSOs, LNG liquefaction and regassification plants, natural gas processing plants, refineries, chemical plants, on and offshore wind farms, and power generation facilities.
Ranging from full service engineering-procurement-construction (EPC) contracts for grass roots projects to services agreements for plant maintenance, our industry and project experience allows us to provide comprehensive and objective analyses of the issues.
We have provided advice and expert testimony in all areas of design and construction including industry standards, project management practices, procurement, scheduling, codes and specifications, feed and product quality, change orders, performance guarantees and testing. We can also provide advice for dispute avoidance.
Refining and Chemicals
SIAC Refinery and Petrochemical Facility Construction Arbitration
Analyzed issues related to FEED compliance, value engineering, detailed design completion, schedule delays, defects, and performance testing on behalf of the EPC contractor. The EPC contractor worked on behalf of the owner to design and construct a new green field $9.0 billion refinery and petrochemical facility project in SE Asia. Prepared several expert reports, supplemental reports, and joint expert reports detailing the basis of opinions and findings and provided evidence at multiple hearings.
ICC Refinery Revamp and Expansion Construction Arbitration
Analyzed issues related to FEED completion, cost estimation, detailed design completion, procurement of equipment, and modularization of pipe racks on behalf of the EPC contractor. The EPC contractor worked on behalf of the owner to design and construct a $6.0 billion refinery expansion project in Latin America. Assessed the allegations and the performance of the works with reference to the industry standards, contractual specifications & procedures, and common industry practice. Prepared an expert report, supplemental reports, and joint expert reports detailing the basis of opinions and findings and provided evidence at the hearing.
Refinery and Pipeline Construction Arbitration
Analyzed numerous construction and design defect issues on behalf of the Engineering, Procurement and Construction (EPC) contractor involved in a lump sum $1.6 billion refinery and pipeline project in Central America. Assessed additional work order claims and defect claims for new crude oil, product pipeline, and pump station construction in reference to contractual requirements and normal industry practice. Prepared expert reports, including quantum analysis, detailing the basis of opinions and findings and testified in International Chamber of Commerce (ICC) arbitration hearings.
AAA Petrochemical Facility Construction Arbitration
The construction contractor worked with its joint venture engineering and procurement partner on behalf of the owner to design and construct a $2.0 billion petrochemical facility producing both high and low density polyethylene in south Texas. Analyzed issues related to detailed engineering completion, maturity of designs, and reporting of detailed engineering progress. Performed detailed analysis of the nature and timing of Issued for Construction deliverables, including piping isometrics, to the construction company and revisions of the same. Prepared an expert report detailing the basis of opinions and findings and provided evidence at the hearing.
Power Generation
Circulating Fluidized Bed (CFB) Power Plant Disputes
For the Contractor, analyzed engineering impacts, design changes, construction and commissioning delays and defects regarding two CFB Power Plants in Europe. Assessed engineering development, design changes, fuel supply changes, Covid impacts, commissioning delays, and back charges. Prepared multiple expert reports detailing the basis of opinions and provided expert testimony in ICC arbitration.
Combined Cycle Power Plant Completion Dispute
On behalf of the owner/operator, assessed multiple claims raised by a national power utility for a power plant located in Latin America. The claims alleged owner/operator’s incompletion of testing and startup activities, the testing of high voltage equipment, failures of dispatch, the damage of a steam turbine and plant trips. WMC prepared three expert reports, conducted a site visit, and provided arbitration testimony.
Utility Plant Dispute
Acted as technical expert in Engineering, Procurement and Construction (EPC) contract dispute in International Chamber of Commerce (ICC) Arbitration over claims made by owner against contractor related to the design and construction of power and steam utility plant facilities supporting large refinery complex. Claims involved the design of asphalt fired steam boilers, a seawater desalination unit, seawater piping, corrosion, and other plant design issues. Conducted several site investigations, prepared expert reports, and testified before ICC Arbitration panel.
Natural Gas and NGLs
LCIA Gas Plant and Pipeline Construction Dispute
Provided expert opinions on behalf of a middle eastern governmental entity against the developer and EPC contractor regarding claims related to deficient design and construction of a new gas processing plant in Iraq. Claims involved delays associated with late engineering, late delivery of materials, scope changes, and rework. Prepared expert report and provided evidence to the tribunal during the hearing.
Gas Processing Plant Dispute
Prepared expert reports and testified in Australian arbitration on behalf of Engineering, Procurement and Construction (EPC) contractor involved in engineering and construction of offshore platform, sub-sea pipelines, and onshore natural gas processing plant. Issues involved impact of change to feedstock design basis as well as numerous engineering and construction related defect claims made by owner.
Natural Gas Processing Plant Construction Delay
On behalf of a state-owned oil company, reviewed Engineering and Construction contractor’s claims of delay and disruption associated with a major debottlenecking project for a 2.4 billion standard cubic feet per day natural gas treating facility located in the Middle East. Claims were associated with the design and construction of a high-pressure DGA unit, a 535,000 ton per day sulfur recovery unit, and new high-pressure flare systems.
LNG Pre-Treatment Module Supply Dispute
For the Contractor analyzed fabrication and completion efforts in defense of back charge claim regarding the supply of LNG Pre-Treatment Modules fabricated in Mexico. Assessed Owner claims of incomplete and defective work. Prepared multiple expert reports detailing the basis of opinions and provided ICC arbitration testimony.
Pipelines
ICC Gas Pipeline Construction Dispute
Provided expert reports and testimony in ICC arbitration on behalf of EPC contractor involved in design and construction of 500 km natural gas pipeline and surface facilities. Issues involved evaluation of claimed change orders compared to contract scope of work, pipeline alignment changes, and impact caused by pipeline spread move arounds.
Arbitration of Refinery and Pipeline Construction Dispute
Reviewed numerous allegations of construction and design defects, including pipeline corrosion, welding, and testing issues, on behalf of an E&C contractor involved in a lump sum US$1.6 billion refinery and pipeline project in Central America. Assessed numerous outstanding work order claims with reference to the contractual framework as well as normal industry practice. Provided expert reports and testified in the ICC arbitration hearing.
Crude Oil Pipeline Construction
Provided expert reports and deposition testimony on behalf of crude oil pipeline construction contractor in support of breach of contract claims made by owner. Conducted evaluation of contractor performance under a reimbursable target price contract including impact of right-of-way delays, scope changes, and weather delays.
LNG
LNG Pre-Treatment Module Supply Dispute
For the Contractor analyzed fabrication and completion efforts in defence of back charge claim regarding the supply of LNG Pre-Treatment Modules fabricated in Central America. Assessed Owner claims of incomplete and defective work. Prepared multiple expert reports detailing the basis of opinions and provided ICC arbitration testimony.
Renewables
Offshore Wind Dispute
Provided claims management services team resulting in the effective settlement of approximately $500 million in claims from the EPC contractor.
Windfarm Substation Dispute
Dispute related to six substations over six sites in Africa at different stages of construction and valuation of work done prior to contract termination. The sub stations were needed to facilitate the supply of electricity from windfarms to urban areas. Provided expert testimony and the quantum evidence developed enabled that part of the dispute to be settled without being arbitrated on.
Offshore Wind Contract Termination
Part way through construction, the initial contract for substation on a German offshore wind project had to be terminated and a new contractor installed. Managed process of changing contractor which resulted in project acceleration. Also managed teams working on turbine supply, jackets, heavy lift installation of all of these and cable supply and installation.
Offshore Wind Dispute
Acted on behalf of investors by advising on $50 million dispute resolution and contract management matter regarding the construction of offshore and onshore substations on a 350 MW UK offshore windfarm.