Restoring commercial control on a defence infrastructure programme
Commercial Stabilisation
The problem
Significant design changes had been introduced early without being recognised commercially. Cost reporting and forecasting were unreliable, so neither party could establish a credible final cost or completion date. Forecast costs exceeded 300% of the original Target Price, and customer confidence declined.
The approach
- Rebaselined the schedule.
- Rebuilt cost reporting and forecasting.
- Strengthened contractual governance.
- Restored confidence in the programme’s position.
The outcome
A renegotiated Target Price, agreed scope reductions and supplier cost recoveries returned the programme to delivery at cost.