Overview:
Full Time Commercial Management Services. The project was a joint venture between Babcock Rail and Nuttall’s for the Design, supply and installation of a new line of railway approx 14 miles from Stirling to Kincardine. Babcock’s package was for the design and installation of the railway and Nuttall’s for the civil engineering works.
The contract was NEC target cost with a pain/gain share.
IAA were appointed in July 2007 following a due diligence as instructed by the Babcock International Group (BIG) board some 12 months from commencement of the project and required to carry out a full interrogation of the contract costs to that date, inclusive of all internal, supplier and subcontractor costs. IAA established that the expected costs were not covered in the cost predictions to the client.
Additionally as a result of the joint venture contract conditions the prediction of the expected final costs and value became identified as a priority.
IAA overhauled the project variation submissions and predictions and implemented commercial and contractual procedures with respect to the overall account and subsequently then handed back the day to day administration to BAR own internal staff some 12 months later to allow finalisation of the account.
Sub-contractors accounts required detailed interrogation as monies had been previously certified to subcontractors without any correlation to target and certified amounts the correct procedures were put in place and final accounts established.
Subcontract Value: £30.0m Babcock Rail package
Final Account Value: £60.0m +