International Experts in Claims Analysis,

Dispute Resolution, and Project Management

for Process, Oil & Gas, Pipeline, Power, Industrial,
Infrastructure, and Building Construction Projects

L ONG INTERNATIONAL

Pipeline Project Claims Resolution Services

OVERVIEW
Long International, Inc. is a specialized
consulting company whose primary focus
remains the same today as it was in 1996
when the firm was foundedanalysis and
resolution of claims and disputes that arise
from the design and construction of major
capital projects worldwide. Our senior-level
personnel utilize their extensive experience
in pipeline projects, including installation,
project and construction management,

Long Internationals
Claims Analysis Process
Our professionals are experts in contract, insurance,
and surety bond-related claims and disputes
including their evaluation, analysis, preparation,
and resolution.
Our claims analysis process is:
Performed in Phases for better definition
and control of scope, time and cost;
Systematic to ensure our analyses are
thorough, our findings are credible, and
our opinions are defensible; and
Tailored to your specific needs regarding
services provided and resources utilized.

Wisconsin Gas Pipeline

Wyoming Gas/Oil/Product/Slurry/
and Water Pipelines

Senior-Level Resources
Members of our select group of consultants
typically have 20 or more years of experience
in the construction industry and offer unique
perspectives based on a combination of their
claims consulting skills, technical expertise,
and mud-on-the-boots practical experience
on pipeline projects.
Our professionals diverse experience allows
them to function as:
Your Support Staff

and cost and schedule control, to perform

A World of Experience

Your Technical Advisor

analyses of disputed change orders, requests

Whether its the tundra of Alaska, the deserts

of the Middle East, the heights of the Rocky
Mountains, or the depths of the oceans, Long
Internationals professionals have been there.
We have the experience you can rely on for
your claims analysis, preparation, and defense,
as well as your pipeline project support needs.

Your Solutions Provider

for time extensions and schedule delay

damages, and productivity loss claims.

Representative pipeline projects include:

Alaska Gas/Oil Pipelines
Arizona Water Pipeline
Arkansas Oil Pipeline
Brazil Gas Pipeline
California Gas/Product Pipelines
Canada Gas/Oil Pipelines
Colorado Gas/Oil/Product Pipelines
Germany Gas Pipeline
Illinois Gas Pipeline
Kuwait Gas Gathering System
Montana Product Pipeline

Your Expert Witness, or

A Neutral Third-Party

Phased Approach
Long Internationals standard work plan for
providing engineering and construction claims
analysis and expert testimony services on pipeline
construction projects is to use a phased approach,
as described on pages 2 and 3 of this brochure.
Our task assignments are dependent on the work
already performed by our client, the availability of
project documentation,
the issues in dispute,
and the timing of
required work products
that are defined by the
arbitration/litigation
schedule. Therefore, we
can make any necessary
adjustments to our
typical work tasks
described herein.

North Carolina Product Pipeline

Oklahoma Gas/Oil Pipelines
Russia Gas Pipeline
Saudi Arabia Oil Pipeline
South Africa Gas Pipeline
Texas Gas/Oil/Product Pipelines
UAE Dual-Flow Pipelines
Utah Gas/Oil/Product Pipelines

We have the experience you can

rely on for your claims analysis,
preparation, and defense, as
well as your pipeline project
support needs.

Pipeline Project Claims Resolution Services

PHASE II:
PHASE I:
Project Orientation, Preliminary Document Review, and
Work Plan Development
During Phase I, we first review any pleadings,
statements of arbitration, contractor claims, and
owner statements of defenses and counterclaims.
We then perform a preliminary review of the
relevant project documents prepared prior to and
during the execution of the project. Depending
on the scope of our assignment, the documents
that we often review include, but are not limited
to, the following:
Documents that Describe the Scope of
Work and Basis for the Contractual
Relationship that was Developed;

Document Database
Development and
Preliminary Analysis

In addition, we interview key project personnel

and discuss more completely the project problems
and issues. If possible, we also like to visit the
project site.

During Phase II, we perform tasks required by

our client as part of the arbitration/litigation
schedule. In addition, other potential Phase II
tasks often include the following:

It normally takes two to six weeks to perform

this Phase I work. The Phase I duration, depends
on the complexity of the case, the volume and
availability of key documents, and the availability
of client personnel, as well as any other tasks
that our client requests to be performed during
Phase I.

