Pegasus Global Holdings, Inc.

REPRESENTATIVE ENGAGEMENTS

Global
Africa / Middle East
Australia / Asia-Pacific
Canada
Caribbean
Europe
United States

Global:

Foster Wheeler Corporation, Corporate Risk Management Group, Global: Foster Wheeler Corporation initially engaged Pegasus GHI to develop its corporate Project Risk Management Program. This effort included development tools, such as a gap analysis on project management practices and project execution performance audits for all its business units globally. Special analyses were performed for the Board of Directors for Sarbanes-Oxley due diligence audits on ongoing projects. The Project Risk Management Group (PRMG) was established under the direction of a direct report to the CEO. Pegasus GHI personnel manned and ran this operation for its first year while building and training the group. Thereafter, Pegasus GHI supported ongoing PRMG operations.
Black & Veatch Corporation, Corporate Risk Management Program, Global: Black & Veatch engaged Pegasus GHI to review the existing Risk Management practice of all six of its operation divisions, propose specific tools to enhance the Risk Management practice and to provide training to corporate executives, project leaders and staff on these Risk Management tools and techniques.
Chiyoda Corporation, Corporate Risk Management Program, Global: Based upon a series of dispute resolution engagements globally, Pegasus GHI was engaged by Chiyoda to develop a Risk Management lessons learned study that enabled development of Risk Management processes and procedures that were corporately implemented into the Chiyoda project management system. Risk Management support services and project specific Risk Management program development and implementation also ensued.
Various Multinational Engineering and Construction Firms, Global: Pegasus GHI has been engaged in the last five years for performance audits of all their operations by the Boards of Directors. These engineers and contractors have included: Parsons-Brinkerhoff, Black & Veatch, Aker Kvaerner, Foster Wheeler, Chiyoda, Taisei and Babcock Power. This engagement experience also demonstrates our understanding and expertise from the perspective of those who are responsible for the execution of capital facilities programs and projects.

Africa / Middle East:

Haradh Arabian Light Crude Increment II Development Project, Saudi Arabia: Pegasus GHI was engaged by the Engineer-Procure-Construct (EPC) Contractor, Snamprogetti S.A. Ltd. (now part of Saipem), regarding the design and construction of this light crude development facility, including all associated equipment, tankage, utilities, buildings, piping and tie-ins with existing facilities. Pegasus GHI performed a review and analysis of change orders, requests for time extensions and requests for acceleration, cost analyses and damage quantification. Pegasus GHI also assisted Snamprogetti in the review and analysis of interim applications for claims received from its main subcontractor and performed analyses of schedule delay, causation and responsibility, as well as productivity and inefficiency. In addition, Pegasus GHI reviewed the costs associated with the subcontractor’s claims and analyzed the method used to quantify damages. Other issues analyzed included the timing, scope and complexity of alleged changes, workmanship, performance, project management and resource levels. Pegasus GHI’s analyses resulted in resolution of all issues before the completion of the Project.
LNG Facility, Angola: Pegasus GHI was engaged by an international Energy Producing Company (Owner) to evaluate the ongoing Risk Management process and actions in place by the Owner and that supplied by the Contractor for this $1 billion-plus Project. The focus of this effort was to manage the impacts of change and potential areas for disputes on the Project. An assessment of the Risk Management system employed by the Owner and how it interfaces with the Risk Management system of the EPC contractor was also part of the assessment.
Saudi Aramco Haradh Project, Saudi Arabia: Foster Wheeler Italiana (FW) requested Pegasus GHI to assist with the preparation and review of a proposed project schedule for Saudi Aramco Haradh to be submitted by FW. Haradh is an oil refinery which was constructed in Saudi Arabia by the largest oil corporation in the world Saudi Aramco. Pegasus GHI identified the requirements and assisted in preparation of the project resource loaded schedule to meet the requirements of the Saudi Aramco RFO. Additionally, Pegasus GHI took part in FW’s Risk Management review effort which provided FW’s CEO with a risk assessment of the project proposal.
Mineral Oil Plant, Alexandria, Egypt: Foster Wheeler France (FWF) executed a mineral oil plant for a subsidiary of the Egyptian petroleum company (AMOC) under a lump sum turnkey (LSTK) Contract. Pegasus GHI was engaged by FWF to assist in Risk Management evaluations regarding strategies to successfully complete the Project. Additionally, we were engaged to prepare expert analyses of the FWF and AMOC project management relating to various unpaid change proposals, delay and acceleration impacts and cost impacts. FWF filed for arbitration with the Cairo International Arbitration Centre. Pegasus GHI prepared a comprehensive expert report that was filed in the arbitration. The parties undertook pre hearing negotiations using the Pegasus GHI expert report that resulted in a favorable settlement to FWF.

