Arbitration panel awards power plant owner more than US$300 million in international construction dispute
Brief
In 2008, a power plant owner entered into a lump-sum, turnkey engineering, procurement, and construction (EPC) contract with an energy contractor for the design and construction of a 300-MW solid fuel-fired power plant in Guatemala. The plant consists of two units and can be operated with coal fuel and/or petroleum coke, with the capability of running on 100% coal and up to 60% petroleum coke. The plant was scheduled to begin construction in Spring 2010 and commence operations in mid-2013.
Throughout the project, the energy contractor failed to perform its EPC work in a timely manner, leading to lengthy and unexcused schedule delays. In 2013, after the energy contractor failed to achieve the scheduled takeover dates, the owner terminated the energy contractor for default. The owner retained several subcontractors to complete the work post-termination. Both units were ready for commercial operations in mid-2015.
What we did
HKA was retained by outside counsel on behalf of the power plant owner to assist in resolving the dispute. Our experts analyzed the owner’s claims and analyzed and rebutted the energy contractor’s delay and disruption claims. The energy contractor’s claims purportedly resulted from late site handover, delayed basic design approval, customs delays, visa delays, and other alleged owner-responsible impacts.
HKA also evaluated and confirmed the reasonableness of the owner’s post-termination estimate to complete and schedule to complete. In July 2015, we testified at arbitration hearings in Dublin, Ireland, before a three-member International Chamber of Commerce (ICC) tribunal.
Outcomes
In 2016, the ICC arbitration panel ruled in the power plant owner’s favor, awarding more than US$300 million to the owner and effectively zeroing out the energy contractor’s US$875 million in counterclaims. As part of the award, the owner recovered all liquidated damages amounts to which it was contractually entitled and approximately 95% of its claimed re-procurement costs.
HKA’s analysis helped show that the energy contractor’s delay and disruption claims were almost entirely unfounded.
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_1931109776-480x340.jpg)
"HKA’s analysis helped to show the energy contractor's delay and disruption claims were almost entirely unfounded."
-
ClientPower Plant
-
Year2008-2016
-
ValueUS$300 million
-
ServicesClaims, Delay and Disruption Analysis
-
SectorsConstruction and Engineering, Power and Utilities
RELATED PROJECTS
RELATED PROJECTS
![](https://cdn.hka.com/wp-content/uploads/2020/01/faris-mohammed-uG5_ERHN040-unsplash-280x210.jpg)
Independent Quantum Expert Opinion of Highway Maintenance Contract
Europe
![](https://cdn.hka.com/wp-content/uploads/2020/10/UNSW5-280x210.jpg)
UNSW Capital Projects Sustainability Framework
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1289920885-280x210.jpeg)
Subsea Cable Installation & Trenching Operations
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_191351435-280x210.jpg)
Coal-fired power plant
Asia
![](https://cdn.hka.com/wp-content/uploads/2019/06/pexels-pixabay-162646-280x210.jpeg)
Missouri Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/matt-seymour-NcmOysOF_Mw-unsplash-280x210.jpg)
Independent Commercial, Cost & Risk Review of Road Development
Europe
![](https://cdn.hka.com/wp-content/uploads/2020/11/yucar-fotografik-cfR-V1QuEKw-unsplash-280x210.jpg)
Sydney Water, Partnering for Success (P4S)
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1372606610-280x210.jpeg)
Subsea Interconnector Cable Failure
Europe
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_576018130-280x210.jpg)
Coal-fired power plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2019/07/pexels-johannes-plenio-4460676-280x210.jpeg)
Spent Nuclear Fuel Verdicts & Settlements
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/shutterstock_739242352-280x210.jpeg)
Independent Quantum Expert Review of Maintenance Contract
Europe
![](https://cdn.hka.com/wp-content/uploads/2021/01/AdobeStock_261723143_Melbourne_web-e1707447623872-280x210.jpg)
Melbourne Airport Rail
Oceania
![](https://cdn.hka.com/wp-content/uploads/2022/01/FACD-280x210.jpg)
Energy and Telecom Cable Manufacturer
Americas & Asia
![](https://cdn.hka.com/wp-content/uploads/2022/11/shutterstock_2012903819-280x210.jpg)
Water desalination plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_609628034-280x210.jpg)
Longview Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/01/shutterstock_64845340-1-280x210.jpg)
Major Light Rail Transit
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/07/shutterstock_1315203980-3-280x210.jpg)
Liquefied Natural Gas (LNG) Project Australia
Oceania
![](https://cdn.hka.com/wp-content/uploads/2022/07/shutterstock_526595785-280x210.jpeg)
Clean Fuels Project
Middle East
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_539854030-280x210.jpeg)
Offshore refinery contractor performance review
Asia
![](https://cdn.hka.com/wp-content/uploads/2019/07/pexels-pixabay-263402-280x210.jpeg)
University of North Carolina Hospitals
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/02/shutterstock_701032348-1-280x210.jpg)
