S/S Keystone Canyon

Port of Portland Shipyards, Oregon

Owner: BP America

Client Name: BP America

Engagement Scope

The Sutor Group was engaged by BP America to review and evaluate claims in the amount of $7,364,367 submitted to BP America by Northwest Marine, Inc. Northwest Marine was the prime contractor on the project. The Sutor Group was engaged to present the results of our findings as expert testimony in Federal District Court, Portland, Oregon.

Project description

The project included the capacity reduction and maintenance and repair of the oil tanker S/S Keystone Canyon. The capacity reduction included the shortening of the midbody portion of the hull by 50' 6" and the conversion of certain oil tanks to ballast and the port and starboard wing tanks to cargo. The maintenance and repair contract included general maintenance and repair to the vessel. The ship capacity was reduced from 225,000 tons to 165,000 tons.

Entitlement issues

Differing site conditions (sludge buildup in cargo tanks), constructive acceleration, defective plans and specifications, and changed conditions relating to fitup tolerances for end sections and cut-back requirements.

Type of impacts

Acceleration costs such as overtime inefficiency, crowding of trades, out-of-sequence work, crew start and stop, etc. Direct cost impacts for extra work, extended home and project overheads. Our review of the impacts included the evaluation of the shipyard's application of NAV-SEA labor disruption study and U.S. Department of Labor Bulletin 917 study on overtime inefficiency.