Representative Matters: Engineering, Procurement, and Construction

GAILLE PLLC has negotiated agreements and managed change orders for construction projects (including oil and gas pipelines, compressor stations, pump stations, wind turbines, and solar projects) with spending of several billion dollars, including utilization of a wide range of commercial structures: (i) lump sum; (ii) unit price; (iii) actual costs with fixed fee; (iv) actual costs with formulaic adjustment mechanisms; (v) guaranteed maximum price; and (vi) time & materials rates.

PIPELINE, PUMP STATION, AND COMPRESSOR STATION CONSTRUCTION

  • Midwest.  $600 MM tunnel construction project (actual cost basis and lump sum with actual cost basis items)
  • Minnesota.  $1 B construction contract for replacement of existing crude oil pipeline (actual cost basis)
  • North Dakota.  $250 MM construction contract for crude oil pipeline (unit price basis)
  • Texas.  $600 MM construction contract for 42- and 48-inch natural gas pipeline and associated compressor stations (guaranteed maximum price basis)
  • Oklahoma, Illinois, and Indiana.  Construction contracts for pump station upgrades at crude oil pipelines (lump sum basis)
  • Minnesota.  $200 MM of construction contracts for multiple crude oil pump stations (actual cost basis)
  • Texas. Construction contract for $100 MM natural gas pipeline (cost-plus fixed fee)
  • Gulf of Mexico.  Offshore and onshore crude oil terminal engineering and construction (formulaic actual cost basis)
  • Ohio and Pennsylvania. $200 MM EPC agreement for compressor station emissions upgrades (unit price basis)
  • Pennsylvania. $500 MM construction contract for ten new natural gas compression stations (formulaic actual cost basis)
  • Virginia. Construction and drilling agreements for new gas storage facility
  • Canada.  Tunnel construction agreement
  • Mexico.  Concrete coating agreement for ~500 miles of 42-inch offshore natural gas pipeline
  • Mexico.  Fixed price, lump sum offshore pipeline construction contract for ~500 miles of 42-inch offshore natural gas pipeline
  • Qatar and United Arab Emirates. EPC contracts related to the construction of $4 B natural gas pipeline and related facilities, including 48-inch subsea pipeline from Qatar to United Arab Emirates
  • Canada.  Camp agreement for construction and operation of labor camp in remote area (blend of actual costs and lump sums)
  • United States and Canada.  Suspension agreements for more than 100 construction and services contracts during COVID-19 pandemic

LIQUIFIED NATURAL GAS (LNG)

  • United States.  LNG engineering, procurement, and construction agreement
  • Canada.  LNG engineering, procurement, and construction agreement

TANK CONSTRUCTION

  • Texas.  Master EPC agreement for construction of crude oil tanks, with optionality for different kinds of commercial structures include actual costs with fixed fee that adjusts based on cost and schedule metrics
  • Minnesota.  EPC agreement for crude oil tanks

WIND, SOLAR, AND OTHER ELECTRICITY GENERATION CONSTRUCTION

  • Kansas.  Engineering, Procurement, and Construction Agreement for 200 MW wind turbine power project
  • North Carolina.  Construction agreement for 100 MW photovoltaic power project
  • North Carolina.  Construction subcontract for 50 MW photovoltaic power project
  • Nevada.  Engineering, Procurement, and Construction Agreement for 100 MW photovoltaic power project
  • Florida.  Construction Services Agreement for 75 MW photovoltaic power project
  • Texas.  $300MM Engineering, Procurement, and Construction Agreement for photovoltaic power project
  • Texas.  Construction contract for 100 MW solar power project
  • Colorado.  Subcontract for civil works for 175 MW photovoltaic power project
  • United States.  Wind Turbine Subcontract for use in multiple construction projects
  • United States.  Wind Turbine Design and Engineering Subcontract for use in multiple projects
  • Canada.  EPC agreement for onsite natural gas power generation for terminal facility
  • Canada.  EPC agreement for solar panel project (lump sum)

