Integrated Expert Witness Support in High-Stakes Construction Arbitration

Case Study

Background

A large-scale commercial construction project involving a high-rise office complex faced significant delays and cost overruns due to a series of disputes between the developer and the contractor. The project was plagued by technical issues, design changes, and productivity inefficiencies, escalating into arbitration under international rules. The dispute centred on claims for delays, additional costs, and breaches of contract. DAC Consulting Services was engaged to provide integrated expert witness support, combining technical, delay, and quantum expertise to deliver a comprehensive and unified analysis for the arbitral tribunal.

Challenges

The arbitration presented several complexities that required a multidisciplinary approach:

1. Technical Disputes: Allegations of design deficiencies and construction defects required independent technical analysis.

2. Delay Attribution: The critical path of the project timeline was contested, necessitating a detailed forensic scheduling analysis.

3. Quantum Evaluation: The financial impacts of delays and cost overruns needed to be accurately quantified and aligned with contractual terms.

4. Conflicting Claims: Both parties presented conflicting narratives, requiring robust evidence and independent opinion to resolve discrepancies.

5. Global Jurisdiction: The case was governed under ICC Arbitration Rules, requiring strict adherence to procedural standards.

DAC’s Role

DAC was engaged as the expert consultant to deliver integrated support across technical, delay, and quantum disciplines. Our role included:

1. Forensic Engineering Analysis:

• Conducted a root cause analysis of construction defects, including structural issues and material nonconformities.
• Evaluated design specifications and compliance with industry standards to address allegations of design deficiencies.

2. Forensic Delay Analysis:

• Performed a critical path analysis to identify delays impacting project completion.
• Utilised a Time Impact Analysis (TIA) to evaluate the effects of design changes, contractor inefficiencies, and external factors.

3. Quantum Analysis:

• Quantified claims for prolongation costs, disruption losses, and additional expenses incurred due to design changes.
• Evaluated counterclaims, including alleged inefficiencies and rework costs, providing a balanced financial assessment.

4. Expert Reporting and Testimony:

• Prepared an integrated expert report presenting technical, delay, and quantum findings in a cohesive narrative.
• Delivered expert testimony during arbitration, addressing cross-examination effectively and supporting the client’s position.

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Methodology

DAC adopted a structured and methodical approach to address the arbitration’s complexities:

1. Integrated Analysis: Combined technical, scheduling, and quantum insights to deliver a unified understanding of the project’s challenges and their impacts.

2. Fact-Based Evaluation: Relied on contemporaneous project records, including contracts, schedules, and progress reports, to ensure accuracy and credibility.

3. Collaborative Engagement: Worked closely with the client’s legal team to align findings with the overall dispute resolution strategy.

Outcome

DAC’s comprehensive expert analysis and testimony played a pivotal role in resolving the arbitration efficiently and equitably. Key results included:

• Identification of design changes as a primary cause of delays, with partial responsibility attributed to both parties.

• Quantification of prolongation and disruption costs, leading to a fair allocation of financial responsibility.

• Presentation of clear, defensible findings that enabled the arbitral tribunal to make informed decisions.

The resolution restored collaboration between the parties, allowing the project to proceed to completion with minimal further disruption.

Key Takeaways

1. Multidisciplinary Expertise: Combining technical, delay, and quantum insights ensures a comprehensive understanding of complex construction disputes.

2. Clarity in Reporting: Delivering integrated and accessible findings helps arbitral tribunals make well-informed decisions.

3. Effective Testimony: Clear and credible expert testimony is critical to influencing outcomes in high-stakes arbitration.

4. Proactive Collaboration: Aligning expert findings with legal strategies strengthens the client’s position and ensures a cohesive case presentation.

5. Global Standards Compliance: Adhering to procedural rules and industry standards is essential in international arbitration.



By leveraging DAC’s integrated expertise, the client achieved a favourable outcome, preserving the integrity of the project and safeguarding their financial interests.