1. Develop Document Database

2. Analyze Contract
3. Review Invitation to Bid, Job Instructions,
Procedures, and Contractors Proposal
4. Review Drawings and Specifications
5. Review and Prepare (as required) a List
of Problems and Issues for Claims and
Counterclaims

Cost Estimates and Proposals;

The Drawings and Specifications that were
Used to Develop the Control Budget;

6. Review Approved and Unapproved/

Outstanding Change Orders

Pre-contract Correspondence and

Meeting Minutes;

7. Prepare a Preliminary List of Alleged Delays

The Contract Terms and Conditions;

8. Identify, Organize, and Review Schedule

Data

Execution Phase Correspondence;

Meeting Minutes;
Monthly Progress Reports;
As-planned Schedules and Schedule
Updates in Native File Formats;
Periodic Reports such as Manpower,
Man-hours, Equipment Utilization, etc.;
Job Cost Reports Including Control
Budgets and Monthly Cost Reports;

After we have performed a preliminary review

of the available documentation, we prepare
preliminary observations and recommendations
regarding the claim and counterclaim issues,
including our preliminary observations and
opinions on the relevant issues. We also develop
a Phase II work plan, schedule, and budget
corresponding to the scope of work necessary
to meet our clients objectives. We then discuss
our proposed tasks to ensure that our approach
is consistent with our clients needs.

Photographs and Videos if Available;

Pay Requests and Invoices;
Change Orders;

9. Identify any Schedule Software Conversion

Requirements
10. Review Schedule Analysis Methodology in
any Submitted Claims
11. Identify and Review Key Schedule
Information
12. Identify, Organize, and Review Contractors
Man-hour Data, including Control Budget
Planned Man-hours and Actual Man-hours
13. Identify, Organize, and Review Bulk
Material Quantity Data
14. Identify, Organize, and Review Cost Data

Requests for Information;

15. Develop Summary Schedule Variance

Comparisons

Submittals;

16. Develop Macro Man-hour Variance Analysis

Material Delivery Records;

17. Develop Macro Quantity Variance Analysis

Subcontracts; and

18. Develop Macro Labor Productivity Analysis

Other Relevant Documentation.

19. Develop Macro Cost Variance Analysis

20. Evaluate and Select Schedule Analysis
Methodology Options
21. Develop Phases III and IV Work Plans,
Budgets, and Schedules

Engineering and Construction Claims Analysis

Experience You Can Rely On...

22. Provide an Overall Assessment of the

Strengths and Weaknesses of Issues

Pipeline Project Claims Resolution Services

PHASE III:

PHASE IV:

PHASE V:

Detailed Analysis

Report Preparation

Arbitration/Litigation Testimony

After performing preliminary analyses of the

documentation and technical, schedule, and
cost issues, Long International then performs
detailed analyses that support opinions expressed
in our expert reports. The task descriptions that
are listed below are definitive analyses that
substantiate the preliminary findings, but they
may be tailored to the needs of our client, the
actual scope of work and opinions required, and
the deadlines of the arbitration/litigation.

The work products resulting from our detailed

analyses may take many forms, including but not
limited to claims/requests for equitable contract
adjustments, reports supporting the defendants
positions against claims, PowerPoint presentations,
or expert reports. One or more expert reports
may be required for arbitration or litigation.
Rebuttal reports may also be required to critique
the reports of other experts. In addition, some
arbitrations require that opposing experts meet
to attempt to narrow the issues. Reports may be

For each phase of arbitration or litigation, expert

testimony may be required. Our work to perform
this testimony includes the following:

1. Prepare Issue Packages for Contractors

Claim Issues and Owners Counterclaim Issues

1. Prepare for Testimony

2. Provide Expert Testimony at Depositions
3. Provide Arbitration/Litigation
Expert Testimony

2. Prepare Issue Summaries/Proof Charts

3. Prepare Detailed Narratives with
Document References
4. Develop Cause-Effect Relationships
5. Prepare Detailed Schedule Analysis
6. Prepare Detailed Productivity
Loss Analysis
7. Prepare Detailed Damages Analysis
Our Detailed Damages Analysis provides
adequate detail and supporting spreadsheets
to fully explain the amount of the claim and/or
counterclaim. Damages may arise from a variety
of problems, and we endeavor to calculate
specific damages for each problem if possible
from the data available. The cause-effect
relationships linking the damages to the
entitlement for each problem are demonstrated,
if possible. We often develop a Damages
Analysis Matrix for both man-hours and costs.
This matrix delineates work activities and cost
types on one axis and variances between budget/
contract values and actual/projected values
along the other axis. These man-hour and cost
variances are then allocated to approved change
orders, pending change orders, potential
contractor bid error, contractor performance
problems, compensable owner-caused problems,
delay, and loss of productivity, as applicable.
It is Long Internationals standard practice to
communicate frequently and clearly regarding
the status of our work throughout the
analysis process.

required to document this effort. For each claim

document, presentation, or expert report, our
work plan is as follows:
1. Prepare Draft Claim Documents/
Presentations/Reports
2. Review with Client our Draft Claim
Documents/Presentations/Reports
3. Prepare Final Claim Documents/
Presentations/Reports

Our consultants offer unique perspectives based on a combination of their claims consulting skills,
technical expertise, and mud-on-the-boots practical experience in pipeline projects.