NUCLEAR POWER

  • California.  Nuclear Generating Station decommissioning project

TUNNELS AND DIRECT PIPE DRILLS

  • United States.  $600 MM high pressure tunnel (using tunnel boring machine) engineering, procurement, and construction agreement
  • Canada.  Tunnel construction agreement (using tunnel boring machine)
  • United States.  Longest (record length) Direct Pipe Drill into Gulf of Mexico
  • United States.  Long tunnel beneath community and highway

SERVICES AGREEMENTS, ENGINEERING SERVICES AGREEMENTS, & GEOLOGICAL ASSESSMENT SERVICES AGREEMENTS

  • Various.  Hundreds of master services agreements and standing agreements to facilitate pipeline services in the United States and elsewhere around the world
  • Various.  Wind turbine operations and maintenance agreements
  • Various.  Engineering Services Agreements for various midstream projects
  • Various.  Geological Assessment Services Agreements for various midstream projects
  • United States. Two dozen master construction agreements for executing small construction projects

PROCUREMENT AGREEMENTS

  • Japan, India, Mexico, China.More than $500 MM of steel and pipe purchase agreements with various pipe manufacturers
  • United States and Canada. $600 MM of compression purchase agreements
  • Various.  Purchase orders and procurement arrangements for all manner of pipeline-related facilities (pipe, compression, etc.)

CHANGE DIRECTIVES, REQUESTS, AND ORDERS

  • North America.  Management of change process for hundreds of different energy projects of all kinds, including drafting of change directives, responding to change requests, negotiation of change orders, and tracking of same
  • Texas.  Defense of pipeline owner receiving hundreds of change requests totaling more than $150 MM
  • Canada.  Defense of $30 million of loss of productivity and cumulative impact claims
  • California.  Filing and advocacy of COVID-19 claims for price adjustments on behalf of contractor
  • Texas. Force majeure claims, including those arising from Hurricane Harvey
  • United States and Canada.  Defending and making force majeure claims arising from COVID-19 under various construction and services contracts

INSURANCE CLAIMS UNDER CONSTRUCTION ALL RISK POLICIES

  • Texas. Insurance claims in respect of eight figure loss to offshore pipeline in storm
  • New York. Insurance claims in respect of nine figure loss of horizontal directional drill

MODEL AND FORM AGREEMENTS

  • Corporate Model Agreements Project.  Drafted model forms for the following agreements: (i) Construction Agreements (Lump Sum, Unit Price, Actual Cost Fixed Fee, Guaranteed Maximum Price, Actual Cost Formulaic Fee, and Time & Materials Versions); (ii) Master Construction Agreement; (iii) Master Services Agreement; (iv) Services Agreement; (v) Geological Assessment Services Agreement; (vi) Master Geological Assessment Services Agreement; (vii) Engineering Services Agreement; (viii) Master Engineering Services Agreement; and (ix) engineering and procurement modules for construction agreements
  • Model Construction Agreement.  Drafted form unit price construction agreement that has been used for several billions of dollars of projects to date
  • Model EPC Agreement. Drafted form engineering, procurement, and construction agreement used in hundreds of millions of dollars of projects to date
  • Model Master Construction Agreement. Drafted form of master construction agreement used in hundreds of millions of dollars of projects to date by thirty different pipeline contractors
  • Model Master Services Agreements. Drafted multiple form MSAs
  • Model Purchase Orders. Drafted multiple form purchase orders

PROJECT TEAM TRAINING

  • Agreement Handbooks. Drafted agreement handbooks for use in conjunction with form or model agreements; agreement handbooks provide an alphabetical, encyclopedia-like summary of key terms and conditions of frequently used agreements
  • Project Handbooks. Drafted project handbooks for use in conjunction with execution of major construction projects; project handbooks provide an alphabetical, encyclopedia-like summary of key rights and obligations of the suite of agreements governing the project
  • Annotated Agreements. Drafted annotated agreements for use with form or model agreements; annotated agreements identify provisions that are most likely to receive comments from counter-parties and provide fallback or compromise positions in order of preference
  • Training Sessions. Created power point presentations to train business units regarding model agreements and project teams regarding their rights and obligations; taught multiple training sessions at headquarters and project locations