Decoding Complexity - Nuclear

HKA DECODING COMPLEXITY NUCLEAR

Who we are HKA is the world’s leading consultancy of choice for multi-disciplinary expert and specialist services in risk mitigation and dispute resolution within the capital projects and infrastructure sector.

We also have extensive experience advising clients on the economic impact of commercial and investment treaty disputes and in forensic accounting matters.

In addition, HKA supports companies that conduct business with the US Federal Government, providing them with consulting services on complex government contracting matters.

We understand that nuclear energy plays a key role in a time of energy security, within a society transitioning to a carbon-neutral future, however, we recognize the nuclear sector presents a tremendous number of opportunities and challenges for contractors. HKA has more than five decades of extensive experience within the nuclear power sector employing world-renowned industry experts,

supporting clients on nuclear power plants and facilities domestically and internationally. Our global team of experts has supported clients involving almost 100 nuclear power plant facilities.

Below is a map that shows some of the nuclear plant locations our global team have worked on:

1

We are thought leaders in our space, decoding all aspects of complexity.

“ Renny Borhan

Clients have access to thought leaders with diverse skills and the ability to anticipate, investigate and resolve complex challenges.

”

Partner & Chief Executive Officer

ENQUIRIES@HKA.COM

HKA in numbers

2

3

ENQUIRIES@HKA.COM

Consulting services HKA has developed an international reputation for innovative approaches to preventing and resolving time and cost overruns on major construction projects worldwide.

Our highly experienced professionals — comprising commercial and contracts managers, quantity surveyors, cost engineers, contract administrators, planners and schedulers as well as technical engineering specialists — are available to support client teams at any stage of a project’s life cycle.

Many of our consultants are multi-qualified, holding both technical and legal qualifications.

Our experience covers bespoke and standard forms of contract used in the procurement of major projects in various jurisdictions around the world.

4

Our professionals are highly experienced in providing authoritative advice and assistance in selecting, drafting and reviewing construction contracts and establishing effective contract management procedures to reduce the likelihood of disputes arising.

We have unrivalled knowledge and experience in the preparation, appraisal, defence, negotiation and management of claims for extensions of time, prolongation, disruption, acceleration, loss and expense, changes in legislation and variations.

Our claims specialists investigate and analyse the cause and effect of events, prepare submissions and present cases. Our skills and experience are invaluable when analysing contractual entitlement and causation, and quantifying the effects in pursuing or defending claims. This thorough evaluation leads to the best solutions for our clients.

HKA is widely experienced in all forms of dispute resolution and in managing the dispute resolution process, including representing parties in mediation, conciliation and adjudication, and providing support in arbitration and litigation.

Our services Adjudication

Our international reputation for resolving time and cost overruns is hard-earned.

Credible, objective analysis and innovative approaches to dispute resolution save our clients time and money. Clients who rely on our pragmatic advice know they have the world’s most experienced claims consultancy on their side.

5

Preparation and evaluation of contract claims

•

Issue evaluation and advice

•

Preparation of applications for adjudication

•

Complex and major variations

•

Extension of time

•

Preparation of responses to adjudication

•

Delay and disruption

•

Acceleration

•

Provision of adjudicators

•

Prolongation costs

•

Forensic data analytics

•

Claims visualisation

•

System dynamics

Arbitration and litigation •

Strategy and advice

•

Provision of arbitrators

Dispute avoidance •

Dispute avoidance and management

•

Project audits and ‘health checks’

•

Dispute review board appointments

Mediation and conciliation •

Strategy and advice

•

Technical and commercial position papers

•

Provision of mediators and conciliators

Seminars and training •

Contractual awareness

•

Forms of contract

•

Claims for time and money

•

Adjudication and dispute resolution

•

Bespoke in-house courses

ENQUIRIES@HKA.COM

Expert services HKA is the world’s leading expert witness firm in the engineering and construction industries. Our teams draw on hundreds of experts and vast experience in every major industry sector and discipline. They have the commercial, financial, planning, scheduling, technical and language skills to get quickly to the heart of the most complex issues.

6

Our experts also quantify various types of damages involving lost profits, business valuation, business interruption, bankruptcy, class action or intellectual property, as well as leading fraud and regulatory investigations; and we have a similarly strong track record supporting contractors to the federal government.

HKA experts help to resolve disputes in expert determination, mediation, adjudication, arbitration and litigation. Experienced as party- or tribunalappointed experts, we are able to advise and, if needed, give evidence under cross-examination – including concurrent ‘hottubbing’ – in every jurisdiction.

