Navigate Your Renewable Project With Confidence
Throughout the next decade, there will no doubt be a worldwide increase in the construction of renewable projects due to government stimulus packages.
Although this is a perfect opportunity, it will lead to increasing pressure on the industry and like other major construction projects time and cost disputes will undoubtedly occur.
Renewable projects are complicated, and all parties — the customer, EPC contractors and subcontractors — expect the work to be done on-time and on budget.
But delays and cost overruns happen frequently due to logistical challenges, connection issues, unfinished or defective work from previous contractors, and other unforeseen circumstances.
The list below details the top ten problems faced by those involved in renewable projects and is no way exhaustive.
The top 10 issues faced by renewable projects are as follows:
Delay to site access
Unknown ground conditions
Logistical constraints
Crane and lifting issues
Design interfaces
Other contractor interfacing issues
Commissioning issues
Grid Connection issues
Weather issues
Wildlife
When delays and cost increases happen, the affected parties do not always communicate the cause, event and entitlement clearly or substantiate the matters in disputes. Actual loss or the risk of loss can lead to accusations between parties, creating tension that only makes the problem worse. When on either side of the claim, you need to objectively identify what happened and who is responsible. This requires forensic expertise.
It is difficult for parties to identify the specific cause and event that created the issue and link back to an entitlement under the contract. It can be challenging to substantiate the effects with respect to lost time and increased costs and ultimately communicate a clear and concise position. These difficulties and challenges create major problems for all involved and further tension is created.
Solving the problem requires the precision of true quantum and delay experts who know where the facts can be found and can demonstrate the cause and effect succinctly and substantiate the issues clearly. This approach is objective and leads to reduced stress, frustration, and anxiety.
What can those involved in the Renewables sector do to minimise or mitigate claims?
Produce robust fully resourced programs with a true baseline and correctly updated every week
Understand the contract obligations including limitations to their scope (do not do more without getting paid and obtaining additional time)
Send all notices as per the prerequisites and within the timeframes
Keep daily records and organise accordingly
Identify the actual matters that are outside the scope and requiring additional cost and time.
Again, the above points are in no way exhaustive, but will either minimise disputes or assist when it comes to identifying the Cause, Event and Entitlement. It is imperative that the above tasks are completed diligently and not treated as an administrative burden.
Disclaimer: This paper does not in any way constitute any type of legal or professional advice whatsoever and in no way should be relied upon by any party whatsoever in any jurisdiction.
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