Chinese fabrication company ZPMC has been found “liable in contract” for the cracks in some foundation components supplied for the 504MW Greater Gabbard offshore wind farm in the UK.
The Technology and Construction Court in London made a ruling in principle this month supporting a claim filed by US engineering giant Fluor, with a case scheduled for next year to determine the level of damages.
The ruling from 7 October states in part: “The extensive cracking in weld repairs discovered at Vlissingen was the result of breaches by ZPMC of its obligations.”
It added: “There must be judgment for Fluor with damages to be assessed in the light of the findings set out in this judgment and any further findings which it may be necessary to make in order to dispose finally of all questions of damages.”
Fluor is seeking up to $400m but the initial judgment by Justice Edwards-Stuart indicates that “the full extent of its losses” will not be recovered.
ZPMC was ordered to pay an interim £1.75m to Fluor by 28 October to help offset the costs of the case to date. Hearings took place in February, March and April.
Problems with the foundations were first reported exclusively in subscriber-only newsletter reNEWS in 2009.
Flour was contracted by SSE and RWE as engineering, procurement and installation contractor at Gabbard in 2008. In 2009 some foundation components supplied on a subcontract by ZPMC from its Shanghai facility in China were found to have transverse cracking.
A dispute between Gabbard and Fluor resulted in the latter company booking a pre-tax charge of $400m in 2012. A final agreement on undisclosed terms was reached between the wind farm owners and Fluor in 2013.
All 140 Siemens 3.6MW turbines at Gabbard have been operational since September 2012.
Image: SSE
