Babcock and Wilcox Enterprises Inc. (B&W) report that they have ‘identified a structural steel issue at a renewable energy project in the United Kingdom’ at two projects that could cost tens of millions.
The energy and environmental technology and services company state that they believe the structural damage to be the result of an ‘engineer error’ by a subcontractor.
B&W have stopped work at two other projects with similar engineering designs pending further investigation.
The company have also estimated that the cost of work stoppage could reach up into the millions, reporting $10 – $15million, the equivalent of £7.4 – £11.1million in the UK.
B&W have not released any information concerning the location of the project.
Jimmy Morgan, senior vice president of B&W’s Renewable segment, said: “We are working diligently to assess the situation. Keeping in mind that the safety of our employees and subcontractors is our top priority, we chose to stop work temporarily at all three projects. We presently expect the total cost impact to the first project will be in the range of $10 to 15 million. We also presently expect the total cost impact to the other two projects to be below that amount. These estimates do not take into account possible recoveries from third parties, which we intend to actively pursue.”
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