Commercial damages

A damages model should behave like the industry it is modeling.

Quincy’s work blends industry expertise and damages analysis so that utilization, throughput, pricing, operating costs, capital assumptions and market conditions are evaluated together rather than in isolation.

Testing the but-for case

Commercial damages depend on operationally credible assumptions

The numerical model is only one part of the analysis. In capital-intensive industries, seemingly small assumptions about production, feedstock, reliability, prices or markets can compound into very large claimed losses.

  • Was the assumed utilization rate operationally achievable?
  • Would sufficient feedstock, supply or throughput have been available?
  • Do price and margin assumptions match the relevant market and contract structure?
  • Are variable and fixed operating costs treated consistently with the production case?
  • Did reliability, maintenance, turnaround or bottleneck constraints limit output?
  • Were capital expenditures or investment expectations commercially reasonable?
  • What mitigation was technically and commercially available?
  • Do market conditions support the assumed sales volumes and timing?
Integrated analysis

Industry assumptions and quantum belong in the same conversation

Quincy’s approach connects operating data, process configuration, contractual obligations, market evidence and financial impacts. This is particularly important in lost-profits, business-interruption and project-delay matters where the but-for case can depend on both technical and commercial assumptions.

Lost profits & business interruption

Production capability, lost volume, price, margin, operating costs, mitigation and market absorption.

Supply & pricing disputes

Contract quantities, market indices, product specifications, pricing mechanisms and changes in market structure.

Project delay & cost overruns

Commercial effects of deferred production, capital escalation, ramp-up assumptions and asset/project economics.

Complex industrial disputes require industry reality.

Quincy Jones combines engineering, operations, market economics and damages analysis across energy and chemical-industry matters.

Contact Quincy at FTI