A portfolio of offshore maintenance contracts supporting North Sea installations was consistently failing to convert operational improvements into commercial value.

Although significant efficiencies were being delivered, an adversarial commercial relationship meant spending across the portfolio was managed separately from savings. Limited cost transparency prevented joint decision-making, and by the end of each contract period, overspend elsewhere in the portfolio had already eliminated the value created. Annual savings of around £3 million were routinely offset by more than £20 million of uncontrolled expenditure.

We redesigned the commercial architecture governing the portfolio by establishing a joint commercial working group with full visibility of both expenditure and savings opportunities. Rather than measuring performance independently, both organisations began managing the portfolio together, identifying and delivering efficiencies collaboratively before costs became embedded.

The result was a shift from fragmented commercial behaviour to shared commercial accountability. Realised savings increased from £3 million to £13 million, while creating a more collaborative relationship between client and contractor.