Legal Advisory on the Contract Management Case concerning Engineering, Design and Construction Services in Support of the Rehabilitation and Reconstruction of Banda Aceh – Meulaboh Road (BAM) Project
WIKA and USAID entered into Contract for the Aceh Road/Bridge Reconstruction and Rehabilitation Project in 2005 to clean up wreckage in Aceh following the 2004 Tsunami and to maintain portions of a temporary emergency road. The Contract was subsequently amended to include work involving the construction of road works between Banda Aceh and Lamno in the Aceh Province. Then, WIKA claimed to USAID seeking additional payment for claimed additional work under firm-fixed price (FFP) construction work. However, in May 2008, USAID issued a partial termination of convenience and on June 2008, the USAID Contracting Officer issued final decision denying all of the WIKA’s claims. WIKA requested the use of ADR as an attempt to resolve four of its five claims against the Government and USAID agreed to non-binding mediation.
WIKA asked Osana to provide the services of Dr. Harold Sullivan, an American Lawyer and Indonesian Consultant to advise and assist the Client relative to matters arising out of the contract. Dr. Sullivan assisted this SOE to evaluate, prepare and file four complex construction claims in the United States courts. As agreed between the parties, the four claims were successfully mediated and the suits dismissed.