Australia / Asia-Pacific:

Guam International Airport, Guam: Pegasus GHI was engaged by the Guam International Airport Authority (Owner) to manage the performance of the Authority’s capital facility program. Pegasus GHI took over the program after the first year of construction and provided services until the close of all issues. Throughout three and a half years of this engagement, Pegasus GHI also performed Risk Management services for the Airport Authority’s Board of Directors. We handled all issues and reported to the Authority’s Board of Directors on all aspects of matters arising between the Authority, construction manager, architect and Contractor during project execution. The Contractor filed numerous change order requests, alleging defects in the design along with disruption and delay claims. In addition, Pegasus GHI assisted the Authority in dispute resolution and conducted contracting officer hearings and provided expert testimony in Court. Upon conclusion Pegasus GHI provided a comprehensive evaluation of alternatives for completion of future capital facility programs.
Japan Ministry of Land, Infrastructure and Transport, Analysis of U.S. Public Capital Facilities Execution: To aid in reshaping the public capital facilities program of Japan (all infrastructure over a nominal value of approximately $1 million is planned, executed and operated by the central government), the Japan Ministry of Land, Infrastructure and Transport (MLIT) engaged Pegasus GHI to perform a comprehensive analysis of the practices of public agencies in capital facilities execution throughout the United States (federal, state, and local). Japan is undertaking an extensive overhaul of its public facilities capital programs in response to a decline in construction investments requiring more benefit for expenditures, severe price competition between contractors, low price bidding sought by all levels of public agencies, and insufficient public agency management to improve project execution efficiency needs. Pegasus GHI has been performing a comprehensive analysis of practices and options at federal, state, city and municipal levels, including: 1) the scope of responsibility of a public contracting agency; 2) the number of civil engineering officials directing public construction works in a public office of some particular jurisdictions; 3) the role of civil engineering officials directing and overseeing public construction works in public contracting agencies; 4) the role of consultants or third parties when engaged to assist public agencies in carrying out public works execution from planning through program / project completion (including their legal status, physical arrangement and location of personnel offices in relation to projects); 5) the powers, roles and liabilities of clients, consultants and contractors respectively; and 6) contracting content between advisors / consultants and agencies. Pegasus GHI also recommended appropriate practices applicable to the Japanese public contracting context. This engagement demonstrates Pegasus GHI’s global expertise and experience with capital facilities programs.
Japanese Bank for International Cooperation (JBIC), Tokyo, Japan: Pegasus GHI (the only non-Japanese partner of Kochi University of Technology and Nippon Koie) has been engaged by JBIC (the arm of the Japanese Government that is the corresponding equivalent of the World Bank for infrastructure lending and grants) to produce and implement a training program. The purpose of this training program is to build capacity to enable JBIC to manage capital facility programs by foreign governments who are recipient’s of JBIC lending. This program is intended to achieve all of the public policy objectives of JBIC, assure that JBIC’s funds do not become diluted through bribery and corruption, and that a sense of good governance is created. This engagement demonstrates the breadth of Pegasus GHI’s expertise and experience. One of the goals of performance auditing is the level of governance that is created in public agencies with capital facility programs.
Murrin Murrin Nickel-Cobalt Refinery, Western Australia: Pegasus GHI was engaged to assist the engineer / constructor in the second phase of a complex international arbitration. The plant is one of the first major lateritic nickel plants in the world and utilizes high pressure acid leaching of the nickel ore. Phase 2 of the case related largely to alleged defects in the design of the plant which allegedly prevented the nameplate capacity of 45,000 tons per annum from being achieved. Pegasus GHI provided expert services for the review and analysis of the quantum of a large range of claims. The analyses involved project management, scheduling, costs, project controls reporting, and what the defendant knew or should have known relative to a Trade Practices Act (TPA) suit in which AUS$1-plus billion was sought. In this phase of the arbitration, the TPA claim amount was reduced by 99.9 percent. Pegasus GHI also provided expert analyses and testimony regarding individual technical deficiencies, a detailed review of past costs claimed, and a review and analysis of future costs estimates of rectification projects. With regard to latter issues, reports and witness statements were submitted questioning aspects of the claimed quantum and providing alternative values. Pegasus GHI’s quantum analysis resulted in substantial reductions to the claimed amounts on many claims prior to final submissions in the case. Pegasus GHI participated in the Phase 2 Hearings and provided alternative values for most individual claims. Soon after the Phase 2 Hearings a settlement was agreed between the parties.
Parramatta Rail Link Project, Sydney, Australia: Pegasus GHI led an international panel to review and evaluate organizational and execution concepts for the full capital facility program that is currently being executed for the Parramatta Rail Link Corporation (PRLC). The PRLC is a corporation established and owned by the New South Wales Government, various agencies of that Government who interface or provide capital facility funds. This engagement was executed in early 2001. In 2002, Pegasus GHI performed an independent evaluation of the risks and value of accepting combined versus separate Civil Works and Rail Works contracts on the initial segment. This effort evaluated options for organization, risk reduction and efforts to start this important public works Project for New South Wales and Sydney. This engagement reflects Pegasus GHI’s recognized global expertise and experience with issues and risks involved on major Australian and international capital projects, and issues of their execution.
Telfer Gold Mine Gas Pipeline Project (GASNET), Australia: Completed in the second quarter of 2004, the 250NB Telfer Gas Pipeline transports natural gas from the receipt point downstream of the proposed Pilbara Energy Pipeline (PEP) metering facility at Boodarie near Port Headland and terminates at the delivery point at the Telfer Power Station some 460 kilometres inland. GasNet Australia was contracted to Newcrest mining to build, own and operate the gas pipeline system from Port Headland to Telfer for 40 years. The pipeline was required as Newcrest was expanding the existing gold and copper mining operations at Telfer in Western Australia. The Project included a new open pit mine that encompasses the existing pit and the development of a new ore body below the existing underground operation. Pegasus GHI was engaged on a management consulting basis to provide advice on the approval of the agreed baseline or contract design, procure and construction schedule and perform schedule compliance reviews on the monthly updates.

