Monopile manufacturer Shanghai Zhenhua Heavy Industry (SZHI) has been ordered to pay Fluor £21.4M in liquidated damages following delays on SSE’s Greater Gabbard offshore wind farm in 2009.
The case regarding defects within the monopiles delivered by SZHI to the project was concluded in the Technology and Construction Court by high court judge Sir Antony Edwards-Stuart last week.
Fluor has previously settled claims by Greater Gabbard Offshore Wind (GGOW) with regards to the delays on the project and failure of the transition pieces after it proceeded with pile installation without repairing defects first. Under the previous case, GGOW was ordered to pay Fluor £42.65M to settle unpaid work but Fluor was ordered to pay £32.32M in counterclaim damages for the delays and ordered to offer an extended warranty for the piles.
In the current case, Fluor sought to reclaim £50M from ZSHI to cover the costs of additional work and the claim by GGOW.
Fluor’s claim against ZSHI related to quality and manufacturing defects of the piles that contributed to the issues on the project resulting in GGOW’s claim against Fluor. The court proceedings details that a number of the piles were larger in diameter than the maximum specified in the contract, were “wavy” in profile and a number had welding defects.
According to Fluor, 232 days out of the 817 days of delay on the phase 1 foundations for GGOW were related to breaches of contract by SZHI. Fluor has said that of these 47 days were critical.
Edwards-Stuart ordered SZHI to pay Fluor £21M but SZHI is seeking to recover a warranty bond, valued at £19.5M, so the court has ordered for an interim payment of £1.8M to be made.