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Showing contexts for: mcdermott in Mcdermott International Inc vs Burn Standard Co. Ltd. & Ors on 12 May, 2006Matching Fragments
(iv) Transportation and installation of the WI-8, WI-9, WI-10 and N-3 jackets, piles, temporary decks and decks, and installation of four pipelines and eight risers (the "Four Platform Installation Main Contract").
The said contracts contained arbitration agreements.
BSCL and Mcdermott International Inc. (for short "MII") entered into Technical Collaboration Agreement on 25th September, 1984 in terms whereof the latter agreed to transfer technology to the former with regard to design, construction and operation of a fabrication yard. The said agreement contains a separate arbitration clause between the parties.
It was further recorded in paragraph 68.4 of the Final Award:
"Even after the work was completed, there was a meeting on 16-17 June, 1987 at which ONGC informed that the Change Order was agreed to in principle"
So far as the claim of compensation in addition to the said Change Order Nos. 2,3 and 7 is concerned, the statement of claim of MII is as under:
"4.65: The BSCL delays and disruptions required McDermott to alter the fabrication and installation sequence to match deliveries of equipment. This precluded McDermott performing certain activities as planned in the Subcontract. Change order No.2 relates to additional cost incurred by McDermott due to delay in receipt of equipment and material supplied by BSCL. BSCL's delivery of the equipment was upto seventeen months late. During this period, McDermott continued to fabricate the decks installing material as it became available. The delay resulted in additional costs to McDermott due to change order with cost effect of US$574,000.00. BSCL has failed and neglected to make payment of the invoice for this change order.
4.66: Change order no.3 relates to mobilization and demobilization of Derrick Barge 26 to complete BSCL work in the 1986/1987 construction season. The Subcontract price was based on mobilization and demobilization of a single barge in the 1984/1985 and 1985/1986 construction seasons only and performance of the offshore scope of work in a continuous sequence. Due to BSCL delays, the WI-8, WI-9, WI-10 and N3 decks and helidecks were not completed for installation during the 1985/1986 work season. Further, the WI-7 to WI-8 pipeline and five risers could not be installed due to unavailability of material and lack of access to the EB and EC jackets, which were still under construction. In the 1986/1987 construction season, Mcdermott used Derrick Barge 27, which was already in the field, to install the WI-8, WI-9, WI-10 and N3 decks. Mcdermott also had to mobilize Derrick Barge 26 in the same construction season for installation of the WI-7 to WI-8 pipeline and associated risers. On the instructions of BSCL, Mcdermott mobilized Derrick Barge 26 in February 1987. Derrick Barge 26 installed the pipelines and risers and was demobilized from the field on 10 March 1987. For the mobilization/demobilization of Derrick Barge 26 for the 1986/1987 construction season work, McDermott submitted a change order to BSCL with cost effect of US $ 1,271,820.00. BSCL has failed and neglected to make payment of the invoices for this change order.
4.67 Change Order no.7 relates to offshore installation or late-supplied equipment on the WI-8 , WI-9, WI-10 and N3 decks. As early as February,1986, the parties contemplated that certain BSCL-supplied equipment planned for installation by McDermott onshore would have to be installed offshore due to the projected late delivery. The cost of installing equipment off shore is much US $ 1,140,705.00. On 6 November 1986, McDermott reviewed the list of outstanding equipment and revised its change order to US $ 355,000.00. On the instructions of BSCL, McDermott performed the change order work and installed outstanding equipment offshore. BSCL has failed and neglected to make payment of the invoice for this change order."