Canada:

British Columbia Ministry of Transportation and Highways, Vancouver Island Highway Project and British Columbia Building Corporation, British Columbia, Canada: The executive management of the British Columbia Ministry of Transportation and Highways (BCMOTH) through their Auditor engaged Pegasus GHI to perform a management evaluation of the introduction of state-of-the-art project management into their major project delivery system. Pegasus GHI evaluated the Vancouver Island Highway Project (VIHP) which was comprised of 127 individual projects and was the largest transportation program ever undertaken in British Columbia. After five years, management again engaged Pegasus GHI to evaluate the VIHP and its success in implementing the prior evaluation recommendations. Pegasus GHI then established Project Oversight Committees on the large new Trans-Canada Highway Project. The Committees provided continuous independent “health” checks of the projects and improved project management throughout BCMOTH. These projects demonstrate our global expertise and experience with an agency and our ability to evaluate and recommend various solutions to processes, costs and agency missions. The British Columbia Building Corporation (the prior Public Works Department for the Province) engaged Pegasus GHI to perform a Assurance Audit with regard to the public corporation’s performance on Capital Projects which were all the infrastructure and buildings not covered by BCMOTH. The audit reports were also submitted by the respective agency to the BC Auditor General as well.
Caster Building and Hot Strip Mill Facility, Sault St. Marie, Ontario, Canada: Pegasus GHI was retained by Walter, the Contractor on the Algoma Steel Inc. (Algoma) Caster Building and Hot Strip Mill Project. Pegasus GHI analyzed the Contractor’s overall work during the Contract period, including the interface with the overall plant Engineer-Procure-Construct (EPC) contractor. Walter was to construct the concrete foundations and selected slab work for a new building, the Direct Strip Complex, housing additional Caster and Tunnel Furnace Facilities as well as a Hot Strip Mill. The facility was constructed in an existing and operating steel mill owned and operated by Algoma. Walter experienced delays and additional labor costs due to issues outside of its control and not anticipated at the time of tender. Pegasus GHI identified and quantified the Contractor’s performance on the Project through substantial completion. Pegasus GHI performed analyses of both schedule delay and efficiency of labor. Pegasus GHI prepared an expert report and rebutted the EPC Contractor’s expert. Following the expert reports filed in the trial, a settlement was negotiated favorable to Walter.
Don Mills Station, Sheppard Subway, Toronto, Ontario Canada: Walter and SCI Construction (Canada) engaged Pegasus GHI to provide claims review services regarding the construction of the Don Mills Station for the Sheppard Subway in Toronto, Canada. The Don Mills Station Project included construction of a Parking Facility, Bus Terminal, Subway Station and Subway Tunnel. Walter executed a lump sum contract with the Toronto Transit Commission (TTC) for $85 million (Canadian) to complete construction in approximately three and a half years. The Project experienced delays that required acceleration to achieve the contract milestones on time. In spite of Walter’s acceleration effort, the Project was completed more than one year late. Project delays were primarily due to unforeseen soil conditions related to an excessive amount of contaminated soil; incomplete, uncoordinated and deficient design requiring changes and disrupting labor productivity; and changes that TTC failed to acknowledge, compensate Walter, and grant extension of time for. Pegasus GHI performed an evaluation of the contractor claims, including a schedule delay / acceleration analysis and a productivity analysis, to quantify impacts and determine responsibility for the project delays and cost overruns. Pegasus GHI presented its analysis at mediation which led to a negotiated settlement.
Lulu Island Wastewater Treatment Plant, Vancouver, British Columbia, Canada: Walter Construction (Canada) engaged Pegasus GHI to provide claims and change order review services regarding the construction of the Lulu Island Wastewater Treatment Plant in British Columbia, Canada. The Lulu Island Project included construction of new solids and liquid streams as well as upgrades to existing facilities for the Greater Vancouver Sewerage and Drainage District. The Project experienced numerous changes that delayed the work, required acceleration to mitigate delay, caused inefficiency, and resulted in 191 days of delay to project completion. Project delays that required acceleration were primarily due to numerous changes which delayed completion of the design work and disrupted labor productivity. Pegasus GHI performed an evaluation of the contractor claims, including change order, schedule delay and productivity analyses, to quantify impacts and determine responsibility for the project delays.
Muskeg River Refinery Project, Fort McMurray, Alberta, Canada: Fluor, a member of the joint venture created for the construction of the Athabasca Oil Sands Downstream Project, was responsible for engineering, procurement and construction management. The Project experienced serious cost overruns and delays. Pegasus GHI was retained by Fluor’s outside counsel, Fraser Milner Casgrain, to perform a review of various claim issues including claims associated with labor productivity losses and other design related impacts. Pegasus GHI’s analyses enabled Flour to negotiate a settlement of the issues that were analyzed.
