In 2014, Reactor Assembly Co (RAC) engaged Unscrupulous Limited (UL) to assemble and install a nuclear reactor at a new nuclear power plant in England.
law
Description
The Brief - Contractual
claims and dispute resolution
Background
In 2014,
Reactor Assembly Co (RAC) engaged Unscrupulous Limited (UL) to assemble and
install a nuclear reactor at a new nuclear power plant in England. The project
is the first of three reactors which RAC intends to build at the site. RAC is
currently reviewing the bids submitted by contractors, including RAC, for the
other two reactors. The project is very high profile and RAC is keen to avoid
negative press.
The
project is being undertaken under the NEC3 Engineering and Construction
Contract (Option A: priced contract with activity schedule) and associated sub-
contracts. The total of the Prices was £100 million. The Contract provides for
Delay damages (liquidated damages) at £1million per day from the Completion
Date, as extended if appropriate.
The Works
have not gone well. The Completion Date was 14 February 2019, but the Works are
far from complete. No Compensation Events adjusting the Completion Date have
yet been intimated.
Despite
this, UL remains eager to work on the next two reactors. UL considers it may
have claims for time and money due to:
- An email request by RAC to
postpone the first slab pour by 5 days so it could arrange a ceremony with
local dignitaries to witness the pour.
- Variations.
- Additional quantities of
concrete which were required for the basement slab pour than UL expected.
- The failure by RAC, contrary
to its contractual obligation, to deliver certain materials to the site
on-time.
In turn,
RAC has intimated that it is likely to make deductions or claims for:
(a) Delay
damages. (b) Defective works.
UCL has
not yet done more than set out its heads of claim. The value of its claims in
time and money is not currently clear.
