Page 55 - Megaprojects Playbook
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The client made selections of most of the major production subsystems prior to engaging Haskell in the design-build
            agreement, and then assigned those contracts to Haskell to integrate into a fully functioning system. Haskell was involved in
            the selection of the sub system vendors but had little control of the procurement process. A local engineering firm (Midsouth
            Engineering) with experience in biofuel and woodyard projects supported Drax as Owner's engineer. Haskell’s team included
            an engineering firm from Germany (Seeger Engineering) with specific biofuels experience, but Haskell’s team brought
            little biofuel wood industry experience to the project. At several points during negotiations, Haskell seriously considered
            terminating the negotiations but ultimately chose to proceed. These negotiations took place during a period of weak prospect
            pipeline due to the “great recession of 2008’. That decision to proceed was influenced by the fact that the project was
            expected to employ a very large construction team and support millions of dollars of engineering and design overhead.

            Over a period of 24 months, the Haskell team designed, engineered, procured and constructed two fully functioning biofuel
            production plants. But claims and changes mounted, and costs eventually exceeded the GMP while the client rejected the changes
            and ignored claims. The project team continued to build their claims and change orders while successfully commissioning the plants.
            When regulations changed in the UK related to incentives and cost escalations, the client responded by rejecting invoices and change
            orders leading Haskell to file its claim for non-payment in the Mississippi courts. After several months, the Mississippi courts failed to
            rule on the claims and Haskell and Drax entered into settlement negotiations. The settlement was eventually reached in May 2015.




























































            HASKELL | WE CREATE THINGS THAT MATTER                                                                 49
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