Construction Disputes Experts | CHEMICAL PROCESSING | COLORADO
EPC Contract Dispute Summary
The case involved a construction contract dispute between the EPC/R&D contractor (Holloway Consulting’s client), and the owner of the project in Colorado. The primary issue was whether or not our client, the EPC/R&D contractor, was entitled to an increase in the contract price due to unknown, undisclosed and unanticipated changes to the scope of the work during R&D, e.g., the owner’s superior knowledge.
Our client’s project proposal and the subsequent EPC Agreement were based on conceptual engineering and design provided by the owner. Our client had great reluctance to enter into the fixed price agreement required by the owner. As a result, our client inserted many qualifications and exceptions into the agreement in a effort reduce or eliminate the risks associated with the agreement. As would be revealed in the litigation, the owner increased the risks for both sides by withholding information indicating that the Front-end Engineering and Design (FEED) could not feasibly be translated into a commercial design.
Predictably, when our client’s engineering and construction costs exceeded the contract sum, the owner rejected all change order requests and sued our client.
Holloway’s Expert Witness Analysis and Testimony
The Holloway Consulting Group, LLC performed a schedule delay analysis and contract damages analysis and issued an expert report in arbitration. Holloway found that under the circumstances of this case, our client had entitlements for the owner’s superior knowledge, constructive change, cardinal change and schedule acceleration, and should be paid the full claimed amounts.