Tag Archives: SSn

UK – Amec appeal refused over £94m costs on submarine job

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Amec’s legal battle to reduce the amount it must pay of a £93.6m cost overrun on a nuclear submarine jetty contract at Faslane has failed.

Now Amec and partners Morgan Sindall face a huge bill as they hammer out with the Ministry of Defence what proportion of cost overruns were properly incurred on the troubled project.

A costly legal battle has been running as both firms struggled to finish the Faslane SSN Berthing Project, first revealed in the Enquirer, more than four years late and at an expected final cost of £235.7m.

When the project was first awarded Amec was sole contractor for the jetty. But after Morgan Sindall acquired Amec’s construction arm for £26m back in 2007, the job became a 50:50 joint venture between the two firms.

Under the terms of the contract, the contractors are liable to pay the first £50m of overruns on the agreed maximum target price for the job, which has itself already risen from £89m to £142m.

This element was not challenged in the latest legal contest, but Amec held that the remaining £43.6m cost overrun should be split between client and contractor, with Amec due any costs howsoever incurred.

An arbitration panel rejected this saying the only costs payable were the actual costs reasonably and properly incurred within the contract.

A High Court judge has now refused Amec’s attempt to appeal this decision in a written ruling this week upholding the arbitration decision.

Source – Construction Enquirer

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India – Submarine import trap

INS_Arihant_SSBN

The Indian Navy needs to  spearhead the amalgamation of nuclear and  conventional submarine design and manufacturing capabilities

The Indian Navy has quietly and without fuss built up a great reputation for itself as a strategic-minded service. Its plans for distant defence are the best articulated, and its procurement of naval hardware mission-appropriate, reason why the government has accorded it the pivotal role in the strategic defence of the country.

As commendable is the Navy’s role in driving the country’s agenda for self-sufficiency in armaments in the teeth of sustained efforts over the years by the bumbling Indian government with the defence ministry and its department of defence production (DPP) to undermine it.

The DPP conceives its remit as only ensuring custom for defence public sector units while trying to trip up the private sector whose built-up capacity and capability can more quickly and substantively attain for the country the goal of self-reliance, which has so far only remained rhetoric. The Navy is the only service to have had a main weapon design directorate, generating designs for 43 of the 45 warships under construction in the country.

The Navy, moreover, has prevented indigenous projects such as the Tejas Light Combat Aircraft programme from sinking, by investing in the development of a navalised variant, managing a technical consultancy with US Navy’s aviation experts to iron out design kinks and shepherding this aircraft to the prototype stage. But the singular success story and its greatest accomplishment is the strategic submarine project. Starting from scratch, it has got to a point where the basic Russian Charlie-II class nuclear-powered ballistic missile firing submarine (SSBN) design has been enhanced, which changes will be reflected in the second and third units of the Arihant-class boats, and a nuclear-powered hunter-killer submarine (SSN) as follow-on to the Akula-II class boat (INS Chakra) on lease from Russia, is in the works. Continue reading