Locations

BRAzIL

CONEXIG has presence in 14 countries around the world, in Brazil, CONEXIG LLC has experienced professionals in the following service lines: Claims & Dispute Resolution (CDR), Governance, Risk, Fraud & Compliance (GRFC), Contract & Project Management and Management Consulting. The other service lines are attended with the support of professionals from other countries.

Our professionals have participated in the resolution of disputes in large-scale projects throughout the Brazilian territory. We seek to support the good practice of infrastructure, engineering and construction projects in the Brazilian industry, solving their most complex problems and supporting our clients in any situation that may arise during any stage of the life cycle of their projects.

Some examples of projects developed in Brazil by our team are presented below.

Guilherme Lima the head of CONEXIG in Brazil. He holds a BSc in Civil Engineering and has over 20 years of experience in the construction industry. Guilherme has been  responsible for the execution of major and complex Oil and Gas EPCs and for the management of major projects turnarounds recovering project´s profits and minimizing risks. With extensive experience in dispute resolution, Guilherme has been an Expert Witness in over 30 disputes and is widely recognized by clients and peers. His sector experience includes construction, engineering, oil & gas, infrastructure, mining and others.

RELEVANT PROJECTS IN BRAZIL

RENOVA ENERGÍA: WIND ENERGY - CONTRACT AND RISK MANAGEMENT SERVICES OF THE SUPPLY CHAIN

The BNDES (Brazilian Development Bank) determined a methodology to certify and verify the development of parts for windmills in projects financed by them. Brazilian suppliers had to meet conditions in accordance with established milestones. National suppliers were developed to help the sector’s supply chain.

A team of specialized professionals undertook a risk mapping and assessment of Renova’s contract and supply chain with Alstom for the provision of the 127 wind turbines for Umburanas wind farm complex (355.5 MW). This was one of the largest onshore agreements in the wind industry globally at that time. The €320 million contract entailed the delivery, erection and commissioning of the wind turbines. It also included operation and maintenance services for over €1 billion. This was part of an agreement signed in 2013 for the supply of more than 440 wind turbines for a minimum installed capacity of 1.5 GW.

This work provided an objective analysis of the Company’s supply chain planning and execution process to provide specific equipment for its client’s Mill. The analysis considered the quality planning and the status of the development plan according to the schedule and the implementation plan. As a result, a report with conclusions was presented, which showed the differences and recommended the validation of the action plans.

Refinery: Dispute resolution related services

Felipe was a party appointed Quantum Expert on many arbitration disputes to settle differences related to EOT impacts and cost overrun related to the construction of a 210mba Brazilian refinery. Amounts disputed were, in average per proceeding, over BRL 250 million. One example includes the Quantum expert appointment by the owner against a Brazilian contractor on the coke plant contract. Matters disputed were presented in an expert report and in an arbitral tribunal. Cross examinations took place from the other party’s counsel and the tribunal itself. The Experts had the opportunity to debate their technical viewpoints through a hot tubbing section. Testimony was made in Sao Paulo (Brazil), in Portuguese, under the CAM-CCBC rules. Under the same refinery project, Felipe was a party appointed Quantum expert on many other disputes resolved under the same venue, law, seat and language.

Textile: Risk, fraud investigation and management consulting services

This project was commissioned by an Australian company operating in Brazil. The scope included an assessment of processes including Cash Receipts, Reporting of Sales, Cash Payments, Reporting of Payments, Supplier Relationships, Inventory Management and Management Review & Reporting. Major opportunities for improvements required immediate implementation and suspicious of fraud and process weaknesses observed resulted in the replacement of the CEO and CFO.

Mining and steel: Risk, fraud investigation and management consulting services

The service included the performance of a Health Check review of the Program Management techniques to manage project risks for one of the, at the time, largest Latin American mining and steel producers, which were applied to manage a US$14 billion expansion program (CAPEX). This included to identify measure, assess, mitigate and monitor their major project risks and involved the project engineering / procurement teams with specific focus on Scope management, Schedule management, Budget control and cost management, Risk and issue management, and Contract & Procurement Management. As a result of this assignment new CAPEX policies and procedures as well as revised internal controls were implemented throughout the organization.

Hydroelectric Power: Dispute Resolution UHE Estreito (CESTE)

Service included the conduction of a Quantum assessment of the direct cost as well as office overhead cost allocation and other indirect cost allocated to the project by a Brazilian contractor to the joint venture created to build the plant. The other company that integrated the JV was an international contractor who abandoned the job. The project consisted in the construction of the dam of a hydroelectric power plant with a total CAPEX worth about BRL 1 billion.

Trafigura/Mubadala Investment

Newly acquired private port super terminal dedicated to the movement of iron ore with an initial capacity of 50 m/year. The service included a risk assessment of the contracts, developing plans and support of claims and negotiation of claims and new contracts.

Approximately $ 200 million in claims were evaluated, obtaining a reduction of approximately 68%. To carry out the analysis of demands, an evaluation was developed on the demands derived from the interruption in construction, demobilization and demobilization of personnel. Also, there were additional costs due to changes in scope and the increase in the period to complete the work. In addition, an evaluation was conducted and supported the negotiation of contractual amendments made as a result of the claims. Finally, support was provided in the negotiation of new contracts, verification of regulatory requirements (Environmental Licenses and DUP) and support was provided in the adequacy of the project processes and procedures. Also, the critical risks for the project were reviewed and action plans were established to mitigate and/or eliminate them.