Whether providing expert advisory, expert determination or expert witness services, HKA provides the unique, multidisciplinary service that combines quantum, engineering, delay, disruption, damages, and government contracts.

HKA was awarded Who’s Who Legal’s (WWL) Construction Expert Witness Firm of the Year in 2018, 2020, and 2022. We have ranked as the top firm in WWL’s Construction Expert Witnesses analysis for several years, with our leading quantum, engineering and delay experts being recognised for their skills and reputation

HKA has hundreds of forensic technical experts who operate in many disciplines. Our engineering experts operate in many disciplines, including architectural and building services; civil and structural; geotechnical; health, safety and environmental; instrumentation and control systems; marine; mechanical and electrical; metallurgy and materials; and process and energy.

Clients have seamless access to stand-alone experts or an integrated multidisciplinary expert team of problem-solvers, who thrive on decoding complexity.

Our multidisciplinary expert service streamlines and improves the entire dispute resolution process. Expert teams with the most comprehensive experience from our global network are assembled and deployed rapidly. This approach promotes greater collaboration and provides better value for money.

Our expert witnesses also feature in WWL’s Arbitration, Litigation, Quantum of Damages, Forensic Accounting, and Investigations analysis, selected for their excellence across a wide range of matters in dispute.

We share this unparalleled expert knowledge with industry stakeholders. HKA has long hosted knowledge forums, seminars and workshops in association with Senior Counsel, KCs, barristers, lawyers and trade associations around the world.

Recognition and professional standing WWL Construction Expert Firm of the Year, 2018, 2020, and 2022

Ranked #1 in WWL Construction Expert Witnesses analysis for seven consecutive years (2017-2023)

Ranked in the top 5 of the GAR 100 Expert Witness Firm's Power Index

HKA is the world’s largest Corporate Provider to The Academy of Experts 7

HKA employs some of the world’s foremost experts in many disciplines, including: •

Architectural

•

Project management

•

Mechanical engineering

•

Forensic accounting

•

Project monitoring

•

Metallurgy and materials

•

Commercial damages

•

Civil engineering

•

Power engineering

•

Business valuation

•

Electrical engineering

•

Process engineering

•

Business interruption

•

ESG

•

Structural engineering

•

Insurance claims

Systems engineering

Construction management

•

Buildings defects

•

Delay and disruption

Fire engineering Health, safety and environmental

•

•

• •

Construction failure

•

Financial quantum

•

Professional competence

•

Planning and scheduling

Instrumentation and control systems

•

• •

Marine engineering

•

Standard of care

Browse our Expert Centre to find the expertise that matches your needs www.hka.com/expert-centre

ENQUIRIES@HKA.COM

Advisory services Prevention is better than cure

The best strategic advice is informed by real experience. Having established, procured, and delivered some of the world’s largest infrastructure projects, in line with global best practice, we know how to set up projects and asset-intensive organisations for success.

HKA provides end-to-end services across the entire infrastructure lifecycle – from strategic planning, development and delivery to claims and disputes. This unique 360° insight means we understand the causes of project overruns and disputes better than anyone, so be we know how to make sure that projects go right from the outset.

HKA provides advisory services at every level, from project to enterprise, to help clients achieve desired outcomes with more clarity and certainty.

Creative and analytical problem-solvers, HKA advisors bring a holistic perspective and a track record of achievement to solve the complex challenges facing our clients.

These insights are underpinned by CRUX, our integrated research programme that tracks common causes of claims and disputes on engineering and construction projects worldwide. HKA colleagues have analysed and resolved these problems on live projects.

Drawing on our unmatched knowledge of the critical factors in projects’ distress or success, we can help steer your project to the best possible outcome.

V JECT DE ELOPMENT PRO

FEASIBILITY STUDIES

CH AN TI

DA TA

PMO

HKA ADVISORY

M E

HEALTH CHECKS

G OV

ERNAN CE

PROJECT & PROGRAM ASSURANCE

R AS

TRANSACTION MANAGEMENT

CONTRACT MANAGEMENT

PROJECT & PROGRAM MANAGEMENT

DESIGN MANAGEMENT

IN F

SUPPLY CHAIN OPTIMISATION

COST

INT EG R

RI

T R U C T U R E D ELIV E

RY

MERCIAL ADVISORY COM

PROJECT SE ED T A

COMMERCIAL STRATEGY

SK

STRATEGIC REVIEWS

GE

Strategy and optimisation

We work closely with our clients to select the investment choices best aligned to their strategic goals.

