Construction Disputes

Pearson Adair consultants have worked for both owners and EPC firms in arbitration disputes over the engineering, construction/expansion/reconstruction of pipelines, production facilities, natural gas processing plants, condensate splitting facilities, terminals and refineries. Our industry backgrounds, coupled with project experience, allow us to address project management, execution, and staffing as well as industry standards, codes, specifications, change orders, testing, feed and product quality, and performance guarantees.

Refinery and Pipeline Construction Arbitration

Analyzed numerous construction and design defect issues, on behalf of the Engineering, Procurement and Construction (EPC) contractor involved, in a lump sum $1.6 billion refinery and pipeline project in Mexico. Assessed additional work order claims and defect claims for new crude oil, product pipeline, and pump station construction in reference to contractual requirements and normal industry practice. Prepared expert reports, including quantum analysis, detailing the basis of opinions and findings and testified in International Chamber of Commerce (ICC) arbitration hearings.

Natural Gas Processing Plant Construction Delay

On behalf of a state-owned oil company, reviewed Engineering and Construction contractor’s claims of delay and disruption associated with a major de-bottlenecking project for a 2.4 billion standard cubic feet per day natural gas treating facility located in the Middle East. Claims were associated with the design and construction of a high-pressure DGA unit, a 535,000 ton per day sulfur recovery unit, and new high-pressure flare systems.

Gas Plant Cost Estimate

Provided engineering and cost estimating assistance on behalf of Caspian-based oil & gas producer engaged in construction of gas-condensate processing facilities. Prepared independent process design and cost estimate for a gas-condensate inlet separation and condensate stabilization system that was used by client to verify change order claims being made by EPC contractor. Conducted a process design review of the proposed gas plant design to ensure optimum process performance and ability to meet contractual guarantees.

Natural Gas Storage Project Abandonment

Determined value of planned construction and start-up of salt cavern gas storage project. Cavern began leaking during construction of surface facilities, causing the project to be abandoned. Assessed the lost income from third-party storage customers, and evaluated lost marketing, trading, and arbitrage profits of the project developer.

Construction Dispute Litigation, Gas Plant

Assisted in a litigated dispute between Owner-Operator and Engineering and Construction contractor over whether a cryogenic gas plant, as engineered, procured, and constructed, met the stipulated contractual performance guarantees. Reviewed changes in natural gas feedstock quality, including out-of-specification carbon dioxide causing freezes of cold box technology.

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