Multidisciplinary support for MEP claims

Awarded a lump-sum contract, the building services subcontractor was incurring significant unbudgeted costs. Despite delays in completing the design and civil works, the main contractor, which had full design responsibility, rejected the subcontractor’s claims.

HKA was commissioned to undertake an initial review and prepare a strategy to maximise the MEP’s subcontractor commercial position. We were subsequently appointed to prepare a series of claims for extension of time, delay and disruption costs, and variations.

HKA assembled a multidisciplinary team, drawing on our quantum, engineering, and delay expertise.

Our initial review clearly established that failures by the main contractor to fulfil its design obligations and provide access for the MEP works had caused critical project delays. Significant design changes had also resulted in additional costs.

We advised on the need for more detailed progress updates and daily site records and devised a strategy to support the recovery of costs. This included potential claims for constructive acceleration, design variations, extension of time, and delay and disruption costs.

In stage two, our team, comprising five quantum specialists, two engineers, and two delay analysts, prepared these claims.

• Variations: Through a structured workshop with the site team, we identified time-critical design variations. We reviewed the subcontractor’s previous submissions, carried out our own technical analysis to define the scope of work under the original design documents, and mapped the extent of the design changes.

We then prepared detailed and persuasive claims for each major variation. In total, these amounted to around 100 claims.

• Extension of time: Our as-planned versus as-built methodology formed the basis of a robust delay analysis, supported by a detailed narrative explaining the logic and findings. When the claim was updated, the subsequent period was analysed using a time-slice retrospective analysis methodology.

We also reviewed the contract to assemble the strongest possible case for the recovery of time and costs arising from each delay event.

• Additional claims: Our team carried out the necessary assessments to establish entitlement to costs arising from prolongation, disruption and lost productivity, constructive acceleration undertaken to meet an imposed completion date, and related losses.

The impact of disruption was initially calculated on an earned value basis. Once more detailed records became available, we applied a measured-mile methodology to the later period and retrospectively used this analysis to supersede the initial claim.

Our integrated multidisciplinary capability was critical to securing the commission and protecting the subcontractor’s commercial position.

The HKA team safeguarded our client’s rights ahead of arbitration. Our advice on record-keeping and subsequent analysis strengthened its claims, which were prepared to the highest possible standards. The total value of the claims exceeded that of the subcontract.