Client
Large Power Plant
Industry
Energy & Infrastructure
Revenew Services
Contract Compliance & Administration
Project Scope
Revenew’s Contract Compliance and Administration expertise was added near the midway point of a major capital project that included the 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.
Revenew’s Approach
Our project manager and compliance experts interacted 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 in real-time. Findings were primarily associated with cost-based pricing validation, personnel classification, labor cost build-up, payroll tax reconciliations, incorrect mark-up/margin, and third-party charges.
We improved our client’s ability to ensure contract terms were met as we facilitated reporting, settlement, and payment collection with each supplier. Revenew’s process also included regular reporting to senior leaders and finance. Tracking of total spend, recoveries, and ROI were improved for the long term. Ultimately, our client achieved significant cost recovery and containment results—quickly and at a high return on costs—with no impact on their project schedule.
Outcomes
- Over $3 million in recoveries achieved in one year.
- Over 500% return on costs.
- 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 were implemented with each supplier engaged.