Job #E22-072 Stellantis-Samsung Battery Plant

STATEMENT OF PROBLEM

Issue arose on project down in Kokomo, IN for the Stellantis-Samsung (SPE) Battery Plant. This project was deign build, however we were held to a GMP by the owner regardless of ongoing design changes post GMP. The design team never provided a complete finish designation schedule, therefore we experienced many scope gaps and CCDs. Process equipment (by owner) was not provided to the design team until after the GMP was delivered. Therefore, more trestle steel was added to carry to additional process piping across the site. Due to lack of design information, expectations by the ownership team, and late design changes the approval process for these changes has come with significant delays and large increases in cost due to galvanized coatings for exterior misc steel that was left out of the initial design work. Another issue that arose, was the specifications were written in a manner that left us with "either or" in a lot of circumstances, thus were clarified in RFIs, however never incorporated into the finish schedule by the design team, which left confusion by the design team while reviewing submittal's. Therefore, shop painting on trestle steel was not performed to the expected specification, and did not receive the epoxy coating as noted on the approved shop drawings submitted by Steel Services. 

ROOT CAUSE

COURSE OF ACTION

IFC pricing was completed in July 2023, and the painting contract was written and approved. GMP was delivered in August 2023, and misc steel coatings were added and submitted as an IOCC based on a SOW matrix created by estimating to clarify each material and whether it was shop painted, field painted, or galvanized as well as a comparison for what was to be included in the Painting Bid Package outside of the Steel bid packages at that time. However, process equipment platforms, AC Tower Platforms and trestle steel design was not complete and no allowances were carried. Therefore since more coatings issues were discovered post GMP, the YC3 team did what they could to submit and get the changes approved. However, ownership had elected to remove Yates from the job in October 2023, and brought on a new GC (Walbridge) to takeover the project. This transition of leadership also came with changes to the contract, moving this project from a GMP to a cost plus agreement. CCC stayed on as a JV partner, and without this transition none of the submitted IOCCs would have been approved by ownership due to RFI responses provided in prior to IFC.

LESSON FOR FUTURE PROJECTS

Require a complete finish designation schedule from the design team prior to delivering a GMP or finalized design. Any late design changes are outside of our control, however misc steel coating for exterior steel can be extremely costly and should be discussed/included in a finish designation schedule (including all misc door frames, window frames, exterior platforms, ladders, stairs, etc.). Ensure all final approvals and selections are made by ownership prior to any submittals' or fabrication of steel.