Commercial damages
A damages model should behave like the industry it is modeling.
Industry expertise and damages analysis are integrated so utilization, throughput, pricing, operating costs, capital assumptions and market conditions are evaluated together.
Testing the but-for case
In capital-intensive industries, 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 or throughput have been available?
- Do price and margin assumptions fit the relevant market and contract?
- Are operating costs consistent with the production case?
- Did reliability, maintenance or bottlenecks limit output?
- What mitigation was technically and commercially available?
- Do market conditions support the assumed sales volumes?
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 market changes.
Project delay & cost overruns
Deferred production, capital escalation, ramp-up assumptions and asset/project economics.