Commercial Construction
Wastewater Interceptor Project, New Castle County, Delaware.
Kirschbaum Consulting analyzed and defended against more than $3.6 million in contractor-claimed damages on a wastewater interceptor project located in New Castle County, Delaware. Damages included time-related costs due to alleged delays and force majeure events, labor and equipment rates, material escalation costs, overtime, consultant fees and changed/extra work claims.
Large Medical Campus, Washington, D.C.
Kirschbaum Consulting personnel performed a review on several construction projects to investigate allegations of fraud and potential kick-backs. The investigations gave management assurance that the allegations were not supported by the record. The results were reported to the office of the Chief Financial Officer.
Government Contracts
Testing Center Project, Baltimore, Maryland.
Kirschbaum Consulting personnel reviewed extensive contract and financial documents to analyze damages on behalf of a U.S.-based international provider of technology-enabled testing and assessment solutions that had been terminated for convenience. Financial records were reviewed to establish incurred development costs over multiple key business divisions in order to prepare a settlement proposal. The in-depth analyses were presented to the U.S. government resulting in a favorable resolution for our client.
Military Headquarters, South Sudan, Africa.
Kirschbaum Consulting was retained by a U.S.-based general contractor to defend against claims of more than $3.6 million arising from the construction of a military facility in South Sudan. The project was part of the U.S. Department of State’s peacekeeping, capacity enhancement, and surveillance efforts in Africa. Kirschbaum Consulting prepared expert reports analyzing the project’s critical path delays and quantifying potential damages. Our efforts included identifying critical delays caused by problems experienced by the contractor to acquire construction materials and equipment and provide transportation to the remote project site. We also identified several unexplained subcontractor expenses that may have been in violation of the Foreign Corrupt Practices Act.
International Construction
U.S. Department of State Building Project, Baghdad, Iraq.
Kirschbaum Consulting analyzed and prepared 47 claims totaling more than $270 million in damages on behalf of an international general contractor responsible for constructing a large embassy complex project. The complex included over 25 residential, office and support buildings. Our work included analyzing cost overruns related to uncompensated contract changes, schedule delays and disruptions, and unique wartime conditions. Multiple expert reports were prepared in early 2018 and Kirschbaum Consulting provided subsequent deposition testimony and assisted counsel with financial and accounting expertise in support of various legal motions and arguments before the Civilian Board of Contract Appeals. In addition, at the request of the Judge, Kirschbaum Consulting worked extensively with the opposing damage expert to reduce the number of quantification issues between the parties, resulting in joint stipulations related to damages.
Underground Gas Storage Facility, Brazil.
Kirschbaum Consulting was engaged by an international engineering firm to review claims of over $3 million involving complicated technical issues stemming from an alleged breach of the consulting agreement by failing to meet the engineering standard of care. We analyzed the claims and support and prepared an alternative damages calculation.
Commercial Disputes
Telecommunications, Mid-Atlantic Region.
Kirschbaum Consulting was engaged by a Prime Contractor installing fiber optic infrastructure for high speed internet in three large urban markets. We were asked to quantify damages associated with the dissolution of a subcontractor Joint Venture and to defend against a $35 million claim for economic losses to the subcontractor. Kirschbaum Consulting analyzed costs related to the dissolution of the Joint Venture including a reconciliation of unpaid subcontractor invoices, materials costs, and third-party claims. Our analysis also demonstrated that the economic losses prepared by the subcontractor’s expert was not correctly quantified and could not be relied on to award damages to the subcontractor.
Fuel Supply Contract, Maryland.
Kirschbaum Consulting was retained by a U.S.-based oil company to quantify damages of up to $5 million related to a retailer’s breach of a long-term fuel supply contract. The work involved researching the mid-Atlantic fuel supply market and calculating damages related to the oil company’s increased costs and lost profits due to the breach.
Software Development, California.
Kirschbaum Consulting personnel analyzed damages related to claims by a software development subcontractor against the prime contractor and former employees. Allegations included breach of contract, theft of intellectual property/business secrets and tortious interference. An expert report was prepared alleging damages of up to $5 million for direct damages and lost future profits.