Pipeline Project Claims Resolution Services

General Pipeline Construction Company Midwestern Oil Pipeline

CUMULATIVE PIPELINE PROGRESS

Actual vs. Should-Have Been
100,000
N O N C O M P E N S A B L E D E L AY

C O M P E N S A B L E D E L AY

16 CDs

90,000

Planned
Start
12 JUL

80,000

18 CDs

Planned
Finish

Actual
Finish

Should-Have Finished Date of 12 Aug10

But-For Reduced Crews Due to Lack of
Owner Inspection Crews

27 JUL

30 AUG

CONTRACTOR
PREMATURE
DEMOBILIZATION OF
CRAFT MANPOWER

60,000
(Linear Feet)

Cumulative Quantity

70,000

II M
MP
PA
AC
CT
T

50,000
Actual Pipeline
Installation

Should-Have Been Pipeline

Installation But-For Reduced
Crews Due to Lack of Owner
Inspection Crews

40,000
30,000

CONTRACTOR FAILURE
TO MOBILIZE SUFFICIENT
CRAFT MANPOWER

II M
MP
PA
AC
CT
T

20,000

OWNER FAILURE TO
PROVIDE SUFFICIENT
INSPECTION PERSONNEL

I M PA C T

10,000
0
1

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

July

Number of
Craft Labor
per Day

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

August

2010

No per Day

300
000
250
000
200
000
150
000
100
00
50
0
0

238 244 240 238 244

154
81

79

82

80

81

83

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

42

44

41

36

30

24

24

71

77

July
7/1/10

7/2/10

7/3/10

7/4/10

7/5/10

7/6/10

7/7/10

7/8/10

7/9/10

7/10/10

7/11/10

77

80

82

82

96

83

43

75

149 132 134

128 120

80

45

78

176

81

42

76

95 106

78

44

72

85

74

40

42

August

2010

L ONG I NTERNATIONAL

7/12/10

7/13/10

7/14/10

7/15/10

7/16/10

7/17/10

7/18/10

7/19/10

7/20/10

7/21/10

7/22/10

7/23/10

7/24/10

7/25/10

7/26/10

7/27/10

7/28/10

7/29/10

7/30/10

7/31/10

8/1/10

8/2/10

8/3/10

8/4/10

8/5/10

8/6/10

8/7/10

8/8/10

8/9/10

8/10/10

8/11/10

8/12/10

8/13/10

8/14/10

8/15/10

8/16/10

8/17/10

8/18/10

8/19/10

8/20/10

8/21/10

8/22/10

8/23/10

8/24/10

8/25/10

8/26/10

8/27/10

8/28/10

8/29/10

8/30/10

40

44

42

45

43

42

44

41

36

30

24

24

72

76

78

75

71

77

77

74

78

81

80

83

81

79

82

80

81

83

80

82

82

85

95

106

154

176

238

244

240

238

244

149

132

134

128

120

96

42

8/31/10

Schedule Delay Analyses

Experience Matters...

The contemporaneous and retrospective schedule

delay analyses performed by Long International
typically focus on comparing as-planned, updated,
and as-built project schedules to identify and
quantify delays to the critical and near critical
paths of the project. These delays may include
either variances in the duration of an activity or
variances in the planned and actual relationship
lag durations between predecessor and successor
activities. Concurrent delays are also analyzed to
properly understand the Owners and Contractors
liability for delay and impact damages. On Pipeline
projects, a progress chart is often plotted on a
time scale to demonstrate the impact of lower
than planned progress on the completion date,
such as shown in the graphic above.

Loss of Productivity Analyses

L ONG INTERNATIONAL

To determine the Contractors entitlement to

construction labor productivity loss claims, a
detailed assessment of contemporaneous manhours, crew progress, and pipeline length installed,
the timing of changes, delays and impacting
events affecting the work, and an allocation of
responsibility for the various causes of delay

and disruption is often necessary. Delays and

impacting events often cause the Contractor to
work overtime, perform work out of its planned
sequence or in parallel rather than in series, work
in weather conditions that are less favorable than
it reasonably planned, employ multiple shifts,
etc., all in an effort to make up time to mitigate
delay and disruption. Then, loss of productivity
analyses can be performed using methods such
as measured mile, earned value, overtime studies,
other industry studies, and the impact of changes.

Damage Analyses
Long International employs numerous methods
to analyze, demonstrate or disprove the Contractors
entitlement to recovery of increased costs as a
result of engineering and/or construction labor
productivity loss caused by delays and impacting
events for which the Owner and/or the Contractor
may be responsible. After the Contractors various
types of damages are identified, evaluated for
entitlement, and quantified, Long International
may utilize various methods of presenting such
damages, depending on the contract terms, legal
issues, and availability of data and documentation.

Long International, Inc. 5265 Skytrail Drive Littleton, Colorado 80123-1566 USA Telephone: (303) 972-2443 Fax: (303) 200-7180 www.long-intl.com