Nairn Avenue Overpass Project, Manitoba, Canada: The City of Winnipeg, Manitoba, Canada engaged Pegasus GHI to evaluate the total delay / total cost claims filed by the General Contractor and its Surety Company. The claims sought recovery for delays and direct and indirect costs associated with the Nairn Avenue Overpass Structural Strengthening and Rehabilitation Project. Pegasus GHI reviewed the project documentation and performed a delay analysis quantifying the delay incurred, determining causation and assigning responsibility for those delays. Key items in the analysis related to bid milestones and determination of the critical path at key decision points. Three contractor decisions were determined to have affected the progress of the work: choice of girder preparation machinery, choice of suspended versus ground mounted scaffolding, and order of work. Pegasus GHI prepared an expert report which was filed with the Court of the Queen’s Bench. The case subsequently settled favorably.
Pipeline Project, U.S. / Canada: Pegasus GHI was engaged by the Owner / Operator of lateral facilities of a 1,900-mile, gas pipeline project extending from northwest Canada to the mid-western United States, regarding a dispute with the project’s engineer. Pegasus GHI analyzed issues involving engineering errors and omissions and design rework. Pegasus GHI also quantified the extent of delay and disruption resulting from the engineering and rework issues, as well as quantify the resulting damages.
Prince George Regional Correctional Centre, British Columbia, Canada: Pegasus GHI evaluated project performance on the Prince George Regional Correctional Centre in British Columbia for the General Contractor. Pegasus GHI reviewed project documents, interviewed the Contractor's on-site personnel and performed project schedule delay and disruptive analysis. The analysis identified specific schedule delays and impacts caused by inadequate contract documents and quantified the Contractor's impacts. On behalf of the Contractor, Pegasus GHI assisted in the successful settlement negotiations with the Owner.
Taylor LNG Plant, British Columbia: Pegasus GHI’s assignment entailed the analysis of the damages from a fire accident on a deep-cut extraction gas plant located in Taylor, British Columbia, Canada. Our analysis was for the insurance company to determine the true extent of the schedule and scope relating to the fire accident. The analysis included evaluation of the scope to assess whether enhancements were undertaken and to what extent the scope was not associated with the fire damage, as well as any schedule impact resulting from those enhancements. The analysis was in the context of a fast track repair operation and included the scope of equipment replacement and installation. Based on our findings, the parties were able to reach an equitable resolution.
Toronto Transit Commission Subway Line Expansion, Toronto, Ontario, Canada: Pegasus GHI was jointly engaged by the Ministry of Transportation of Ontario (MTO) and the Metropolitan (City) Council of Toronto to evaluate the project risk for the planned capital facility expansion of three Toronto Transit Commission (TTC) underground subway lines. This $450 million program had elements of design build and traditional delivery. The capital facility program evaluated involved Issues of execution improvement and options that would improve the ability to complete the full expansion within the funding available. Pegasus GHI made recommendations on improving the overall project management processes, the health of the processes, and the interface between MTO and Metro operations that had adversely affected execution efficiency.
Vancouver Millennium Sky Train Project, British Columbia, Canada: Pegasus GHI was retained by SAR Transit Joint Venture (SAR), the joint venture Contractor for civil works, to conduct an independent schedule delay analysis and causation determination regarding the delayed completion of the Sky Train Project as originally established within the Agreement between SAR and the Owner (RTP Project 2000 LTD). Sky Train was a design-build project for approximately 16 kilometers of elevated guide way through a congested urban area, running alongside operating railway tracks and busy highways through environmentally sensitive areas. A late notice to proceed, right-of-way issues, and critical rail system and vehicle requirements forced the Contractor to reschedule the Project three times. Re-sequencing of work caused delay to the critical path of the Project. Pegasus GHI calculated and evaluated the delay through the Project; the root cause for each impacting issue, event or situation; responsibilities for each issue; and the resultant impacts. The matter settled through mediation in favor of the Contractor (Client).
West End Water Pollution Plant, Winnipeg, Manitoba, Canada: The City of Winnipeg, Manitoba, Canada engaged Pegasus GHI regarding the contract to construct the expansion of the West End Water Pollution Control Centre by Kraft Construction. Kraft alleged constant change and deficiencies in design by Reid-Crowther and poor contract administration. Pegasus GHI provided an independent and objective evaluation of the issues and evaluated claims of design deficiencies, poor contract administration and extra shoring claim. Pegasus GHI identified and evaluated areas of cost which had been impacted and determined reasonableness and extent of impact through to project completion.