Two New Venues
Middle East
![](https://cdn.hka.com/wp-content/uploads/2021/08/WhatsApp-Image-2021-08-08-at-10.38.13-AM-280x210.jpeg)
Residential Development
Middle East
![](https://cdn.hka.com/wp-content/uploads/2022/07/shutterstock_1700360854-280x210.jpg)
Nuclear Power Plant Decommissioning
Americas
![](https://cdn.hka.com/wp-content/uploads/2023/11/Rozelle-interchange-280x210.jpg)
WestConnex Rozelle Interchange
Oceania
![](https://cdn.hka.com/wp-content/uploads/2019/06/zbynek-burival-517983-unsplash-280x210.jpg)
South American Oil Refinery
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/02/pexels-thirdman-5327915-280x210.jpeg)
A Major Teaching & Research Hospital
Europe
![](https://cdn.hka.com/wp-content/uploads/2021/08/shutterstock_671935024-scaled-1-280x210.jpg)
Natural Gas-Fired Power Plant
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/06/Generic-Industrial-Manufacturing-33-280x210.jpg)
Global chemicals manufacturer
Americas & Europe
![](https://cdn.hka.com/wp-content/uploads/2019/07/shutterstock_137593487-280x210.jpg)
Major Nuclear Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/04/shutterstock_1898870809.jpg)
Nuclear Power Plant
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_93575686-280x210.jpeg)
Industrial Manufacturing Facility
Europe
![](https://cdn.hka.com/wp-content/uploads/2022/09/chris-dack-6H9XK16F3wU-unsplash-280x210.jpeg)
Business Park, Surrey
Europe
![](https://cdn.hka.com/wp-content/uploads/2019/08/shutterstock_1112383511-280x210.jpg)
Major Canadian Utility Commercial Damages Matter
Americas
![](https://cdn.hka.com/wp-content/uploads/2020/10/Picture2-280x210.jpg)
New School Campus, Ultimo Primary School
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/12/shutterstock_1085652248-280x210.jpeg)
Subsea Power Cable Failure
Asia
![](https://cdn.hka.com/wp-content/uploads/2022/09/pexels-julia-volk-5201944-280x210.jpeg)
Highway Rock Cuttings
Middle East
![](https://cdn.hka.com/wp-content/uploads/2019/01/pexels-trinity-kubassek-230620-280x210.jpg)
Share our Space Program
Oceania
![Pioneering Spirit Allseas Oil and Gas Offshore](https://cdn.hka.com/wp-content/uploads/2019/01/allseas-pioneering-spirit-280x210.jpg)
Allseas & Pioneering Spirit
Europe
![Sydney Water Lower South Creek Treatment Program Australia Tap](https://cdn.hka.com/wp-content/uploads/2019/01/bathroom-black-and-white-blur-615326-280x210.jpg)
Lower South Creek Treatment Program
Oceania
![Hume Housing | Infrastructure | Expertise | HKA](https://cdn.hka.com/wp-content/uploads/2018/11/Hume-Housing-280x210.png)
Hume Community Housing
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/09/joey-kyber-Pihl8kTtX-s-unsplash-280x210.jpeg)
Infrastructure Investment Assurance Framework
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/09/bigstock-Two-electricians-securing-powe-26134499-280x210.jpg)
Electricity Network Improvement
Oceania
![](https://cdn.hka.com/wp-content/uploads/2021/06/shutterstock_535814989-280x210.jpg)
High Speed 2 (HS2) Project
Europe
![Sydney Major Transport | Infrastructure | Expertise | HKA](https://cdn.hka.com/wp-content/uploads/2018/10/Sydney-Major-Projects-e1554899277213-280x210.jpeg)
Major Transport Projects Review
Oceania
![City metro Australia Newcastle Project Advisory](https://cdn.hka.com/wp-content/uploads/2018/08/Newcastle_City-Metro-Rail-motion-blur-280x210.jpg)
Urban Transformation & Transport Programme
Oceania
![](https://cdn.hka.com/wp-content/uploads/2018/08/EssentialEnergy-280x210.jpg)
Strategic Procurement & Programme Management Improvement
Oceania
![](https://cdn.hka.com/wp-content/uploads/2017/03/AdobeStock_378243029-280x210.jpeg)
Sydney Metro
Oceania
![Ultimo Pop Up School Australia Sydney](https://cdn.hka.com/wp-content/uploads/2018/07/Ultimo-Pop-Up-School-Australia-280x210.jpg)
Temporary School at Ultimo Primary School
Oceania
![](https://cdn.hka.com/wp-content/uploads/2020/11/Construction-image-scaled-e1635262262716-280x210.jpg)
Gerald Desmond Bridge
Americas
![](https://cdn.hka.com/wp-content/uploads/2021/03/shutterstock_1140608543-280x210.jpg)
Office and Retail Landmark
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/10/shutterstock_2101749-1-280x210.jpg)
Port of Long Beach
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_577717501-280x210.jpeg)
Airport Pavement Management Survey
Americas
![](https://cdn.hka.com/wp-content/uploads/2017/03/pexels-marina-hinic-730778-280x210.jpeg)
Greenfield St George Airport, Utah
Americas
![Kashagan Oilfield Kazakhstan](https://cdn.hka.com/wp-content/uploads/2018/04/Kashagan-280x210.jpg)
A Giant Oilfield
Asia
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_691234552-280x210.jpeg)
Hunter River Remediation
New South Wales, Australia
![](https://cdn.hka.com/wp-content/uploads/2017/03/pexels-pixabay-56832-280x210.jpeg)
Great Western Highway Widening
Victoria, Australia
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_1947842533-280x210.jpeg)
Rail Rehabilitation Scheme
Bucharest to Brasov line, Romania
![](https://cdn.hka.com/wp-content/uploads/2017/03/shutterstock_324754607-280x210.jpeg)
Yanbu Power & Desalination Plant
Yanbu Industrial City, Saudi Arabia
Follow HKA on WeChat
关注我们的官方微信公众号
![HKA WeChat](https://cdn.hka.com/wp-content/themes/hka2/assets/img/hka-wechat-qr-code.jpg)