We help our clients to optimise the value of their assets through active project, programme and portfolio management and operational excellence.

•

Business Case Development

•

Strategic Review and Health Checks

•

Industry Engagement and Market Sounding

•

Maturity and Capability Assessment

•

Feasibility Studies

•

•

Project and Delivery Strategy Development

Project, Programme and Portfolio Frameworks and processes

•

Project Establishment, Planning and Management

•

Strategic Asset Management

•

Change management, including organisational design, stakeholder engagement and communications

•

Mobilisation of collaborative arrangements

•

Delivery readiness

•

Innovation and Legacy frameworks for industrywide programmes

•

Project Governance

•

Project Assurance

We deliver services across the commercial life cycle of projects and programmes to help you procure more efficiently and effectively.

INDUSTRY ENGAGEMENT

S ICE RV

CAPABILITY DEVELOPMENT

BUSINESS CASES

Project development

Commercial advisory

BENEFITS

STRATEGY & PLANNING

Y & OPTIMISATI ON ATEG STR

8

Our role is to provide incisive and timely support at critical stages in your asset’s development or investment lifecycle. We do this through our integrated services, working as your partner on portfolios, programmes, and complex projects,

or we can provide discrete elements of these services as a specialist advisor.

•

Delivery Strategy Development

Integrated project services

•

Transaction Strategy and Management

•

Contract Strategy

•

Commercial and Contract Management

We help you manage the information value chain and eliminate uncertainty so you remain in control of project and programme performance.

•

Commercial Due Diligence

•

Supply Chain Review and Optimisation

•

Review, development, establishment and implementation of P3M controls

•

Project management office start-up (PMO) and operations

We ensure that programmes and projects are completed safely and efficiently and achieve planned outcomes.

•

Risk management

•

Scheduling and planning management

•

Management of information and reporting

•

Project Management

•

Cost management

•

Programme Management

•

Document control

•

Portfolio Management

•

Change control and baseline management

•

Design Management

•

Construction Management

•

Product Assurance

Infrastructure delivery

ENQUIRIES@HKA.COM

9

Nuclear Experience

Global

Our experts have provided a wide spectrum of consulting and dispute resolution services on complex disputes for some of the most prominent and largest nuclear plants in the world and have experience with every type and phase of nuclear power construction

including: New Build, Operation/ outage, Decommissioning and Risk Management. The following are a representative selection of projects where HKA has provided a range of consulting, expert and advisory services.

10

11

SAN ONOFRE NUCLEAR POWER PLANT PENDLETON, CALIFORNIA, USA

OLKILUOTO 3 NUCLEAR POWER PLANT OLKILUOTO, FINLAND New build: HKA was engaged by AREVA NP in a continuing expert consulting role to support its dealings with the Employer, on the Olkiluoto 3 Nuclear Power Plant in Finland. HKA provided support and analysis in the preparation of the claims for arbitration. The ongoing provision of technical analysis and advice directly to senior members of the AREVA NP team. The preparation and submission of several quantum, delay and technical reports. These reports included the review and analysis of a large amount of data, to furnish expert opinions and recommendations in connection with the project. HKA built specific programming/analysis and automation systems to assist the Client and their expert teams with the automation of repetitive tasks and interrogation of multiple databases and we prepared an expert report with opinion on the original baseline program.

Decommissioning: HKA was originally retained to analyze damages incurred from the extended forced outage and eventual permanent retirement of San Onofre Nuclear Generating Station (“SONGS”). For this project, HKA analyzed the value of the lost electricity generation resulting from the early shutdown minus of costs Southern California Edison (SCE) avoided by not operating SONGS. This analysis culminated in a “benefit of the bargain” damages claim of more than $6.5B. HKA also analyzed costs SCE would have avoided had SCE not entered into a replacement contract with Mitsubishi Heavy Industries, Ltd. This analysis culminated in a “rescission” damages claim of more than $3.5B. Following the completion of the arbitration, HKA has continued to support SONGS during decommissioning in areas of state regulatory, vendor selection and disputes, Department of Energy litigation, and other strategic financial analyses to support C-suite decisionmarking. HKA personnel submitted expert reports and provided expert testimony on both direct and lost value damages during an International Chamber of Commerce (ICC) arbitration. Ultimately, the tribunal found the limitation of liability contract clause applied.

