Project:

Construction of numerous new Waste to Energy Facilities of varying types in North West England, including several Mechanical Biological Anaerobic Digestion Facilities for a 25 year PFI Project.

Procurement:

Bespoke Construction Contract and Interface Agreement for PFI Project.

Our Role:

To produce, following earlier legal advice, full claim documents that will enhance the Contractor’s position as well as defending a number of claims received from the Client and other parties to the PFI; insurance claims; insolvency & Adjudication.

Who we worked with:

The Commercial Risk Management team is working daily alongside and with the site team, as well as liaison with the Client’s Senior Management and legal advisors.

Timeframe:

Commercial Risk Management’s involvement commenced in January 2012 and is still current.

Outcome:

This contract is extremely complex with the problems revolving around the failure of some of the Facilities to achieve the targeted level of recycling, power output and landfill reduction. The contractual arguments are detailed and need specialist input into the engineering principles involved in what is a relatively new form of waste management.

Lessons Learned:

Although the project is still ongoing the Contractor has had a legal review system running for a number of months prior to Commercial Risk Management’s involvement. This has the benefit of ensuring that the claim work being undertaken by Commercial Risk Management is in line with these legal reviews. However earlier involvement of Commercial Risk Management would have been beneficial in this process.