M/V Kennicott

Gulfport, Mississippi

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 Halter Marine Group, Inc. HMI's claim was approximately $50 million.

Project description

AMHS contracted with Halter Marine to construct a new Ocean class passenger and car ferry. The Kennicott is 382 feet long, 85 feet wide, with nine decks. The ship has a capacity for 748 passengers, provides 312 berthing accommodations, and has space for 80 standard automobiles

Entitlement issues

HMI asserted that AMHS overreached its contractual rights, transformed the underlying foundation of the contract, withheld superior knowledge and continually changed the work during construction.

Type of impacts

HMI asserted that AMHS had not paid for approximately 100 discretely priced changes totaling $5.1 million, subcontractor and HMI engineering impacts of $5.7 million and HMI labor impacts of $12 million. In addition, HMI asserted that vessels being constructed in its yard at the same time as the Kennicott were impacted by $23 million.