Arbitration Forum recognizes part of overruns in construction Channel … – Terra Colombia

Arbitration Forum recognizes part of overruns in construction Channel … – Terra Colombia

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January 1, 2015 • 13:13

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An arbitral forum partially acknowledged Thursday a claim for cost overruns raised by the main consortium in charge of the works to expand the Panama Canal.

The Board Conflict Resolution, an arbitral body, recognized the pay $ 233 million to the consortium Grupo Unidos por el Canal (GUPC) on account of cost overruns in the construction of the third set of locks project to expand the waterway.

According to a statement of the Authority Panama Canal (ACP), the Board based the cost increase in prices and basalt concrete mixture used in the construction of the locks.

The amount represents half of the 463 million dollars claiming the business group for cost overruns on the project.

The Board Conflict Resolution also approved an extension of 176 days in the delivery of the work, of the 265 proposed by the consortium. The expansion should be completed by the end of 2015, a year after the original deadline.

“While there is a partial recognition in both directions in this instance, it behooves us to do a thorough technical and legal analysis of this decision for take the step that most suits the interests of the Canal, “said Jorge Luis Quijano, administrator of the route.

The Board Dispute Resolution is the second instance of claims after being submitted to the ACP. When one party is dissatisfied with the decision of the Board, has the option to raise the case to the Court of Arbitration under the rules of the International Chamber of Commerce