Case Study - Export Refinery Construction
Our client had won a contract larger than any previous job they’d undertaken. Their project strategy was to act as principle Contractor, subcontracting specialist trades and services. At the time they contacted our Directors, their Steel contractor had failed to deliver and the solution implemented was to bring in a number of smaller subcontractors to rapidly deliver the remaining components. Managing this increased subcontractor base was leading to budgetary over-runs through increased mobilisation costs and other inefficiencies. In addition, our audit identified a number of structural and cultural factors which were negatively impacting the project. A previous consultancy firm had also landed them with a $300,000 bill for a cultural change program, which had led to increased confusion around policy and procedure, with no discernible benefit.
Our approach was to solve the immediate problems of over-running works and works being completed out of scope. By rapidly preparing change orders, negotiating changes with all parties and delivering rapid, mutually-acceptable solutions, we were able to achieve $75m in change orders, with an immediate 10% deposit approved by the client to protect cashflow. Under our care, the project returned to monthly profit.