ENQUIRIES@HKA.COM

Nuclear Experience

Global

KOEBERG NUCLEAR POWER STATION, ESKOM CAPE TOWN, SOUTH AFRICA

12

Risk management: HKA has been engaged to support Eskom providing a risk view regarding a steam generator replacement. Our risk review included the establishment of risk using a typical Risk Breakdown Structure (RBS) approach. The analysis then testing the risk results using a simulation program. These results allowed the contractor to have an understanding of risk, and how the risk is to be managed in the form of an Owner’s risk register.

PLANT VOGTLE UNITS 3 + 4

13

WAYNESBORO, GEORGIA, USA

VIRGIL C. SUMMER NUCLEAR GENERATING STATION FAIRFIELD COUNTY, SOUTH CAROLINA, USA Operation & outage: The Virgil C. Summer nuclear expansion project began as a shared effort between VC Summer Nuclear Generating Station owners, SCANA, and Santee Cooper to add two reactors (Units 2 and 3) to the South Carolina plant. However, the decade-long, $9B expansion was bogged down by delays and cost overruns until the effort was ultimately abandoned in July 2017. HKA was retained by the owners of VC Summer to assist in analyzing the causes and magnitude of design, regulatory, schedule delays, and construction cost overruns, as well as pursuing alternative approaches for mitigating economic losses through available tax and equipment disposition strategies.

BARAKAH NUCLEAR POWER PLANT ABU DHABI EMIRATE, UNITED ARAB EMIRATES ENQUIRIES@HKA.COM

Nuclear Experience

14

Global

SIZEWELL B NUCLEAR POWER STATION

ITER, WORLD’S LARGEST NUCLEAR FUSION EXPERIMENTAL PROJECT

SUFFOLK, ENGLAND, UK

FRANCE

15

POINT LEPREAU NUCLEAR GENERATING STATION NEW BRUNSWICK, CANADA

HINKLEY POINT C NUCLEAR POWER STATION SOMERSET, ENGLAND, UK

DOUNREAY NUCLEAR POWER STATION CAITHNESS, SCOTLAND, UK

ENQUIRIES@HKA.COM

Nuclear Experience

Global

LUNGMEN NUCLEAR POWER PLANT NEW TAIPEI CITY, TAIWAN

BRADWELL POWER STATION SOUTHMINSTER, ENGLAND, UK

16

17

MILLSTONE & CONNECTICUT YANKEE POWER PLANTS NEW LONDON COUNTY, CONNECTICUT, USA

STEAM GENERATOR REPLACEMENT MODELS

WOLF CREEK NUCLEAR POWER PLANT BURLINGTON, KANSAS, USA

DUNGENESS POWER STATION KENT, ENGLAND, UK

PENNSYLVANIA, USA ENQUIRIES@HKA.COM

Key contacts

Our people We employ the best people with diverse skills and the insight to anticipate, investigate and resolve project challenges.

Tim Chitester

Howard Gendler

Partner

Partner

timchitester@hka.com

howardgendler@hka.com

We use our knowledge and experience to untangle the complex web of causes and effects for our clients.

At HKA, we have honed highly effective ways of working, which we always follow. Whether we are providing consulting, expert or advisory services, our people will:

We attract, retain and develop the leading talent from across the industry and a wide spectrum of disciplines. They are knowledgeable people with strong skills and experience, many of them multiqualified in technical and legal professions.

y Focus on your organisation’s business imperatives

Derek Nelson

Kim Reome

Partner

Partner

y Challenge conventional thinking and approaches y Work with you and your team to shape shared solutions

dereknelson@hka.com

kimreome@hka.com

Ken Metcalfe

Mark Gentry

Partner

Partner

kenmetcalfe@hka.com

markgentry@hka.com

As part of the world’s pre-eminent consultancy in the field, our people work on the most challenging and exciting projects with a rich variety of clients. HKA people live and breathe complex projects, and commit to our core principles.

y Use inventive thinking to deliver practical and innovative answers y Implement and carry through change, if required, as well as propose it y Act with integrity and respect to earn our place as your trusted independent advisor

18

Our people are leaders and problemsolvers, who thrive on complexity. By collaborative practices and innovative thinking, our clients receive an offering that is constantly evolving and improving in response to their needs.

ENQUIRIES@HKA.COM

19

HKA.COM

ENQUIRIES@HKA.COM