Hyperzone LB-1 Project

The Hyperzone LB-1 Project involved the construction of an advanced polyethylene production unit designed to produce a wide range of high-density polyethylene (HDPE) products in a single facility. These products, including plastic bottles, toys, automotive components, and other essential goods, highlight the versatility and innovation of the Hyperzone unit.

The project was marked by significant disputes between the owner and contractor. The owner, responsible for engineering and procurement, alleged defective work and withheld payments from the contractor. Meanwhile, the contractor, tasked with pipe, equipment, and electrical and instrumentation installation, claimed the owner failed to provide critical information in a timely manner. This delay allegedly caused inefficiencies and resulted in claims exceeding $85 million, covering unpaid invoices, lost labor productivity, and other associated costs. The owner counterclaimed damages of $89 million, citing direct costs and lost profits.

Peritia was engaged to provide expert analysis of the project’s timeline, critical path delays, and the responsibilities of both parties. Assessment included the Owner’s management, as well as the contractor’s efforts as a reasonably prudent contractor, its good faith effort to meet the contractual target dates, its conduct of project management, project planning, and scheduling. Peritia’s findings addressed whether the contractor’s charges were reasonable and necessary to complete the work, quantified unpaid completed work, and assessed additional compensation owed. These findings were presented in reports and expert testimony, offering clarity on the delays and associated damages.