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Thu May 30 2024

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Fluor loses windfarm claims battle

19 Nov 12 US contractor Fluor is to take a $400m (£250m) hit from its contractual dispute with energy firm SSE on the Greater Gabbard offshore wind farm project.

Installation of turbine transition pieces at Greater Gabbard
Installation of turbine transition pieces at Greater Gabbard

Claims lodged by Fluor were thrown out by an arbitration panel. Fluor had been seeking to recover compensation for schedule and cost impacts arising from delays, disruption and productivity issues, which it reckoned were the client’s fault.

The 500MW project off the Suffolk coast, completed last year, is the world's largest offshore wind farm.

“Fluor delivered a quality project, and we are extremely disappointed with this unexpected decision, especially considering recent statements that acknowledge that all 140 turbines are commissioned and exporting electricity, and the overall performance is more than 10 percent ahead of the client’s expectations,” said chairman and CEO David Seaton.

Fluor said that it would now record a pre-tax charge of approximately $400m in the fourth quarter.

SSE said that there were still a number of related claims that remain to be determined and these will be finalised at the next stage of the proceedings.

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