Margins are tight; can you afford the risk of losing them?
As we all know construction and engineering projects are complex and busy environments where, sometimes, the operation of the contract and commercial discipline can get overlooked. A Blake Newport Project HealthCheck reviews the key indicators of risk within a project and identifies which need addressing so that they can be resolved rather than project margins having to absorb them.
Blake Newport has over 30 years proven experience in both bespoke and standard forms of contracts and how to operate them. Our expertise is unrivalled in analysing and recovering additional returns to maximise our clients’ revenues or minimising the risk on existing projects.
Our tried and tested approach adopts a three phase approach:
Phase 1 – On site Commercial Audit
Phase 2 – Report and face-to-face presentation to our client
Phase 3 – Development and implementation of recommendations.
This is the key phase in that it identifies the nature and extent of the commercial issues or opportunities existing within the contract and on the project. A Blake Newport consultant will review key documentation including programmes for the project, using a HealthCheck form similar to this one. The time period required for this review will be 1 – 3 days depending on the size of the project.
The foundation of this phase will be the review of payment accounts, contracts, programmes, correspondence, etc.
Phase 2 will be conducted from Blake Newport’s office. The information gained will be analysed and written up by the consultant who conducted the HealthCheck. The report will include:
- Brief overview of the scope of the contract
- Synopsis of the status of the contract at the report cut off date
- Overview of the commercial and programme status of the contract contrasted against the position as contemplated by the contract
- Schedule of key risks identified through the process
- Recommended next steps.
At the end of Phase 2, Blake Newport will present face-to-face the findings and analysis of the HealthCheck to the relevant Director or Manager.
The third Phase is optional and is not part of the fixed fee. This phase involves the preparation of a strategy and, if required, implementation of the strategy to reduce the identified risks and realise opportunities to improve the existing financial or programme position. The use of a third party, such as Blake Newport to present, discuss, negotiate and agree difficult issues with client’s, sub-contractors or suppliers provides objectivity that can often break the deadlock of commercial issues surrounding matters that may have existed for some time. The deployment of Blake Newport can also introduce a degree of distance from the detailed and often fraught resolution of contentious matters helping to preserve relationships, often built up over a number of years.