27 February 2026
Quantum Analysis Consulting for Energy and Power Generation Projects:
Calculating Prolongation and Disruption Costs
Energy and power generation projects are among the most capital-intensive and technically complex developments in the construction sector. From gas-fired power plants and renewable energy installations to large-scale transmission infrastructure, these projects operate under tight programme, funding, and regulatory constraints. When delays, disruption, or cost overruns occur, the financial implications can be substantial.
Quantum analysis consulting plays a critical role in transforming cost records into defensible, evidence-based financial claims.
In energy sector disputes, entitlement alone is not enough. Whether a claim relates to prolongation costs, disruption, variation, or delay in start-up (DSU), success depends on accurate quantification supported by contemporaneous documentation and recognised valuation methodologies.
The Complexity of Energy Project Claims
Energy and power generation projects typically involve:
- EPC or turnkey contract structures
- International supply chains
- Multi-party joint ventures
- Significant plant and equipment procurement
- Long construction and commissioning phases
These factors create layered financial exposure when projects deviate from programme or scope. Quantum analysis consulting ensures that cost overruns, disruption costs, and prolongation expenses are identified, analysed, and linked clearly to causative events.
Without structured financial analysis, even legitimate claims risk being discounted or rejected.
Prolongation Costs and Extended Project Duration
Prolongation costs are common in energy project disputes. When completion is delayed due to employer variations, late design information, or unforeseen conditions, contractors may incur extended preliminaries, site overheads, financing costs, and additional management expenses.
Quantum analysis consulting evaluates:
- Actual cost records
- Budget forecasts versus actual expenditure
- Contractual entitlement
- Reasonableness and mitigation
Clear, transparent calculation of prolongation costs strengthens negotiation position and supports arbitration or litigation proceedings.
Disruption and Loss of Productivity in Power Projects
Disruption claims in power generation and energy infrastructure projects often arise from resequencing of works, late access, design changes, or coordination failures. These impacts are more difficult to quantify than direct prolongation. Loss of productivity consulting requires careful comparison of planned versus actual performance, supported by labour records, resource allocation data, and site documentation.
Quantum consultants apply recognised approaches, including measured mile analysis and comparative cost assessment, to establish credible financial impact.
Delay in Start-Up (DSU) and Insurance Claims
Energy projects frequently involve delay in start-up insurance provisions. DSU claims can be high value, particularly where revenue generation is affected by late commissioning.
Quantum analysis consulting supports DSU claims by:
Aligning delay analysis with financial loss
Reviewing insured and uninsured cost components
Assessing business interruption exposure
Preparing defensible documentation for insurers and reinsurers
In complex insurance disputes, structured quantum evidence is essential to achieving recovery.
Aligning Quantum with Delay Analysis
In energy sector disputes, time and cost are intrinsically linked. Effective quantum analysis consulting must align with critical path delay analysis and entitlement assessments.
Cost claims unsupported by delay causation analysis are vulnerable to challenge. Integrated consulting ensures that prolongation and disruption costs correspond directly to delay events established through programme analysis.
This coordinated approach is particularly important in arbitration proceedings involving international EPC contracts.
Arbitration, Litigation, and Expert Evidence
High-value energy disputes frequently progress to arbitration. Tribunals expect financial claims to be clearly structured, methodologically sound, and supported by contemporaneous records.
Quantum analysis consultants prepare expert reports that:
- Explain valuation methodology
- Clarify assumptions
- Demonstrate linkage between cause and loss
- Withstand cross-examination
Credible, independent quantum evidence can significantly influence outcomes and often narrows issues before hearings commence.
Why Quantum Analysis Consulting Is Critical in Energy Projects
The financial exposure associated with energy and power generation projects is substantial. Even minor percentage variances can translate into significant monetary impact.
Poorly substantiated claims increase legal costs and commercial uncertainty. By contrast, structured quantum analysis consulting provides clarity, strengthens dispute strategy, and enhances the likelihood of fair resolution.
For project owners, contractors, and insurers operating in the energy sector, rigorous financial claims analysis is not optional — it is fundamental to effective risk management.
Conclusion
Quantum analysis consulting is central to resolving financial disputes in energy and power generation projects. By accurately calculating prolongation, disruption, and delay-related costs, consultants provide the structured evidence required in negotiation, arbitration, and litigation.
In complex energy disputes, defensible financial analysis is often the decisive factor in achieving commercially sound outcomes.
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