Claim and Negotiations

The Brief

A Lebanese owned civil engineering contractor client engaged JEPSON CONSULT on a major road and bridges project in a densely populated area of Lagos State, Nigeria which was under construction and the contractor was incurring heavy losses due to ongoing severe delays and disruption. The form of contract was a heavily amended FIDIC Red Book. The contractor’s in-house staff had submitted individual claims relating to instructions as requested by the Employer’s consultants who sought further details. The value of those claims though fell well short of the contractor’s losses on the project to date and this situation was likely to worsen. JEPSON CONSULT visited site, appraised the situation and advised the client to submit a composite claim to detail and cover all the multiplicity of causes of delay and disruption and detail the physical and financial effects (including an Extension of Time and associated prolongation costs) and update that claim at regular intervals and include in Interim Applications for Payment. JEPSON CONSULT also advised on the additional record keeping required to prove such a composite claim including programme updates, photos, videos, graphics and marked up drawings of the numerous encumbrances and obstructions along the ROW (Right of Way); numerous acts of prevention; access issues; bell mouth, culvert and bridge location and design issues; etc. JEPSON CONSULT visited site at regular intervals over the following 3 years to produce and update the composite claim which final value amounted to circa USD 125,000,000. This was achieved with a small team of only Harold Jepson and a senior member of the clients project team who called on other project and office based team members as and when necessary to provide information and supporting documents. After initial reluctance had been overcome to address the composite claim (which JEPSON CONSULT dealt with in correspondence) negotiations began with the Employer and his consultants which following an audit of the costs resulted in a satisfactory negotiated settlement for the client.

The key to success in this case included:

1.      The client’s director being wise enough to seek assistance from JEPSON CONSULT at a reasonably early stage.

2.      JEPSON CONSULT’S case appraisal and advice to submit a composite claim and advice on additional record keeping.

3.      JEPSON CONSULT making regular visits to site to update the claim, checking on record keeping, driving the ROW to see the extent of issues and address contractual correspondence.

4.      JEPSON CONSULT assisting and representing the client during the negotiations.

JEPSON CONSULT has a proven track record in resolving difficult and complex cases aided by “out of the box” thinking. As one satisfied client put it:

“We employ Mr Jepson for his wisdom”

Telephone + 44 (0) 7785 730359 for a no obligation chat if you have any project issues of concern