Caribbean:

Bombax Pipeline Project, Trinidad and Tobago, West Indies: BP, the lead oil Owner / Operator of this gas field 50 plus miles offshore, undertook various production improvements and constructed a new subaqueous, gas pipeline. BP engaged Pegasus GHI through its external Counsel to review various risk procedures and project management approaches / effectiveness. A specific audit focus addressed potential claims issues (including the preliminary issues relating to the Contractor for dredging, placement, backfill and testing of the pipeline) based upon both lump sum and unit price agreements. The audit specific Project was the new pipeline that conveys gas from production platforms in the Gulf of Paria to onshore processing facilities for LNG exporting. At 48 inches, this thin-walled marine pipeline is one of BP’s largest diameter pipelines worldwide. Issues examined by our team included risk areas, such as delay, disruption, dredge material scope / supply, workmanship on geotechnical and hydrology design, and workmanship regarding means and methods. Actual audit results enabled minimal impacts in completing and commencing operation of the facilities.

Europe:

Pipeline and Infrastructure, Sakhalin Island, Russia: The international Engineer-Procure-Construct (EPC) Contractor for Sakhalin One Project engaged Pegasus GHI to perform contract and risk management services on this pipeline and related infrastructure works for four years. Pegasus GHI assisted the EPC Contractor in resolution of all major issues.
Cross London Rail Link, London, United Kingdom: Pegasus GHI was appointed (January 2007) as the Independent Reviewer for the United Kingdom Government, UK Department for Transport (DfT) and Her Majesty’s Treasury (HMT), relative to the Cross London Rail Link (Cross Rail). The Project is estimated as being in excess of £12 billion and will take over seven years to complete. It is the most complex public works project ever undertaken in the United Kingdom. The full scope includes detailed engineering, procurement, construction and commissioning of train service across London. Pegasus GHI was engaged by the United Kingdom government (the Department and Her Majesty’s Treasury) to conduct a standard of care analysis of various (technical, cost and schedule) planning and management elements of the Project as the Independent Reviewer. The first task under this engagement (2007-2016) was to conduct a standard of care analyses on the project funding estimate and the Risk Management program instituted for the Project. Pegasus GHI established the relevant comparative standards for each of those project elements; reviewed all of the appropriate standards established by the government and its consultants; and analyzed the results of and then reported to the government as to whether or not the policies, procedures, processes, systems and results met the expected standards of care established within the government and the industry at large. The Pegasus GHI team worked directly for the Department for Transport in conducting this independent review, which was then submitted to the Department for Transport, Her Majesty’s Treasury and Parliament. Pegasus GHI’s analysis confirmed that the project execution team (a joint venture of Cross London Rail Link, London Underground and Bechtel) had acted prudently in the preparation of the specific analyses, used Best Industry Practices and Procedures, and the results were reliable. The critical aspect of the Risk Management process was that the estimate prepared for DfT was to be exclusive of any contingency, as the contingency was to be set using an independent Risk Management program and model to estimate effort. The Project involves several stakeholders, ranging from the London Underground to the various franchisees along the route of the proposed heavy rail system. The Project consists of both surface and underground line segments and is intended to intersect and coordinate with existing tube facilities and some stations. In short, the Project is large (a megaproject), complex (multiple stakeholders) and politically sensitive. The version of the risk register and model that Pegasus GHI examined was well developed and comprehensive. Pegasus GHI’s support on this Project is ongoing and has provided Pegasus GHI with a sound understanding of practices, industrial constraints and issues in the London construction industry.

United States:

