Dispute Resolution in Action:
Supporting an Industrial Client Through ICC Arbitration
KEY INFORMATION
Project Name: International Manufacturing Facility Arbitration
Client: Confidential (Industrial/Manufacturing Sector)
Services Provided: Dispute Resolution, CPM Schedule Analysis, Delay Causation Analysis, Expert Witness Testimony
The Challenge
High-Stakes Claims on a Complex Industrial Project
In the high-risk environment of large-scale industrial projects, disputes can arise when cost and time expectations clash with real-world execution. This was the case in a recent international arbitration where SOCOTEC was retained to provide critical support for an EPCM contractor (Engineering, Procurement, Construction Management) facing a $100 million claim. The dispute involved allegations of cost overruns, schedule delays, and performance deficiencies related to the construction of a major manufacturing facility.
The project had been fast-tracked—a delivery method that compresses design and construction timelines to speed up completion. While this approach can be effective, it often introduces coordination challenges and risk of misalignment between engineering, procurement, and construction phases.
As the dispute escalated, the Owner alleged that the EPCM contractor had breached its contractual obligations and failed to meet the industry standard of care—claims that put the contractor’s financial and reputational standing at stake.
Talk to our experts
The Solution
Expert Analysis, Clear Testimony, Strategic Support
SOCOTEC was engaged to deliver an independent, comprehensive analysis that addressed both the project schedule and cost estimates. Our work included:
- A forensic review of project schedules, change orders, and cost growth across vendors
- An assessment of how the fast-track approach impacted design development and procurement
- A root cause analysis of the delays and cost overruns
- An evaluation of the EPCM contractor’s responsibilities within the contractual and industry context
- The development of a robust expert report used in arbitration proceedings
Central to SOCOTEC’s role was the testimony provided by our expert, Philip Helmes, who presented detailed findings before the International Chamber of Commerce (ICC) Arbitral Tribunal. His testimony clarified the roles and responsibilities of EPCM contractors, contextualized the performance expectations under a fast-tracked model, and explained how decisions by the Owner contributed significantly to the issues at hand.
SOCOTEC was engaged to deliver an independent, comprehensive analysis that addressed both the project schedule and cost estimates. Our work included:
- A forensic review of project schedules, change orders, and cost growth across vendors
- An assessment of how the fast-track approach impacted design development and procurement
- A root cause analysis of the delays and cost overruns
- An evaluation of the EPCM contractor’s responsibilities within the contractual and industry context
- The development of a robust expert report used in arbitration proceedings
Central to SOCOTEC’s role was the testimony provided by our expert, Philip Helmes, who presented detailed findings before the International Chamber of Commerce (ICC) Arbitral Tribunal. His testimony clarified the roles and responsibilities of EPCM contractors, contextualized the performance expectations under a fast-tracked model, and explained how decisions by the Owner contributed significantly to the issues at hand.
“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.”
The Results
A Successful Award and Validation of EPCM Performance
SOCOTEC’s testimony and analytical work were instrumental in the Arbitral Tribunal’s decision. The outcome included:
- Dismissal of the Owner’s $100 million claims
- Award of $38 million to SOCOTEC’s client
- Reimbursement of funds improperly drawn from the Performance Bond
- Recognition that the EPCM contractor met the Standard of Care and industry standards
- Confirmation of Mechanical and Substantial Completion of the Facility
The Tribunal found that delay claims lacked evidence of causation and did not follow proper critical path methodology. They also determined that the cost estimates provided by the EPCM contractor were reasonable, considering the complexity and scope of the project.
In contrast, the Owner's expert witness was deemed unpersuasive, with conclusions that lacked analytical depth and failed to reflect the realities of EPCM project execution.
SOCOTEC’s testimony and analytical work were instrumental in the Arbitral Tribunal’s decision. The outcome included:
- Dismissal of the Owner’s $100 million claims
- Award of $38 million to SOCOTEC’s client
- Reimbursement of funds improperly drawn from the Performance Bond
- Recognition that the EPCM contractor met the Standard of Care and industry standards
- Confirmation of Mechanical and Substantial Completion of the Facility
The Tribunal found that delay claims lacked evidence of causation and did not follow proper critical path methodology. They also determined that the cost estimates provided by the EPCM contractor were reasonable, considering the complexity and scope of the project.
In contrast, the Owner's expert witness was deemed unpersuasive, with conclusions that lacked analytical depth and failed to reflect the realities of EPCM project execution.
Dispute Resolution Expertise in Construction and Engineering
At SOCOTEC, we help clients navigate the most complex project challenges—especially when disputes threaten financial outcomes and reputations. Our ability to deliver clear, defensible, and expert-led analysis in high-stakes environments like arbitration and dispute resolution has made us a trusted partner in the construction, EPCM, and industrial sectors.
From identifying root causes of project issues to evaluating schedule and cost estimates with precision, our team provides the insight and support needed to resolve disputes and move forward with confidence.
Need support with a project dispute?
We are your trusted partner!
