Dentons successfully represented a consortium of General Electric and SNC-Lavalin as general contractor in negotiations with PKN Orlen as employer/client concerning settlement of a PLN 1.4 billion contract for the construction of a 463 MW gas-fired combined-cycle power plant in Wloclawek.

 

Dentons' team involved in the settlement negotiations comprised Michal Jochemczak (Partner), Agnieszka Wojciechowska (Counsel), Tomasz Sychowicz (Senior Associate), and Agnieszka Rozalska-Kucal (Associate), with the support of prof. Piotr Machnikowski (Of Counsel).

 

The contract parties were in dispute as to the causes of project delays and as to their mutual claims concerning payment of contractual penalties, reimbursement of indirect costs incurred over the extended time, pricing of additional work, and reimbursement of amounts drawn down under a performance bond. Both parties' claims totalled hundreds of millions of zlotys. After nine months of negotiations the parties reached agreement on final settlement of their contract, allowing them to complete the project in accordance with their respective business purposes.