 |
Client: Lloyds of London
Market Segment: Industrial Facilities
Services Provided: Claims Analysis & Dispute Resolution
Location: Magna, UT
Project Value: $500,000,000
The tailings modernizations project consisted of the design and construction of process-pumping-piping systems associated civil works to expand the storage capacity of Kennecott Utah Copper Corporation's (KUC) existing tailings impoundments. The existing tailings impoundments were nearing its operational capacity and KUC required approximately 1.9 billion tons of storage capacity to support mining and concentrated operations for the next 25 to 30 years The tailings were waste rock particles from KUC's Bingham Pit mining operations. In addition the impoundment area was also upgraded and stabilized to accommodate the next phase of mining operations. The scope of work for the major contract on the project included design and construction of two "whole tailings pipelines." In 1993, KUC entered into contract with Morrison Knudsen (MK) for the engineering, procurement, and construction (EPCM) of the project. In 1997 KUC terminated MK as EPCM manager. MK filed a $7.8 million suit alleging the contract had been terminated unjustifiably. KUC filed a $15 million countersuit. In 1999, a settlement was reached, after which MK filed an insurance claim for unrecovered costs.
Trauner performed an independent review and objective analysis of all aspects of the MK claim. In addition Trauner provided technical services needed by Lord, Bissell & Brook to perform a ‘due diligence' review of the insurance claim submitted by MK to the Lloyd syndicate. Trauner prepared reports that focused on determining that the costs, revenues, and authorizations by MK were appropriate and the issues underlying the insurance claim were in accordance with the insurance coverage provisions. Trauner also coordinated accounting and auditing reviews of the MK claim. Trauner also reviewed the KUC counterclaim against MK and MK's risk analysis matrix of the KUC claim, evaluating MK's risk and responsibility allocations. Trauner also reviewed the claim submitted by MK's subsidiary, ICC, and the settlement agreement that included performing an evaluation and schedule analysis of their claimed delays (In addition, technical reports, graphics and exhibits were prepared).
Back to Project List
|
