A contractor executing a project for the design, engineering, procurement and construction and commissioning of a Fuel Oil, Fuel Gas and Gas Oil Pipeline project in a Middle Eastern country, lodged claims for additional payment of approximately USD 2.45 billion.

Iain Wishart was appointed as the Respondent’s quantum expert. Iain and his team undertook detailed research on the issues and Iain attended a site inspection to familiarise himself with the project. Following this, Iain produced an expert report, setting out his view and valuation of the items being claimed; an agreed Joint Statement setting out points agreed and not agreed and / or requiring further investigation by both experts; a rebuttal report providing his opinion on the Claimant’s expert’s position; and provided evidence in the arbitration.  Apart from the usual cross examination evidence, Iain and the Claimant’s expert also gave evidence in the process known as “hot tubbing”.

In their Award, the Tribunal found that one of the options that Iain supported, namely fair and equitable rates, was the appropriate rate to value the work not covered by contract rates.  Iain’s report and his evidence had valued the work in question at a few million US dollars.  The Tribunal’s Award was reasonably close to Iain’s assessment at well under 0.2% of the claimed value.

On a project in North Africa to convey water from subterranean aquifers up to 750 metres below the Sahara desert to populated coastal areas, Iain Wishart was retained as the quantum expert to calculate damages arising from well failures.  Because of the size and complexity of the claims and counterclaims, Iain formed a large team of planning engineers, quantity surveyors and engineering experts.  The project concerned was one of the largest civil engineering projects in the world.  Iain produced several reports during the ICC Arbitration proceedings and eventually testified during a three-week hearing in Paris where he was cross-examined by four separate lawyers.  Following the hearing the tribunal directed the experts to provide further information to assist them, which Iain did.

Over a three-year period, Joe McAloon provided contract administration and commercial management advice to a US based EPC company during the construction of a new onshore gas processing plant in Sharjah, UAE.  The scope of work comprised the design (conceptual and detailed engineering), procurement, fabrication, installation, testing, pre-commissioning and commissioning of the new gas plant facilities capable of processing 40 MMSCFD sour gas, 300 bbl/day associated hydrocarbon condensate and 3,000 bbl/day produced water.

Iain Wishart was retained by a Government Agency in Turkey defending a claim brought by a German / Turkish joint venture on a gas gathering and storage project on the Bosporus.  Iain reported on a number of specific change order claims and provided an evaluation of them.  However, there were several major claims for prolongation costs, disruption and what Iain described as a wholesale global re-evaluation of labour costs without any linkage to the complaints.  The Tribunal noted “that their (the Claimants) claim was found to be highly problematic by Mr Wishart” and found that “because (the Claimant) failed to meet its burden of demonstrating their damages claim, the claim must be rejected”.

A catastrophic explosion occurred at a fuel storage depot followed by a fire that destroyed substantial parts of the facility. Iain Wishart was retained by the defendant in the proceedings who had been found liable for the reinstatement costs in a prior trial.  The support to the claim was presented in the form of a Front End Engineering Design (FEED) which had been prepared by the Claimant with the assistance of a firm of oil industry engineers.

Iain undertook a ground up valuation of the project and exposed a number of over estimates by the Claimant particularly in respect of material costs, labour rates and overhead factors.  Following discussions with instructing solicitors, Iain opened a dialogue with the Claimant’s expert and reached a substantial measure of agreement to such an extent that the court was largely being asked to determine only engineering issues.  The dispute settled.  The instructing solicitor said of Iain “I have personally found Mr. Wishart very easy to work with, very thorough in his analysis and presentation and has a great depth of experience that I have not seen in many of his contemporaries”.

Joe McAloon was employed as a Senior Contract Engineer by a major Italian Contractor who was sponsor of a Sino-European Joint Venture for the construction of a 240m high Concrete Arch Dam and associated works on a Hydroelectric Power Scheme in Sichuan Province, China.  Joe was responsible for management of the variations and claims and major sub contracts.  Joe reported to the Contract Manager and Project Manager and prepared briefing papers and position papers for the JV Board and Disputes Review Board on claim issues.

On an oil and gas pipeline between the Caspian Sea and the Mediterranean, an Indian contractor sought assistance to persuade the owners to recognise and compensate it for its additional costs incurred on the project. In conjunction with his engineering and other support colleagues, Iain Wishart conducted a series of meetings with the owner client’s consultants and examined the major elements of the contractor’s claims. The assignment culminated in a meeting between contractor and owner organisations, their lawyers and consultants to establish a compromise agreement.

Joe worked on the construction of the multi-purpose Hydro-electric Scheme in Iraq.  Joe was employed as a Contract Engineer by a major German Contractor who was sponsor of a Joint Venture of leading German and Italian contractors.  Joe was responsible for the measurement and valuation of concrete and earthworks structures and the contract administration and commercial management of the two major project-wide subcontracts of drilling and grouting and hydraulic steel structures.  He also prepared claims reports and position papers for the “Claims Committee” that was set up by the parties in an attempt to reach amicable resolution of the disputes.  During the latter stages of this assignment Joe worked in the sponsor’s office in Germany as part of a team preparing formal notices of dispute and documents for a potential arbitration, in close liaison with London based solicitors.