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- May 4, 2010
- In This Issue:
- Industry
Spotlight
- Interface
Consulting Insight
- Construction
Disputes
- Construction
Delays
- Construction
Management
- Construction
Opportunities
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Corporate Headquarters
One Riverway, Suite 2350
Houston, Texas 77056
713.626.2525
713.626.2555 (fax)
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Interface Consulting Insight
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Fire Rebuilds Stoke Flames of Claims if Not Handled
Appropriately
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Christopher J. Sullivan, Interface Consulting
International, Inc.
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"Today’s refining, chemical, petrochemical, and heavy industrial
facilities process and utilize hazardous chemicals, and despite the best
laid plans and procedures, accidents do happen."
"...Heeding some lessons learned during the rebuild process can help
minimize the opportunities for claims and disputes following a fire or
explosion."
"...First and foremost, safety of all personnel should drive all
responses...."
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Construction Disputes
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Sewer fight: King Co., contractor squabble over $48
million
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Seattle Post-Intelligencer
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"Change order requests by the joint venture...ask for additional
payments for the companies' work on the central portion of a 13-mile
tunnel that will carry wastewater from the treatment plant to Puget
Sound."
"Claim[s] of this type routinely occur in major construction
projects, but...the amount in this case is unusually high given the
venture's original $211-million contract price...."
"The company...repeatedly blames unforeseen circumstances such as
variations in soil type for slowdowns in the tunnel drilling and the
added expense of keeping it moving...."
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Construction groups sue over state payment halt
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Crain's New York Business
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"A coalition of trade associations...has filed a lawsuit against the
state over Gov. David Paterson's decision to unilaterally halt payments
for hundreds of state construction projects...."
"...the suit alleges that contractors who work on roads and bridges
must either work with no guarantee of pay, or stop work. Those who stop
are cited for breach of contract and become ineligible to bid on future
work."
"The suit is demanding that the state either offer assurances that
contractors will be paid, or agree not to cite those who stop working
with breach of contract."
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Construction Delays
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Construction work on Olkiluoto III nuclear reactor to
experience further major delays
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Helsingin Sanomat
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"The construction of Finland's fifth commercial nuclear reactor...has
been delayed once again. Even so, the French installation company Areva
stands its ground, maintaining that the new reactor will generate
electricity from the summer of 2012."
"A number of experts in various fields have estimated that the
completion of the nuclear reactor project in 2012 will be
'challenging'...to say the very least."
"'It looks likely that the installation of primary components will
start in June. The installation is to start from the reactor and the
pressure vessel, after which come the steam generators,'...."
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Federal complex in Greenville estimated to cost $70
million
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The State
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"The estimate...is the first appraisal offered to the public since
three years ago when the government agency charged with
construction...expressed public concern that the cost had doubled
because of repeated delays over the past decade."
"...the congressman's office contacted GSA's business department and
received the estimate of $70 million plus 10 percent to 20 percent in
added costs for design, maintenance and inspection."
"The project has been in the works since 2001, when it was announced
that construction should be complete by 2007."
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Construction Management
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Long Beach Airport modernization on track
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The Mercury News
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"After years of delay brought on by political and legal wrangling,
work is under way on a $136-million, multiyear modernization project at
Long Beach Airport, the facility's first redevelopment in decades."
"Upgrades to runways, aircraft parking pads and the main terminal
will occur throughout the three-year construction period, with all work
expected to be complete by mid to late-2013."
"During the years of delay, airport officials banked tens of millions
to cover future construction costs...."
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Agreement reached on light rail line in Minn.
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The Associated Press
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"The agreement would allow preparatory work, including building
sidewalks, retaining walls and installing traffic signals, to start this
summer. When completed, the rail line will...connect the downtowns of
Minneapolis and St. Paul."
"'It's been a long and torturous process, but we hope this is the big
hurdle,'...delays could have raised the project's cost by $1 million
when an unexpectedly low construction bid expired."
"Construction of the 11-mile line is planned to be complete by 2014
at a total cost of $957 million."
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Construction Opportunities
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Battle of Las Vegas arena projects proceeds
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Las Vegas Review-Journal
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"Two companies and a nonprofit group want to develop arenas with
20,000-plus seats for sports and other events. Two are proposed on the
Strip, and one would be on the south Strip...."
"Texas-based IDM hopes to build the Silver State Arena there at an
estimated cost of $750 million."
"...the complex...on the Harrah's site would be nonprofit...whereas
the other arenas being proposed would be privately owned."
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Port of Miami tunnel project on track for June start
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The Miami Herald
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"The tunnel is one of three transportation megaprojects under way in
South Florida. The others are the $1.7 billion Miami Intermodal Center
near Miami International Airport and the $1.8 billion reconstruction of
Interstate 595 in Broward County."
"Once built, the tunnel will link the port for the first time to area
expressways in a bid to speed cargo traffic and ease traffic congestion
in downtown Miami."
"...Miami Access Tunnel plans to finish on time, as promised in the
contract, on May 15, 2014. 'If we don't, we'll be penalized,'...."
