The Żerań power and heat plant

Description of the project

The Żerań power and heat plant is located at Modlińska 15 Street in Warsaw. When it comes to the amount of heat generated, it is the second largest heat and power plant in the capital. The basic fuel is hard coal, while the plant also produces process steam. The heat and power plant works since 1954.

The scope of performance

The work of the CAS Team concerned a “turnkey” construction including: designing, manufacturing, delivering, assembling, commissioning, optimization and handing over of a complete gas-steam unit with one gas turbine, one condensing or backpressure steam turbine with a pseudocondensation system and a recovery boiler in the single or double system.

The CAS team prepared independent Expert Opinions at the request of a consortium of companies implementing the Agreement. These opinions concerned the extension of the completion date and the increase in the cost of building a new unit.

The subject of the quantum Opinion was the assessment of the increase in the project implementation cost due to the extraordinary and unpredictable increase in the cost of acquiring production factors, as well as the determination of the cost increase related to the extension of the completion date. The subject of the delay Opinion was to determine the impact of the COVID-19 pandemic on the timely implementation of the project.

As part of works CAS:

  • Prepared an analysis of the construction market, both for the period prior to the submission of the Offer by the Contractor and the period of construction works implementation, and performed an analysis of market forecasts for the period in which the Contract is to be completed.
  • Performed an analysis of the increase in the cost of the Agreement implementation resulting from the extraordinary and unpredictable increase in the cost of obtaining factors of production in terms of Labor, Material, Equipment, taking into account the change in cost that could be predicted by the Contractor and the Ordering Party, and the actual level of cost increase that occurred in the construction market from the moment the Contractor submits a Bid constituting a point of reference for the analysis in question.

The calculations prepared by CAS were the basis for determining the amount of the Contractor’s request, which was used in the lawsuit, and in the further course of the proceedings were analysed and negotiated by the Parties with the active support of CAS.

Benefits to the Client:

CAS’s opinion on the analysis of the impact of the COVID-19 pandemic on the timely implementation of the project made it possible to conclude an annex extending the completion date by 7 months and to award additional remuneration for the Contractor to compensate the costs of extending the works in the amount of approximately PLN 47 million net.

On the other hand, CAS’s opinion on the revaluation of the Contract Price, due to the unforeseeable increase in the cost of obtaining production factors at the time of submitting the offer, contributed to the increase in the Contract Price and, consequently, to the award of additional remuneration for the Contractor in the amount of PLN 30 million net.

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Company

The objective of CAS is to prevent disputes during various stages of project implementation and to resolve disputes through the specification of claims and defense against those claims.
As Experts, we provide support during negotiations, mediations and cases under litigation before courts and arbitral bodies to minimize their negative effects and maximize profits.

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Team of Experts

The CAS team consists of experienced Experts and Specialists, who have cooperated for over ten years. They have successfully completed projects in such sectors as: power engineering, buildings, infrastructure, sea (maritime sector), mining, crude oil and natural gas, manufacturing and industry.

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Contact

CAS Sp. z o.o.
ul. Pańska 98/12,
00-837 Warsaw, Poland

KRS: 0000659441
Regon: 366393384
NIP: 527-279-47-55

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+48 608 470 354
cas@caservices.pl

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