Legatech recently managed a complex construction dispute related to a refinery project in the Middle East, involving Section C of an EPC contract. In this case, our client, a construction contractor, was responsible only for the Construction phase (Section C), while the Engineering and Procurement (E&P) parts of the project were handled by a separate contractor.
The dispute began when the refinery owner claimed that delays in the Construction phase led to project overruns and additional costs. The key issue was determining how much of the delay was attributable to our client’s responsibilities in Section C and how much was due to delays in the E&P phases, which were beyond our client’s control.
To resolve this, we carefully reviewed all project documents, including the original contract, progress reports, and communication between the parties. We then employed delay analysis methods, including critical path analysis, to demonstrate that delays in the E&P phases directly impacted the timeline for the Construction phase. This analysis helped show that much of the overall delay was caused by issues outside our client’s control.
We also applied pacing delay analysis to show that our client had adjusted their work schedule to accommodate delays in the E&P phase, making every effort to minimize the impact of the delays on the overall project. This approach significantly reduced our client’s liability for the delays.
Initially, the court awarded €1.5 million to our client. However, after we appealed the decision and presented additional evidence, the court of appeals increased the award to €5.5 million, recognizing the full impact of delays caused by the E&P phase and our client’s efforts to mitigate them.
This case highlights how Legatech’s thorough approach to delay analysis and contract management helped resolve a complex dispute through court procedures. It showcases our ability to navigate challenging construction cases and secure favorable outcomes for our clients by presenting clear and convincing evidence.