Signal Demands Arbitration on GLDD Design Modifications

MarineLink.com
Tuesday, April 16, 2013
3-D Rendering of ATB Hopper (Photo: Business Wire)

Signal International, Inc., announced that work toward the design of an Articulated Tug/Barge Hopper Dredge for Great Lakes Dredge and Dock (GLDD) has been discontinued.

Signal and GLDD entered into a contract for both the design and build of an AT/B Hopper Dredge in August 2012, with construction originally scheduled to begin in January 2013. According to Signal, the project has undergone numerous delays and construction has not started due to a series of major design changes initiated by GLDD. These ongoing requests for modifications have continued even past the revised construction start date. Signal stated that they have been working with GLDD to firm up the design but the attendant escalating costs and schedule delays were not being addressed by GLDD in an equitable manner.

Signal retained PA Consulting Group, a leading management, IT and technology consulting firm, to conduct a strategic analysis of the program situation and options. PA’s analysis included assessing the impact of GLDD-driven design changes on the program cost and schedule, and options to improve the program. The results of PA’s program modeling and analysis showed significant delay and construction cost impacts from the changes, as well as, a variety of mitigation options that would reduce cost and schedule impacts if there were reprogramming and schedule adjustments. A senior member of PA presented their findings to GLDD and Signal management on March 21, 2013.

Signal CEO, Richard Marler, noted, “Our Company reaches out to customers when we see a red flag on a program with the idea that risks can be reduced if both sides understand the problem and work together to develop mitigating solutions. The primary consideration is providing quality products that help make our customers more successful while respecting the integrity of our company, our employees and community constituents.” GLDD’s response was to terminate Signal and find another shipyard to build the A/TB Dredge with a substantially revised specification. Signal has demanded arbitration under the contract to resolve the dispute.

www.signalint.com

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Maersk Sells Ven Drilling Barges

Danish shipping conglomerate A.P. Moller-Maersk said on Tuesday its offshore oil and gas drilling unit has sold its Venezuelan barge activities. Maersk Drilling

BAE Systems Awarded 'USS Hopper' Repair Contract

US Department of Defense informs BAE Systems Hawaii, Honolulu, Hawaii, is being awarded a not-to-exceed $22,905,907 undefinitized contract action to a previously

Upcoming Winter Tanker Market Same as Last Year?

Will the 2014/15 winter tanker market be a repeat of the previous one? Poten & Partners consider the question in their latest 'Poten Tanker Opinion'. As the

Legal

Deadliest Weekend Ever in the Mediterranean: UNHCR

More than 700 people fleeing Africa and the Middle East may have drowned in shipwrecks in the Mediterranean over the last week, bringing the death toll this year to almost 3,

Seaspan Agreement with GCII & Blue Water

Seaspan Corporation announced today that it has entered into an agreement with Greater China Intermodal Investments LLC and Blue Water Commerce, LLC to extend

Deal to End Lockout at Canada Uranium Mine

Canadian uranium producer Cameco Corp and the United Steelworkers union, which represents 535 workers at the world's largest uranium mine and a nearby mill,

Shipbuilding

Holland America Line's New Ship is ms Koningsdam

Holland America Line revealed the name of its new 99,500-ton cruise ship slated for delivery in February 2016 will be ms Koningsdam. While the name pays homage

USNS Fall River Delivered by Austal USA

The Navy informs it has accepted delivery of Joint High Speed Vessel, the future 'USNS Fall River' from the Austal USA shipbuilder. The delivery marks a major milestone,

Ingalls Delivers NSC Hamilton to USCG

Huntington Ingalls Industries' (HII) Ingalls Shipbuilding division delivered the National Security Cutter Hamilton (WMSL 753) to the U.S. Coast Guard today. The

 
 
Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2496 sec (4 req/sec)