Revenew

Major Capital Projects Require

a Heightened Level of Contractor

Compliance Management

Execution of major capital projects requires a significant financial commitment and complex contractual agreements with numerous suppliers. However, organizations routinely do not adequately mobilize the resources required to ensure all contractual obligations are administered and all commercial terms are realized.

Commercial performance of suppliers is typically not monitored in real time against all contractual obligations. Project resources are often primarily focused on meeting schedule – while limited in capacity to analyze spend data due to existing role expectations, workload and organizational turnover. Contract Compliance and Administration expertise are essential roles for effective project execution and cost containment.

Process and Resource Plan

Revenew's process includes activating Contract Compliance and Administration expertise in close coordination with existing project execution roles. Key suppliers are identified and

contract due diligence is performed with knowledgeable client stakeholders, enabling effective identification of key performance indicators (KPI's) for immediate performance monitoring.

An in-depth review of all contractual commercial terms is completed, and line item billing data of both payers and suppliers is reconciled and analyzed. All components of each invoice line item are reviewed and compared with commercial terms.

We closely interact with client and suppliers – on-site at key locations – to identify exceptions and implement corrective actions. Typical staffing includes Contract Compliance and Administration specialists in alignment with the scope of the suppliers/spend and the project timeline.

Return on Investment

Demonstrated recoveries of over $3 million in first year for major projects

Erroneous supplier spends recovered both retrospectively and in real time

Low-risk engagement with minimal budget and resource requirements

Reduced risk and containment of future costs

Improved supplier relationships and performance for ongoing and future work

Over $3 million in recoveries and over 500% return on cost in just one year as a result of engagement with one major capital project.

1CaseStudy

Revenew Contract Compliance and Administration expertise was

 

 

added to a project near the midway point of a major capital project that

 

 

included design and construction of a large power plant. Budgetary

 

 

and timeline targets had been exceeded significantly prior to our

 

 

 

involvement. In close coordination with our client's project team, over

 

 

 

20 key suppliers were identified for performance monitoring with the

 

 

 

goal of identifying cost recovery and containment opportunities for

 

 

 

immediate corrective action.

 

 

 

Our plan included a project manager and compliance experts interact-

 

 

 

ing regularly with client stakeholders and key suppliers – both on-site

 

 

 

and remotely – throughout the remainder of the project. Recovery

 

 

 

opportunities and corrective actions were identified on a real-time basis

 

 

 

– primarily associated with cost-based pricing validation, personnel

 

 

 

classification and labor cost build-up, payroll tax reconciliations,

 

 

 

incorrect mark-up and margin and third-party charges.

 

 

 

We improved our client's ability to ensure contract terms were met

 

 

 

and facilitated reporting, settlement and payment collection with each

 

 

 

supplier. Revenew's process also included regular reporting to senior

 

 

 

leaders and finance, with tracking of total spend, recoveries and return

 

 

 

on investment improved long term. Ultimately, our client achieved

 

 

 

significant cost recovery and containment results – quickly and at a

 

 

 

significant return on costs – with no impact on the project schedule.

 

 

Results

Over $3 million in recoveries achieved in one year

Over 500% return on cost

Over 20 suppliers closely engaged and monitored, resulting in improved relationships and commercial performance for the remainder of the project

Nearly 1% of reviewed spend was recovered, and additional process improvements implemented with each supplier engaged

Revenew's Performance Improvement services produce hard-dollar results for our clients — specific, tangible and often quite substantial. Please contact us today at

281-276-4500 or info@revenew.net to learn more. You have everything to gain.

www.revenew.net

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