Cases & Deals

Washington Group International settles $600 million purchase price adjustment dispute involving claims and changes on more than 20 mega-projects located around the world

Client(s) Washington Group International, Inc.

Jones Day represented Washington Group International, Inc. ("WGI") in a purchase price adjustment dispute involving a detailed analysis of construction claims, estimating practices, construction budgets, forecasts, and construction techniques on over 20 projects, including industrial processing facilities, transportation projects, and power projects such as: (1) San Roque Multipurpose Project — one of Asia’s tallest earth and rock dams on the Island of Luzon in the Philippines; (2) Damhead Creek Power Station — an 800 MW natural gas fired combined cycle power plant in Kent, England; (3) Ilijan Power Station — a 1200 MW diesel fuel and natural gas combined cycle power plant on the Island of Luzon in the Philippines; and (4) AES Red Oak, LLC Power Project — an 815 MW combined cycle power plant located in Sayreville, New Jersey. The projects at issue involved a variety of project delivery methods such as traditional design-bid-build, design-build-operate-maintain, and other forms of “turnkey” construction. WGI filed litigation and participated in a binding arbitration process related to this $600 million purchase price adjustment dispute arising out of its acquisition of these engineering and construction contracts intended to provide WGI with an international platform. The parties reached a mutually agreeable settlement at the commencement of the arbitration hearing.