
Commercial architecture restored confidence in a strategic defence programme after costs exceeded 300% of the original Target Price.
Commercial Stabilisation
A strategic defence infrastructure programme had entered delivery with a fundamental mismatch between the contractual position and the reality of the work being undertaken.
Significant design changes had been incorporated at the outset without appropriate commercial recognition, while unreliable cost reporting and programme forecasting meant neither the contractor nor the customer could establish a credible view of the project's final cost or completion date. As forecast costs escalated to more than 300% of the original Target Price, the programme was placed under increasing commercial pressure and customer confidence deteriorated.
MBY stabilised the programme by re-establishing commercial control. The schedule was rebaselined, cost reporting and forecasting were completely rebuilt, contractual governance was strengthened and confidence in the programme position was restored.
The programme returned to delivery at cost through a renegotiated Target Price, agreed scope reductions and supplier cost recoveries, restoring confidence in both affordability and governance.
