Claims Consultancy

A substantial disruption dispute in connection with MEP installations on a landmark tower in Dubai

 

Our client, a tripartite international Joint Venture MEP sub-contractor was employed by a main contractor to carry out the MEP installations on this major high-rise building under a modified FIDIC contract.

Our client, a tripartite international Joint Venture MEP sub-contractor was employed by a main contractor to carry out the MEP installations on this major high-rise building under a modified FIDIC contract.

Disputes arose from multiple Employer-driven changes introduced at an early stage in the project which led to substantial delays, scope changes and major disruption. These employer events caused significant additional costs to be incurred by both main and sub-contractors which led to arbitration proceedings being instigated by the main contractor against the employer as well as the sub-contractor against the main-contractor.

The firm was appointed by the sub-contractor to prepare an initial review of its entitlement under the subcontract and to recommend steps for resolving the issues.  Following these recommendations, we were instructed to prepare a fully detailed arbitration-ready statement of claim against the main contractor.

The issues in dispute required us to establish entitlement to an extension of time, associated loss and expense and rights for the recovery of additional costs caused by disruption running to several hundred million AED. 

A particular feature of this assignment is the necessity to demonstrate entitlement to disruption on a cause and effect basis (as opposed to the usually applied ‘global claim’ basis) by the firm executing complex data analytics of the huge project labour records which spanned over 5 years. Due to our team’s specialized skills in this area, we have been able to identify the periods of high labour costs and drill down to effectively establish the required cause-and-effect linkage.

The documents are currently under forensic review and the case is on-going.