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Independent water and power project (IWPP) , Saudi Arabia

Facts

Client: Engineering, procurement and construction contractor

Country: Korean contractor – project in Saudi Arabia

Industry: Energy (Power/Water) – crude-oil fired power station (900MW) and multi-stage flash desalination plant (880,000 m3/day)

Services provided:

  • Project support
  • Dispute resolution advice
  • International arbitration

Issues

Fenwick Elliott advised on all legal issues arising in connection with the construction and commissioning of this major IWPP project. The project suffered from delays giving rise to questions of liability for delay liquidated damages and entitlements to additional time and money under the project’s turnkey contract.

Issues also arose between members of the contractor consortium, including complicated issues of liability for delay and concurrency.

Fenwick Elliott also advised in connection with a dispute with a major local subcontractor.

Solutions

Fenwick Elliott advised the EPC contractor on preparation of delay and disruption and additional cost claims against the project’s owners.

Fenwick Elliott also advised on the resolution of disputes between consortium members and participated in a series of structured negotiations between the parties leading to settlement without the need for arbitration.

In connection with a major subcontractor dispute, Fenwick Elliott commenced arbitration proceedings in London under the Arbitration Act 1996 leading shortly thereafter to a negotiated settlement.

Benefits

Through our long-term involvement in this project we were able to provide practical advice based on detailed background knowledge of the project and its history.

We worked closely with our client’s planners and technical personnel to assess potential entitlements and liability and prepare sound, well substantiated claims positions which placed our client in a strong position to negotiate acceptable commercial outcomes.