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McCormick Place Expansion South, Chicago, IL
Dispute Resolution, Claims Preparation and Project Management
Expansion
$650,000,000
4 million s.f.
A joint venture of some of the nation’s largest contractors was hired by the Metropolitan Pier Authority of the City of Chicago, under a design-build delivery system, to deliver this new convention center. GREYHAWK was hired by the largest contract holder, Pitt Des-Moines (PDM), responsible for the fabrication and erection of over 57,000 tons of structural steel. PDM designed the connections, produced shop drawings, fabricated virtually all steel in their Melrose, IL plant, and self-performed field erection. This massive project was completed in less than sixteen months.
Specific design issues manifested themselves in project changes that impacted PDM’s planned schedule and costs. At this point freezing the design and slowing the project, would have been warranted, but PDM had another approach. They hired GREYHAWK to advise changes to their internal project management that would more efficiently address the endless flood of changes from the project’s Engineer of Record.
After gaining control of the changes, GREYHAWK then focused on linking project events to specific project delays and corresponding cost increases. After twelve months of project management assistance and claims preparation, GREYHAWK recommended that PDM request an equitable adjustment of $18 million.
With more than six insurance companies involved representing the joint-venture design-builder, GREYHAWK designed and presented PDM’s case before an internationally-renowned Mediator. After one six-hour session of listening to the facts, the case settled and both the joint venture and the insurance companies reimbursed PDM in excess of $13 million.
Specific issues of the project included:
- Connection design
- Detailing
- Structural geometry and design changes
- Shop drawing submittal and approvals
- Disruption, delay, and acceleration
- Loss of efficiency
- Interpretation of the AISC Code
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