In ITIC’s recent publication on claims cases, ITIC reported on an incident where a maritime engineering consultant was engaged on a Boil Off Gas (commonly referred to as “BOG”) Compressor Project. Their involvement included the design of the oil lube pump piping in the compressors. They prepared construction drawings and the oil lube pump piping was built in accordance with those drawings.
Just before the compressors were due to be commissioned, the client discovered that there was a reduction in the oil level in one of the compressors. On investigation it was found that the design drawings contained an error. The connections for two pipes were swapped over.
The client brought a claim for $96,432, which included the costs of draining the system, depressurizing the lines, dismantling parts of the system, remedying the design errors and subsequently reassembling the system. Some testing had to be repeated and there was a delay in commissioning the compressors.
ITIC said that “it was clear there had been an error in the design drawings. The costs claimed were reviewed by an expert and were considered to be reasonable. The claim was promptly settled and ITIC reimbursed the consultant.”