City of Seattle, Targeted Capital Facilities Audits of Seattle Public Utilities and Seattle Department of Transportation, Seattle, Washington, United States: Pegasus GHI was engaged to conduct a performance audit of capital facilities programs of these two city departments. The audit targeted the processes that caused the most creep in budgeted values. The audit was a precursor to the development of the subsequent evaluation of options available to the City in revamping their capital facilities programs. The results of the respective audits were used to test the various options. This experience demonstrates Pegasus GHI’s ability to evaluate the costs that drive ultimate cost incurrence in capital facilities programs and the ability to also propose and test various recommendations for improvement.
Electric Utility Audits: Pegasus GHI has been engaged to do performance audits for capital facility programs or projects involving 40 United States private electric utilities. These performance audits cover everything from planning through commercial service. These engagements demonstrate our capabilities with respect to private utilities to the capital facilities programs / projects that cover all of the subjects for the Port audit. All of the audits have been conducted according to the “Yellow Book.”
Joint Legislative Audit Committee, Olympia, Washington, United States: Under a contract with JLARC Pegasus GHI was engaged to establish the scope of a Capital Project Delivery Performance Audit to be conducted of the capital project delivery management systems used by state supported higher education institutions. In addition to assisting in the creation of the project management audit scope of work, Pegasus GHI reviewed the results of that audit and provided JLARC with an evaluation of the audit conducted. In a second element of that engagement Pegasus GHI conducted a benchmark comparison of higher education capital project management costs in Washington and in other states. As part of that benchmarking audit, Pegasus GHI was to “… advise JLARC on those cost elements, factors and methods which are most reliable and available nationally in order to enable JLARC to conduct relevant cost comparisons between national and Washington capital construction projects.” This last element of our scope of work was not limited to higher education but was intended to provide JLARC with a more general framework within which to conduct future benchmarking audits of State capital construction projects. A written report was prepared and delivered to JLARC which summarized Pegasus GHI’s findings. During this engagement Pegasus GHI worked directly with JLARC staff.
LNG Terminal Project, Hackberry, Louisiana, United States: Pegasus GHI was engaged by Dywidag International GmbH, a Dutch design-build and turnkey contractor. It was a selected bidder for a new LNG Terminal Project, which included design, material supply, fabrication, erection, testing and precommissioning of Two Liquefied Full Containment Natural Gas Storage Tanks of 160,000 m3 usable capacity at Hackberry, Louisiana. We performed a Risk Assessment review of bid documents (Conditions of Contract, Owner’s required modifications, Instructions to Bidders, and Technical Specifications), and a Summary Project Management and Risk Profile. These deliverables assisted Dywidag to establish mutually agreed conditions in its negotiations with the Owner / Operator that would reduce and / or eliminate project management and risk potentials.
Marathon Oil Corporation, Refinery Expansion Project, Refinery Expansion Risk Assessment, Garyville, Louisiana, United States: Pegasus GHI was engaged to develop the optimum contracting strategy and project delivery method for a refinery expansion in the United States exceeding $2 billion. Pegasus GHI employed its own proprietary techniques to arrive at the recommended structure and contractor incentive programs.
Port of Seattle, Audit of Project Management Processes, Change Order Values and Decision Made on the B2 Outbound Baggage Facility Project, Seattle, Washington, United States: Under an addition to its three year contract as the Port’s claims and dispute consultant, Pegasus GHI was asked by the Director of the Port to conduct an audit of its processes and procedures for management change orders, including the processes for valuing changes, reaching decisions relative to the implementation of changes, processing changes and negotiating changes and change values with contractors, subcontractors and vendors. After addressing the capital project change order process in general, Pegasus GHI was asked to examine in particular the management of changes made during the execution of the B2 Outbound Baggage Facility Project, and advise the Port as to whether or not, in our opinion, the Port’s actions (1) met industry standards, (2) conformed to the Port’s own change management policies and procedures, and (3) were reasonable. Finally, in addition to a written report of the Pegasus GHI findings, Pegasus GHI met with the various managers from the Port management and its capital project management staff to advise them on actions which could be taken to improve or strengthen the Port’s management of changes in capital construction projects. This engagement demonstrates knowledge of a particular area and the improvement that can be achieved in the execution of Port capital projects.
