M/V Columbia

Ketchikan, Alaska

Owner: Alaska Marine Highway System

Client Name: Alaska Marine Highway System

Engagement Scope

The Sutor Group was engaged by the Alaska Marine Highway System to assist in the review and evaluation of the quantification of damages of a claim asserted by Alaska Ship and Dry-dock. Alaska Ship and Dry-docks claim was in excess of $7 million including liquidated damages assessed by AMHS.

Project description

AMHS contracted with Alaska Ship and Dry-dock to replace or modify certain areas and systems on the M/V Columbia. The contract included the replacement of the entire passenger cabin and the ship's service switchboard. It also included modifications to the HVAC system, Internal Communications system, fresh water tank structural and piping and Engineer's operating station. The Columbia is the largest vessel of the Marine Highway fleet. The Columbia is 418 feet long, with capacity for 625 passengers and 134 vehicles. The Columbia was originally launched in 1974.

Entitlement issues

The contractor completed the work after the contractual completion date and was therefore seeking the return of all held liquidated damages. The contractor was also asserting that the specification was defective due to the inability to procure owner specified equipment and materials. In addition, the contractor asserted differing site conditions as a result of encountering excessive asbestos.

Type of impacts

The contractors claim was presented as a modified total cost claim. The impacts included additional costs related to procurement components that the contractor believed were owner specified, additional costs related to encountering of asbestos, and added costs related to the installation of the ships service switchboard. The contractor was asserted increased labor, material and equipment costs.