Baton Rouge-based Shaw Group Inc. has received an arbitration award of around $32.5 million for a contract previously executed by its power segment for the engineering, procurement and construction of a 600-megawatt steam turbine electrical generation plant in the U.S.
Shaw did not identify the plant or the customer. The award is not expected to materially affect Shaw’s earnings in the fourth quarter of fiscal year 2011.
The arbitration settles “force majeure” schedule-related liquidated damages and other claims. The award covers the return of liquidated damages previously collected or withheld by the customer, payment for force majeure costs and other damages and increased costs, as well as the return of a letter of credit drawn by the customer.