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AGRI: First Ever LNG Project in the Black Sea
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Eurasia Daily Monitor
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"Azerbaijan, Georgia, and Romanian [sic] are jointly launching
a
liquefied natural gas (LNG) project....as an element in the EU-planned
Southern Corridor for Caspian gas to Europe."
"AGRI envisages transporting Azerbaijani gas by pipeline to Georgia's
Black Sea coast, liquefying it there, shipping the liquefied product by
tankers to Romania's coast, and delivering the re-gasified product into
Romania's pipeline system and onward to EU territory."
"...AGRI is the first-ever LNG project in the Black Sea...."
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Dominion announces natural gas project
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The Associated Press
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"Energy company Dominion Resources Inc. has announced a project to
harvest, process and transport growing volumes of wet natural gas in
West Virginia, Pennsylvania and Ohio...."
"The Marcellus Shale is a rock bed the size of Greece...beneath New
York, Pennsylvania, West Virginia and Ohio. Geologists say it could
become the most productive natural gas field in the U.S., capable of
supplying the entire country's needs for up to two decades...."
"Most energy companies...believe stricter federal regulations for
coal mining and emissions are coming. Utilities are swapping out
coal-fired power plants for cleaner-burning natural gas turbines."
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Industry Spotlight
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Into the Deep: Exploring
Offshore Oil Frontiers
Offshore drilling and its associated hazards have recently captured the
public’s attention as a result of the April 20 Deepwater Horizon
incident. Despite the safety and environmental risks, advances in
technology and new political agendas have accelerated commercial
interest in offshore drilling, especially in deep and ultra-deepwater
locations. Read on to learn more about these emerging frontiers and the
investigation into possible causes of the unfortunate incident.
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Blazing a trail far out at sea
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The Houston Chronicle
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"After more than a decade of work, they began last month pumping oil
at the massive floating [Perdido] facility, which sits in nearly 8,000
feet of water..., setting several records along the way."
"...more than a dozen big oil discoveries have been in made Lower
Tertiary formations...in a 300-mile band on the outer edge of the U.S.
Gulf between Texas and Louisiana."
"Perdido alone is capable of producing 100,000 barrels of oil and 200
million cubic feet of natural gas per day - enough to meet the energy
needs for over 2 million households for a year."
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New deepwater drilling rigs extend search for energy
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The Houston Chronicle
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"The $630 million vessel is one of a new wave of ultra-deepwater
drilling rigs, leaving Asian shipyards now, that will again push the
limits of what the offshore industry can do."
"... the Discoverer Inspiration is built to operate in waters up to
12,000 feet deep and drill wells an additional five miles below the sea
floor...."
"Oil companies are demanding such rigs as they expand their search
for oil and natural gas into deeper waters of mature basins like the
Gulf of Mexico and eye emerging regions such as the Philippines and East
Africa."
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Apache to buy Mariner Energy for $2.7 billion
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The Associated Press
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"The acquisition makes Apache a major player in deepwater oil
drilling - a business that's becoming increasingly attractive as oil
prices rise above $85 a barrel....recent seismic tests also make it
easier and cheaper to exploit rich petroleum deposits in the Gulf."
"The Apache acquisitions are the latest in a rush of billion-dollar
energy deals....about $25.4 billion worth of petroleum exploration and
production deals worldwide were announced in March. That's five times
more than the previous two months combined."
"...Now that the economy is recovering, investors are increasingly
blessing these deals with oil prices expected to rise in coming
years...."
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The spill in the Gulf of Mexico won't stop the
deepwater scramble for oil
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The Telegraph
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"Deepwater Horizon, the Transocean rig that...caught fire causing the
death of 11 workers and a growing environmental disaster, was not BP's
deepest drilling prospect at 1,525 metres under the sea."
"...extreme measures to stem the spillage show just what kind of high
risk and difficult conditions oil companies are working under to tap
the world's remaining reserves."
"... 'It won't stop deepwater drilling. It's obvious that the world
needs this stuff from these places and there are very few companies
qualified to extract it,'...."
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Failed Tool of 'Last Resort' Doomed Rig Workers,
Allowed Spill
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Bloomberg Businessweek
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"A 2-foot-long metal clamp that failed to cut a pipe on the ocean
floor may be to blame for the Deepwater Horizon catastrophe...."
"All subsea oil wells are equipped with steel blades known as shear
rams that are supposed to slash through the pipe at the top of the well
during dangerous pressure surges and close off the flow of crude...."
"The shear ram is part of...a blowout preventer that sits atop a well
to reduce the force at which oil and gas travel to the surface from
thousands of feet underground."
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'Cementing' of rig's well eyed as possible culprit in
blowout
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The Houston Chronicle
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"Investigators...raised concerns three years ago about oil rig
blowouts associated with cementing wells, noting that accidents were
continuing with regularity, most in the Gulf of Mexico."
"...the cause of [the] explosion on the Deepwater Horizon remains
under investigation....At the time of the accident, crews were
'cementing,' or installing casing to secure the walls of the well."
"Cementing problems were associated with 18 of 39 blowouts between
1992 and 2006...."
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