ON-SHORE NATURAL GAS PIPELINES | CLAIMS | SAUDI ARABIA
Construction Contract Dispute
This Saudi Arabia gas pipeline construction project involved a construction contract for an 36″ onshore natural gas pipeline from Abqaiq to Uthmaniyah. The dispute between the construction contractor and the owner arose during the job when the contractor’s construction labor and equipment productivity began to suffer, costs increased, and the contractor submitted a construction damages claim.
Contractor’s Entitlement – Construction Claim
The primary issue between the parties was whether the contractor suffered schedule delays, compensable craft labor productivity and equipment productivity losses due to owner design changes and change orderss.
We found that under the circumstances of this case, factors such as change orders did cause some craft labor productivity losses that the owner should pay for.
The client achieved a very favorable settlement prior to the dispute developing into litigation.