Port of Seattle, Central Terminal Expansion Project, Project Auditing, Seattle Washington, United States: Twice Pegasus GHI has been engaged by The Port to act as its in-house project management and disputes consultant during the long-term expansion and upgrade of the terminal facilities at SeaTac International Airport. During those engagements Pegasus GHI has provided “on-call” services to the Port’s capital project management staff relative to contract formation, management process audits, industry standards, lessons learned and claims and disputes. Each of these services has been done in immediate response to a need identified potential problems by the Port as the individual project elements in the Ports multiyear, multibillion dollar expansion and improvement program has been in progress (with the exception of runway 3, which we have not heretofore been involved). The services have included the examination and evaluation of contractor operations, examination of change order pricing, auditing of project management of particular elements of the total program, research of industry standards (i.e. overhead calculations) and expert claims and disputes analysis and opinion (for negotiation, DBR, mediation and arbitration in conjunction with Port counsel).
Princeton University, Risk Management Analysis of the University’s Capital Construction Program, Princeton, New Jersey, United States: Pegasus GHI was engaged to conduct a GAPP Analysis™ of Princeton’s capitol construction program in order to identify current university management practices which did not meet the current “best practice” standards within the construction industry at large. In particular, Princeton was concerned that its project delivery, Risk Management and project control management practices were substandard, which was resulting in significant cost overruns and delays on its larger capital improvement projects. Following the completion of the GAPP Analysis™ Pegasus GHI worked with Princeton to design and implement a global Risk Management program for its capital construction program and trained its staff to utilize the Risk Management system. In addition, Pegasus GHI served as a consultant and auditor for a specific capital construction project as it was designed and constructed in order to ensure the Risk Management program was working as intended. Pegasus GHI also compared and contrasted the University’s project management and control practices against current best practices or standards within the industry and advised the University as to how those practices found below industry standards could be upgraded and improved. Finally, in a specific confidential report to the Vice President for Facilities, Pegasus GHI examined the University’s current staff and operations, providing observations and advice relative to how to upgrade and improve its implementation of best construction management practices at the University. This engagement covered all of the Capital Facility Program; form maintenance; small, medium and large projects; and a new college campus within the University.
Sacramento Municipal Utility District Consumables Power Plant Construction Project, California, United States: Pegasus GHI was engaged by a municipal utility district (District) in California to audit the progress of work on a large combined cycle power project under construction in mid-2004. Under that original engagement Pegasus GHI audited the actual progress of the Project against the status of the Project as reported by the Contractor. During that audit it became apparent that the reported progress was far short of the progress as reported and, in addition, that the Contractor was not executing the Project to the terms and conditions of the contract established between the Contractor and the District. Pegasus GHI was assisting the District relative to project management and execution improvements when the Contractor was terminated for cause. Following termination, Pegasus GHI was engaged by the District to examination, analyze and opine as to the execution of the Project from initiation of the Project to termination of the construction contractor (which at the time of this proposal is ongoing). Pegasus GHI’s work has included auditing the Contractor’s actual management of specific elements of the Project (i.e. planning, estimating, cost control, scheduling and quality control) against the requirements of the construction contract; District, local, state and federal standards and codes; and generally accepted industry standards. Pegasus GHI produced expert reports in this Federal Court litigation and still expects to provide expert testimony during trial. This engagement demonstrates current knowledge regarding capital project execution, the cost pressures such projects may incur, the public policy goals of public bodies, and the problems to which public agencies are subjected during execution of capital projects.
Washington Nuclear Plants 1 to 5, Washington, United States: Pegasus GHI was engaged by the Washington Public Power Supply System (WPPSS) and their counsel to evaluate antitrust issues regarding the WPPSS Nuclear Generating Stations. Unit 2 is a 1,100 MWe Boiling Water Reactor with the Nuclear Steam Supply System (NSSS) system supplied by General Electric. The turbine generator was supplied by Westinghouse. The Architect / Engineer was Brown & Root and the Constructor, Bechtel. The unit is located in Richland, Washington. Units 1 and 4 were to be 1,250 MWe (PWRs) with the NSSS System supplied by Babcox and Wilcox. The turbine generator was supplied by Westinghouse. The Architect / Engineer was United Engineers and Constructors, and the Constructor, Bechtel. Neither unit was completed. Both units are located in Richland. Units 3 and 5 were to be 1,240 MWe PWRs with the NSSS system supplied by Combustion Engineering. The turbine generator was supplied by Westinghouse. The Architect / Engineer and Constructor was Ebasco. Neither unit was completed. Both units are located in Satsop, Washington. Pegasus GHI was engaged to demonstrate bid rigging by the six largest electrical contractors in the country and evaluate damages resulting there from. The antitrust litigation involved the electrical contractors who bid on the five WPPSS units. Pegasus GHI analyzed the bid estimates and related records of the Contractors to develop how each bid was rigged. Pegasus GHI then determined from the Contractors’ own records the amounts built into the rigged and predetermined “winning” bid. Following extensive depositions of Pegasus GHI personnel, the litigation was settled. Following settlement, we were engaged by WPPSS to evaluate the capital costs that the respective groups of bondholders should bear in a Federal Court action. We evaluated the capital costs of Units 1 and 4, and Units 3 and 5, prepared an expert report, and gave testimony. The Federal Court accepted Pegasus GHI’s analysis. These engagements demonstrate that Pegasus GHI has the expertise and credentials to analyze capital facility costs, and to evaluate when and how such costs are incurred.
West Point Secondary Wastewater Treatment Expansion Project, Seattle, Washington, United States: Pegasus GHI audited the structure, procedures and performance of the management of the West Point Secondary Expansion Project (WPSEP) for Metro in Seattle. WPSEP was the addition of secondary treatment facilities to the existing 133 MGD treatment facilities. Metro retained full responsibility for program management and performed the construction manager role. As construction manager Metro had responsibility for the oversight of engineering and all construction contracts. Additionally, Metro had direct responsibility for materials and equipment procurement and project control functions. The Pegasus GHI audit scope included evaluation of all Metro program management and construction management functions; a review of procedures, systems and contracts; identification of processes that led to increased costs; and benchmarking of cost incurred through the date of the audit. Pegasus GHI made an oral presentation to Metro management and issued a written report which included findings and recommendations on project performance enhancement.
Wisconsin Public Service Corporation (WPSC), Green Bay, Wisconsin, United States: WPSC engaged Pegasus GHI to perform a Pegasus GHI GAPP Analysis™ on its Capital Facility Program. This analysis included the review of the corporate systems in place and the review of two specific WPSC projects. Pegasus GHI produced a GAPP Analysis Report, which made several recommendations to WPSC for improvements to its Capital Facility Program, most of which are currently being implemented. This engagement demonstrates our capacity to successfully carrying out program and project audits in the capital facility arena for utilities in private sector.

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