ILM ELECTRICITY TRANSMISSION LINE

BRITISH COLUMBIA, CANADA

Recovering the commercial damages incurred during the construction of the US$723 million Interior to Lower Mainland power line.

The Interior to Lower Mainland transmission line is a 500-kilovolt power line that stretches from Coquitlam to Merritt in south-central British Columbia. It carries electricity from transmission points along the Peace and Columbia rivers to more than 3.2 million people living on the Lower Mainland and Vancouver Island.

British Columbia Hydro and Power Authority awarded the design-build contract in 2011. Construction got underway on the largest expansion in three decades of the state’s transmission system the following year.

The ILM line was completed in 2015, almost a year late following delays caused by a range of factors including scope changes, design and construction challenges, and conditions along the line’s route. The new line was built through some of Canada’s most challenging and diverse terrain, crossing mountains, major rivers, grasslands and highways. It also traverses public and private lands.

Brief

Main contractor Flatiron-Graham Joint Venture retained HKA to provide delay and disruption analysis and forensic accounting analysis associated with a US$310 million claim on the project.

What we did

We assembled an expert team comprising specialists in the following areas:

  • Schedule analysis and support
  • Forensic delay analysis
  • Disruption / loss of productivity quantum analysis
  • Forensic accounting

 

We also provided expert witness testimony during arbitration, along with services for the arbitration hearing and post-brief support.

Outcomes

Our comprehensive and detailed analysis provided the basis for our client’s successful claim and the recovery of the majority of its incurred costs.

The arbitrator – in a decision released in March 2018 – found that changes made by BC Hydro to a portion of the line had delayed the contractor’s work. Also, access problems involving private land and archaeological sites disrupted its construction schedule, causing a loss of productivity and additional costs for which BC Hydro was responsible under the contract.

Interest was also payable on some of these award amounts, taking the total recovered in commercial damages to some US$135 million.

"Our comprehensive and detailed analysis provided the basis for our client’s successful claim and the recovery of the majority of its incurred costs."
Paul Pocalyko, Partner, HKA
Project Details
  • Client
    Flatiron-Graham Joint Venture
  • Year
    2012-2017
  • Value
    US$723 million
  • Services
    Delay Disruption Analysis, Forensic Accounting & Commercial Damages
  • Sectors
    Power & Utilities