EXPERT WITNESS AND REPORTING:

EXPERT REPORT - VALUATION OF SUBMITTED CLAIMS ON RIYAD METRO, SAUDI ARABIA

Problem received:
A large subcontractor engaged in the construction of the Riyadh Metro project in Saudi Arabia requested a review of 3 rejected Extension of Time claims, outstanding variations and contra charges deducted from their payment certificates.

The Process and Solution:
After receiving and familiarizing itself with the claims, variations and contra charges, TDS held meetings with the Commercial staff of the subcontractor. TDS compiled and issued a report in an easily understandable manner showing the inaccurate data in the Subcontractor’s claims and Variations.

The delay events in question after inspection did not reflect the requested number of days by the Contractor. TDS had to insert the delays into the current programme to see if the entitlement exists. This provided a clear indication that the Subcontractor did its delay calculation incorrectly. The new extension of Time claims had to be drafted and submitted.

The outstanding Variations were re-priced and re-submitted with a contractual based argument for the Subcontractors entitlement to the additional cost. The subcontractor faced an extremely one-sided contractor.

The Benefit:
The Subcontractor skewed its reporting to its business units and upper management with an incorrect number of entitled Extensions of Time days. This created a misinterpretation of the risk of Liquidated Damages and also expected Prolongation cost recovery. The Expert Report and subsequent claim correction, revised Variation Order Proposals and much Contractual Correspondence, made sure the Subcontractor received substantial compensation. This increased their revenue and expected profit on the project.