Accuracy

CLIENT SERVICE » SOLUTIONS » Projects, Advisory & Disputes

Our solutions in a dispute context

Situation

Delay analysis and quantum valuation on a construction project

Industries include construction and infrastructure; transport; energy (renewables / nuclear / oil & gas), manufacturing; mining; aerospace & defence.

Accuracy by your side


Dispute avoidance and resolution

Disputes in major projects can arise from a number of different situations, for example: a project has been terminated or is experiencing delays or disruption and anticipated cost overruns. Negotiations between the parties to the contract are either under way or have not lead to a settlement.  Formal proceedings might be necessary to determine damages and allocate responsibilities for the delay.


We provide advice and assistance throughout the dispute resolution process on the planning and scheduling, financial, commercial and accounting implications that arise, in particular analysing the cause of the dispute and its impact upon the project.


We assist in negotiations when a project shows signs of distress, helping reduce the risk of a formal dispute arising. If a formal dispute has arisen we have experience assisting clients during litigation and alternative dispute resolution (ADR) mechanisms such as mediation and adjudication.


In addressing such disputes, our clients need to rapidly assess many complex and interrelated issues to understand the cost, revenue time, quality, and future risk implications to their business, thus allowing informed decision making on the basis of reliable factual analysis and figures.


We can help you to reduce your exposure or increase your recovery.

Example: Infrastructure project experiencing delay and cost overruns:


Issues

  • Need to understand the extent, incidence and causes of delay in a complex long term construction contract
  • Need to allocate responsibilities for delays between the parties involved
  • Need to quantify the loss or profit foregone as a consequence of the delay

 Our Role

  • Pre-dispute support  (delay and quantum assessment)
  • Dispute resolution advice  (mediation, arbitration, litigation)
  • Project audits: time-related assessments (during sell-side or buy-side due diligence, closing accounts and post transaction)

 Approach

  • Understand how the project was meant to be completed, the main sequences of work, any high-   risk items and the inter-relationships between various parts of the project (“the as-planned critical path”)
  • Establish what actually happened with the aim of identifying which sequences of work were in fact determinative of when the project was or will be completed (“the as-built critical path”). 
  • Map out and summarise a high-level view of the main phases of work i.e. engineering, procurement, construction and commissioning, and track key project milestones (“the extent and incidence of delay”)
  • Establish why the delays occurred by reviewing contemporaneous project documents
  • Quantify the damage, including actual loss, profit foregone and opportunity costs (measurement of price, volume, margin and market trends; market modelling and “but-for” scenarios; project financial analysis; modelling of the margin