References

Context

Engaged to audit the contractual management database of a tramway project already showing 18% cost overruns and delays threatening penalties, Argos Construction exposed process and methodology weaknesses. By demonstrating that the contractor was not solely responsible for the delays, penalties were avoided and a claim for additional compensation could even be presented.

Mission

Audit of the contract information system

Objectives

• Analysis of contract documents and information sources
• Review of pricing and claim topics
• Status report with recommendations

Stakes

• Justification of cost overruns of €6M on a €34M contract

Results

Team awareness raised; tools improved and rolled out for tracking disruptions, enabling a claim for additional compensation

Context

Despite significant disruptions, the joint venture in charge of track-laying and overhead-line works (€200M) completed the project without jeopardising the train commissioning date. Argos Construction's analysis brought to light critical disruptions previously unidentified, allowing more than €10M in delay penalties to be challenged.

Mission

Claim for additional compensation relating to disruptions

Objectives

• Delay analysis and substantiation of entitlements
• Review and complement of cost-overrun pricing
• Drafting of the memorandum to be attached to the draft final account

Stakes

• 6 months of time extension to be substantiated
• €10M of delay penalties
• €30M of cost overruns

Results

Under discussion

Context

Faced with non-compliant geological conditions and changes imposed from the start of excavation, the joint venture had presented two memoranda totalling €20M, accepted at only 10% by the Owner. Argos Construction's independent review, establishing €10.1M as the negotiated baseline, led to a signed amendment for €9.6M.

Mission

Preparation of an Argos-headed report

Objectives

• Review of claims as part of the negotiation of an amendment

Stakes

• €20M presented by the joint venture, reassessed at €10M by Argos Construction

Results

€9.6M

Context

With the works completed but acceptance refused due to leaks, the joint venture had presented a €9M claim covering 17 months of delay. Argos Construction's analysis distinguished 11 compensable months, 3 excusable but non-compensable months and 3 months attributable to the contractor, leading to partial admissibility of around €500k.

Mission

Report in response to the joint venture's claim memorandum

Context

Faced with a €7M penalty demand from the Owner, the contractor was claiming €16M of additional compensation. Argos Construction's detailed analysis showed that the changes imposed by the Owner itself were the cause of the delays, allowing the penalties to be set aside.

Mission

Preparation of a claim for additional compensation — general account

Objectives

• Contractual analysis and reconstruction of disruptive events
• Delay analysis and financial impacts
• Drafting of the additional-compensation memorandum

Stakes

• Phase 1: 14-day delay on an initial 147 days; Phase 2: 35-day delay on an initial 91 days; Phase 3: 0 days on an initial 112 days
• €8M on a €50M contract

Results

Out-of-court settlement