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Second level
Third level
Contract
Compliance
– Fourth level
» Fifth level
A Presentation by
2. Strengthening the Pillars of Business
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Second level
Aim:
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– Fourth level
» Fifth level
To inform clients of the
Contract Compliance Services
& Capabilities offered by
CorGuv.
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3. Background & Skills
CorGuv is 51/2 years formed after a successful SOX
implentation.
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Background & Skills:
Second level
Contract level
Third Compliance/Management
Forensic Investigations.
– Fourth level
» Fifth level
Business Process & Risk Analysis.
Project Management & Governance.
Internal Control - System Design & Implementation.
Joint Venture Auditing
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4. Customers
Apache North Sea.
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Second level BG Group.
Third level
Centrica Energy.
– Fourth level
level
» Fifth Premier Oil.
Marathon Oil.
Total E&P UK.
Venture Petroleum
BP Exploration.
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5. The Scope of Contract Compliance Services
Monthly Contract Checks
Checks on Scope, Rates, Invoices & Processes, Man
hours, Overtime, Burdens, Equipment & Running Charges
FULL SCOPE OF CorGuv’s SERVICES
Rates, Variation Orders, Amendments.
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Second level
Forensic Investigations
Third ‘Beyond the Paper’
Investigative approach – level
– Fourth level
Third Party pricing checks.
Feedback on ‘Actual’
Cross-Referencing different» Fifth level
data-bases. Performance
Process Reviews.
Root Cause Analysis.
Review & Improvements to:
Procurement Processes.
New Contracts.
Award.
Long Term Benefits from a Holistic Approach5
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6. Independent Contract Compliance Review
Initial Health Check
3-5 days internal audit (normal rates).
Initial report.
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Proposal to proceed with commercial styles
Agreement Secondproceed.
on how to level
Third level
Forensic Audit
– Fourth level
Audit on contractor’s books.
» Fifth level
Monetary and procedural.
Findings and negotiating strategy.
Root Cause Analysis for future contract improvements.
Negotiations on Findings
Agree Negotiating Strategy.
Negotiate Recoveries.
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7. Value Through Improvements
Future Leverage on:
1. Risk Reduction.
2. Reduction of Overcharging.
10% 3. Reduction of Fraud
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Master Analysis applied exposure.
4. Cost Effective Contracts.
1.Existing Contract Conditions.
Second level Tenders.
2. New
5. Contractual Relationships.
Future Savings
3.Invoicing Process.
Third level
4.New Contracts.
5% Strategy
– Fourth level
Scoping
Recoveries
» Fifth level
Tender
Monetary
Improvements Evaluation
Findings
Award
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8. Example
5 year contract, £7,000,000 p.a
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Time taken – 25 days. styles
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Actual Cash recovered £600,000:
Third level £24,000 per day
– Fourth level
Total Reward, £95,000: £3,800 per day.
» Fifth level
Time Charged client-risk - £16,000: £640 per day.
Contract Strategy Changes - £4,000,000: £160,000 per day
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9. Why we have Something Special to Offer
Experience – 30+ years in Supply Chain, Contracts,
Management, QS or Audit. All our staff are selected for their
Curiousity, Persistence, Maturity, & Focus on the client-supplier
relationship.
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Scope –Depth, Supply Chain, Root Cause Analysis, Follow-up,
Second Improvements.
Sustainable level
Third level
Investigative Techniques – our proprietary process ensures
we find issues.
– Fourth level
Focus – Commercial/Ethical, dedication to the task, can be an
» Fifth level
addition to company audit programs.
Independent – Willing to seek out reality, no conflicts of
interest, completely confidential.
Results – our Project Management approach delivers
benefits/value in a limited time.
Commercial Flexibility –Standard Rates, Fixed Price or
Risk/Reward as appropriate.
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10. Case Studies (CorGuv)
Average recovery could be 5-10 times the cost.
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NIC overcharges of £3.0m.
Second level
Identification of excess profits of £1.5m due to unethical third party
invoicing. Third level
– Cost level
£700 m Project –Fourth Recovered - £40-50 m.
» Fifth level
Checking of sub-contract costs showed 65% discount of £1.5 m not
passed on to client over 3 year period.
Over charge on local delivery of 45% margin reduced to 5% (£1.0 m).
Review of timesheets for engineering contract identified accounting
allocation errors resulted in over charging by £1.5m.
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11. Business Benefits
Performance
In-depth insights and feedback of your contract's real performance.
Improved contract/procurement strategies - through feedback of actual performance.
Improved service delivery.
Improved contract management.
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Costs Second level
Cost Recoveries, if due.
Third level
Sustainable future cost savings – through improvement of contract strategy & drafting.
– Fourth level
Reduction in the potential for unethical activity.
» Fifth level
Relationships
Improvements with JV partners.
Improvements in client/supplier relationships – through improved transparency,
openness & trust.
Time
Time saved on dispute resolution.
Time saved on invoice checking - due to improved invoice process/documentation.
Risk/Reward deals - that avoid on-going consultancy costs and maintains our commitment.
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Assurance that Contracts are cost effective, commercial & Ethical.
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12. Summary
Based on our Core knowledge of post-award performance
we can apply our experience at any point in the Contract
Cycle:
Post-Award contract performance, Forensic Audits.
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Procurement & Award Phase.
Second level
Contract drafting.
Third level
Contract Management.
– Fourth level
Contract Strategy.
Setting up Compliance Regimes.
» Fifth level
Health Check is a low cost entry point.
The Benefits . . . . . . . . .
We Recover for our clients what is rightfully 12
theirs. 12
13. Summary
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Second level
Third level Cost Recoveries
– Fourth level
Historic Errors &
» Fifth level
Overcharging.
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14. Summary
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Long-Term Improvements
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– Fourth level
Contract Management and
» Fifth level
Strategy.
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15. Summary
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Experienced staff
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– Fourth level
Integrity, Curiosity, Maturity
» Fifth level
.
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16. Summary
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Third level Independence
– Fourth level
Free from operational
» Fifth level
pressures.
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17. Summary
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Deterrence of Fraud
Third level
– Fourth level
Fear of being detected.
» Fifth level
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18. Testimonial
"CorGuv have undertaken a number of contract compliance
assignments on behalf of Apache . All of these assignments have
been performed efficiently & effectively and with minimal
effort/inputto edit Master text styles client . Without doubt CorGuv
Click required from us as the
has delivered value on each assignment. Cash recoveries alone have
Second level
been substantial although that was not the primary objective in
every assignment.level
Third CorGuv have also assisted us to further clarify &
strengthen our contracts which has subsequently saved even greater
– Fourth level
costs in future contracts. CorGuv have a well developed process for
keeping audit costs to a minimum whilst maximising benefits. In
» Fifth level
particular, they treat the whole process as a project, focusing on
delivering value, including supporting us right up to the point
where recovery negotiations are complete. In short CorGuv offer a
compelling blend of experience and commercial knowledge that
delivers a complete service and I have no hesitation in
recommending their services."
General Services Manager, Apache North Sea
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19. Click to edit Master text styles
Strengthening
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Third level
the Pillars
– Fourth level
»of Business
Fifth level
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20. Early Intervention
Potential for Loss/Gain Recoveries: Higher
costs and lower leverage
Future Savings
limit the value.
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Recoveries
and higher leverage
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maximise the value.
Third level
– Fourth level
Cost of Correction » Fifth level
Operation
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