Property Case Study
Risk Analysis Of Two Gas Turbines/Heat Recovery Steam Generators
Echelon Australia was engaged by a project development company to conduct a risk assessment study on the supply, construction and operation of two gas turbines/heat recovery steam generators.
There were two risk exposures: the failure to deliver the project within the specified contract timeframe and the loss of the two gas turbines/heat recovery steam generators.
Echelon conducted a risk assessment of the design, delivery, construction and operational phases, determining that the most significant risk would be loss or damage whilst transiting or unloading the two gas turbines using a single vessel, potentially delaying the start of the project by up to two years.
This delay would have resulted in a payment of US$60,000 per day of liquidated damages for non-compliance with the contract completion date.
To mitigate the risk, the client transited and unloaded the gas turbines in two separate vessels, effectively halving the risk exposure.