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Industrial Manufacturing Facility

Europe

This manufacturing and industrial project ran into serious difficulties, which resulted in significant delay and cost escalation.

Brief

HKA was retained by the client to assess the performance of the contractor and to provide an independent expert opinion on the reasons for the cost and schedule overruns and the resulting operational losses.

What we did

The complexity of the project demanded an integrated multidisciplinary approach to establish how the contractor’s actions, or omissions, affected the outturn costs and overrun. The HKA team comprised experts in project delivery, process engineering, civil engineering, 3D modelling, delay and quantum, and a specialist in assessing losses and damages. This analysis involved:

  • Using our own unique methods of analysis to forensically interrogate the available data including HKA Advanced Project Performance Analytics (APPA) to identify and understand the issues and causation affecting progress at each stage of the programme.
  • Innovative use of specialist software to analyse the changes within the 3D model.
  • Mining project records to develop a factually based as-built schedule and identifying critical impacts on the planned programme.
  • Assessing manpower levels on site and how they changed as engineering problems were encountered.
  • Identifying the true causes and quantifying the increases to project costs and schedule delays.
  • Quantifying the impact of delayed completion on the manufacturer’s operational costs and lost profits.
  • Mapping the evolution of the scope and detailed design and then correlating this to the corresponding changes to the 3D model. The change control records were a crucial strand of the investigation to determine the underlying reasons and the impact of those changes.

Outcomes

Our client gained an independent, expert perspective on the project and how it was executed. By combining complementary skills in a multi-faceted and integrated analysis, we were able to decode a highly complex project and construct an alternative, evidence-based assessment of the project delivery. This will provide the basis for a negotiated settlement or the detailed analysis required to support litigation.

"HKA was retained by the client to assess the performance of the contractor and to provide an independent expert opinion on the reasons for the cost and schedule overruns and the resulting operational losses."
Project Details
  • Client
    Confidential
  • Value
    €100 million
  • Services
    Quantum, Engineering, Architecture & Technical, Forensic Accounting & Commercial Damages, Delay
  • Sectors
    Industrial & Manufacturing