International Manufacturing Facility, USA
SOCOTEC Supports Successful Outcome in $100M ICC Arbitration.
Key Information
Project name: International Manufacturing Facility
Client: Confidential
Location: Confidential
Market Sector: Buildings
End Sector: Industrial/Manufacturing
Services Provided: Dispute Resolution, ICC Arbitration Support, Expert Witness Testimony
Photo credit: Phil Helmes
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Project Summary
SOCOTEC in the USA recently played a pivotal role in an ICC arbitration involving a $100 million dispute over cost and schedule overruns tied to the construction of a large international manufacturing facility.
At the heart of the case was an Engineering, Procurement, and Construction Management (EPCM) contract and whether the contractor met its obligations under the agreement and prevailing industry standards.
Project Details
SOCOTEC's team, led by Philip Helmes, was retained to analyze key project documentation, including schedules, procurement packages, cost trends, and performance data across multiple contractors and vendors. A central focus of the dispute was the Owner’s decision to fast-track the project—bypassing several essential design phases—which SOCOTEC determined to be a significant contributor to both the cost growth and schedule delays.
In his testimony, Mr. Helmes clearly articulated the distinctions between EPC and EPCM delivery models, explained the contractual responsibilities of the EPCM contractor, and walked the Tribunal through how the contractor performed in areas such as procurement management, project controls, and engineering coordination. The Tribunal found his testimony "persuasive and helpful," ultimately adopting his core conclusion: that the EPCM contractor met the Standard of Care and fulfilled its contractual obligations.
The Owner’s claims were dismissed, including allegations of negligent engineering, inadequate procurement practices, and unreliable cost estimates. The Tribunal also determined that the Owner had improperly drawn on the Performance Bond and ordered full reimbursement. In the end, SOCOTEC’s client was awarded $38 million—representing a decisive victory in a highly complex, high-stakes international dispute.
This outcome showcases SOCOTEC’s expertise in navigating contractual disputes and delivering expert testimony that helps clients achieve successful outcomes, even in the most challenging forums.
“Mr. Helmes’ perspectives and insights were helpful to us in assisting our understanding of the contractor’s EPCM responsibilities and the EPCM contractor’s discharge of those responsibilities.”
